The Hindu Business Line : Finolex Ind Q1 net dips

FINOLEX Industries Ltd (FIL) has reported a turnover of Rs 204.32 crore for the first quarter ended June 2005 as compared to Rs 226.10 crore in the corresponding period of the previous year, a decline of 9.6 per cent.

The net profit for the quarter is lower at Rs 2.69 crore as compared to Rs 27.33 crore for the corresponding quarter last year. An official communication of the company has stated that net profit for the quarter has come down mainly on account of steep increase in the prices of the company's raw materials.

It noted that the international PVC prices declined sharply during the quarter resulting in reduced margins . The company was not in a position to pass on increase in feedstock prices to consumers. During the current quarter the annual routine maintenance shutdown got extended. The loss of PVC Resin production during the quarter has been to the extent of 8,600 tonnes.

During the quarter, FIL's plant operated at 69 per cent capacity utilisation on account of extended shutdown. However, PVC pipes production has been higher at 111 per cent partly from imported PVC. The demand for pipes had been strong, reflecting a 27 per cent growth in turnover. In the case of PVC Resin, sales reduced by 33 per cent on account of production constraints.

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