Share the post "Finolex Industries Ltd. : .Q4 .2024 .Quarterly Earnings: .YoY Sales Up .8.27. %, QoQ Up .21.16. %"
Highlights
- Sales over the Year and quarter: The company experienced a substantial growth of 8.27 % in the past year, substantial increase in net sales/revenue by 21.16 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 26.31 %. Marginal increase in other income during this quarter, up by 15.03%.
- Profit over the Year and quarter: Challenges in sustaining profitability for Finolex Industries Ltd.. Profit dropped by -0.96 % Year to Year, Finolex Industries Ltd.’s profitability increased by 72.85 % in this quarter.
- EPS over the Year and quarter: EPS declined by -0.37 % Year to Year. EPS increased by 73.38 % in previous quarter. Positive impact on shareholders.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 1141.06 Cr | Rs. 1019.69 Cr | Rs. 1235.42 Cr | + 21.16 % | + 8.27 % |
| Expenses | Rs. 923.63 Cr | Rs. 899.79 Cr | Rs. 1026.49 Cr | + 14.08 % | + 11.14 % |
| Operating Profit | Rs. 217.43 Cr | Rs. 119.9 Cr | Rs. 208.93 Cr | + 74.25 % | -3.91 % |
| OPM % | 19.06 % | 11.76 % | 16.91 % | + 5.15 % | -2.15 % |
| Other Income | Rs. 42.65 Cr | Rs. 46.83 Cr | Rs. 53.87 Cr | + 15.03 % | + 26.31 % |
| Interest | Rs. 6.46 Cr | Rs. 7.66 Cr | Rs. 7.31 Cr | -4.57 % | + 13.16 % |
| Depreciation | Rs. 23.8 Cr | Rs. 27.57 Cr | Rs. 26.68 Cr | -3.23 % | + 12.1 % |
| Profit before tax | Rs. 229.82 Cr | Rs. 131.5 Cr | Rs. 228.81 Cr | + 74 % | -0.44 % |
| Tax % | 29.26 % | 30.14 % | 29.22 % | -0.92 % | -0.04 % |
| Net Profit | Rs. 166.5 Cr | Rs. 95.4 Cr | Rs. 164.9 Cr | + 72.85 % | -0.96 % |
| EPS in Rs | Rs. 2.68 | Rs. 1.54 | Rs. 2.67 | + 73.38 % | -0.37 % |
Today, we’re looking at Finolex Industries Ltd.’s financial performance for the Q4(Mar 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 8.27 %. However, it did see a marginal increase of 21.16 % from the previous quarter. Expenses ticked up slightly by 14.08 % quarter-on-quarter, aligning with the annual rise of 11.14 %. Operating profit, while down -3.91 % compared to last year, faced a quarter-on-quarter increase of 74.25 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -2.15 %, but an expansion of 5.15 % sequentially. Other income rose by 15.03 % compared to the last quarter, despite an annual growth of 26.31 %. Interest expenses dropped significantly by -4.57 % from the previous quarter, yet the year-over-year increase remains at a moderate 13.16 %. Depreciation costs fell by -3.23 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 12.1 %. Profit before tax declined annually by -0.44 % but saw an increase from the preceding quarter by 74 %.
Tax expenses as a percentage of profits decreased slightly by -0.04 % compared to last year, with a more notable quarter-on-quarter decrease of -0.92 %. Net profit fell by -0.96 % year-on-year but experienced a 72.85 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -0.37 % but a quarterly rise of 73.38 %. In summary, Finolex Industries Ltd.’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 1141.06 Cr | Rs. 1019.69 Cr | Rs. 1235.42 Cr | + 21.16 % | + 8.27 % |
| Expenses | Rs. 923.63 Cr | Rs. 899.79 Cr | Rs. 1026.49 Cr | + 14.08 % | + 11.14 % |
| Operating Profit | Rs. 217.43 Cr | Rs. 119.9 Cr | Rs. 208.93 Cr | + 74.25 % | -3.91 % |
| Net Profit | Rs. 166.5 Cr | Rs. 95.4 Cr | Rs. 164.9 Cr | + 72.85 % | -0.96 % |
| EPS in Rs | Rs. 2.68 | Rs. 1.54 | Rs. 2.67 | + 73.38 % | -0.37 % |
In reviewing Finolex Industries Ltd.’s 2024(Q4) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 8.27 % year-on-year growth, however, there was a minor increase of 21.16 % from the previous quarter. Expenses rose by 11.14 % compared to the previous year, with a 14.08 % increase quarter-on-quarter. Operating Profit dropped by -3.91 % annually, and saw a 74.25 % increase from the last quarter.
Net Profit showed yearly decrease of -0.96 %, and experienced a 72.85 % increase from the previous quarter. Earnings Per Share (EPS) fell by -0.37 % annually, however rose by 73.38 % compared to the last quarter. In essence, while Finolex Industries Ltd. faces strong annual decline indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
-17
3-Year Profit
2
5-Year Profit
8
10-Year Profit
281
Current Price
17,439
Market Cap
Upon examining the financial data for BSE code 500940, it becomes clear that the company achieved a notable five-year profit of 2 percents, which impressively increased to -17 percents in the three-year window. This upward trajectory, however, has been overshadowed by the latest trailing twelve-month (TTM) figures, which indicate a concerning loss of 112 percents. This financial loss is further compounded by the fact that the company has not recorded any sales across any of the timeframes under consideration. Such an unusual situation might suggest that the company operates under an unconventional business model, which could potentially carry higher risks. In terms of stock performance, the company’s stock price has seen a decline, falling from 19 percents over the five-year period to just 20 percents in the last year. The ten-year average stock price, which sits at 15 percents, highlights long-term volatility, casting doubt on the company's ability to sustain its market position over time. This warrants further investigation into the factors driving these fluctuations.
With a market capitalization of ₹17,439 crore, the company’s stock is currently trading at ₹281, having fluctuated within a range of ₹356 / 186 over the years. The stock's P/E ratio of 32.5 reflects a relatively high valuation compared to its earnings, which could suggest strong future growth expectations or heightened investor demand. The company’s book value is ₹90.8, representing the total value of its assets on a per-share basis, while the dividend yield of 0.89% offers a modest return to shareholders. ROCE, at 10.9%, highlights the company's efficient use of capital in generating profits, while ROE at 8.14% underscores its ability to generate returns for shareholders. The debt-to-equity ratio of 0.07 is very low, indicating conservative financial management and minimal reliance on borrowed funds. Despite this, the company shows a negative net cash flow of ₹-6.41 crore, which could point to cash management challenges or recent heavy investments. The Piotroski score of 7.00 suggests moderate financial strength, while the Graham Number, pegged at ₹168, offers a rough estimate of the stock's intrinsic value. The Price-to-Book (P/B) ratio of 3.10 signals that the stock is trading at a premium, which might reflect investor confidence in the company's growth trajectory.
