Shares of Finolex Industries Ltd hit the upper circuit on both the BSE and NSE and a fresh 52-week high today after the company came out with impressive Q4 numbers and a handsome dividend payout.

The company has announced a dividend payout of Rs 5.50 per share.

Buoyed by the results and good dividend payout, the stock hit the upper circuit and a fresh 52-week high.

On the BSE, the stock was frozen at Rs 119.30, a gain of Rs 19.85 or 19.96 per cent with a trading volume of 5.63 lakh shares. There were buyers for 1.28 lakh shares with no sellers.

On the NSE, the stock gained 19.99 per cent to Rs 119.15, up by Rs 19.85 with a trading volume of 9.93 lakh shares.

The huge appetite for the stock was evident by the fact that while there were buyers for 3.87 lakh shares in the exchange, there were no sellers!

The stock has more than doubled in the past one year. While it touched a yearly low of Rs 50.05 on May 23, 2012 on the NSE, it had rallied on the BSE from a 52-week low of Rs 53.65 it had touched on May 14 last year.

Net profit, total income

According to the audited financial results for Q4 of 2012-13, the company earned a total income of Rs 629.59 crore compared with Rs 593 crore in the same period previous fiscal. Net profit for the quarter was Rs 79.34 crore (Rs 56.19 crore).

For the full year, the income was Rs 2,124.25 crore (Rs 2,080.97 crore) and the net profit jumped 81.15 per cent to Rs 136.13 crore (Rs 75.15 crore).

In fact, it was the huge tax outgo that dented the net profit both in Q4 and during the full year. While the company’s tax outgo during Q4 was Rs 31.28 crore (Rs 16.61 crore), for the full year it was Rs 54.01 crore against Rs 21.59 crore.

EPS for the full year was Rs 10.97 (Rs 6.06).

Capacity expansion

The company, which is the largest manufacturer of PVC pipes and fittings in the country, has also indicated that it would go for expansion of capacity of PVC pipes to meet the growing demand.

Saurabh S.Dhanorkar, Managing Director, Finolex Industries, said the demand for the company’s products remained strong.

Demand for PVC pipes

He was hopeful that with the Government of India increasing the allocation for rural water supply and irrigation in the 12th Five-Year Plan, the demand for PVC pipes would continue to grow. The company, with its pan-India presence, would benefit from this.

Finolex Industries, which had recently commissioned a greenfield plant for PVC pipes manufacture at Masar in Gujarat, will enhance the plant’s capacity from 30,000 tonnes per year to 50,000 tonnes during the current fiscal to meet the demand in North India.

It has also doubled the production capacity of emulsion PVC resins, which is of speciality grade used in applications like footwear, flooring etc., from 10,000 tonnes a year to 20,000 tonnes. The 43-MW power plant at Ratnagiri is fully operational.

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