In conversation with Chandan Verma, CFO, Finolex Industries Ltd

“Q4 was particularly strong, and that gives us confidence. With our wide product basket and 900+ exclusive distributor network, we’re well-positioned to ride the next wave of demand”, affirms Chandan Verma, CFO, Finolex Industries Ltd

In light of the company’s FY25 financial performance, what key factors contributed to the marginal year-on-year decline in revenue, while still delivering an impressive net profit growth of around 75 per cent compared to FY24?

Our realisation is market-linked. It changes in line with changes in PVC resin price in the market. During FY25, although our volume was up by 3 per cent, revenue saw a slight dip—from Rs 4,317 crore in FY24 to Rs 4,242 crore this year—mainly because of softer PVC resin prices. PBT per cent (before exception item) on a year-on-year basis has remained the same. There is a sharp jump in profit after tax, from Rs 455 crore in FY24 to Rs 777 crore in FY25, contributed by operational efficiency and exceptional gain from the sale of land. We also saw improved profitability in Q4, especially in the Pipes and Fittings segment, where EBIT per kg went up to Rs 10.53 from Rs 3.75 in the previous quarter.

How has the volatility in raw material prices, particularly PVC resin, affected your profit margins, and what strategies are in place to mitigate these impacts?

PVC price volatility is a constant in our industry, and this year too it posed challenges. But being backward-integrated helped—we manufacture our own resin, which gave us better control over costs. By recalibrating pricing based on real-time input trends and keeping a close eye on inventory levels, we were able to protect our margins.

Given that the Pipes and Fittings segment accounts for nearly 71 per cent of total revenue, how has this segment performed over the past year? What are your expectations and growth outlook for this segment going forward?

Pipes and Fittings contributed Rs 4,104 crore in revenue this year. Despite a subdued demand environment in the first half, volumes grew by 3 per cent to 3,47,982 metric tonnes. Q4 was particularly strong, and that gives us confidence. With our wide product basket and 900+ exclusive distributor network, we’re well-positioned to ride the next wave of demand.

What are the top three strategic priorities currently guiding the company’s growth plans, and are there any significant capex initiatives lined up for the near future?

Our strategy is anchored around supply chain modernization and deeper market penetration with a focus on enhancing our presence in the non-agri sector. In FY25, we invested Rs 115 crore in capex, largely focused on debottlenecking, automation, and upgradation across plants. We’ve also rolled out warehousing in Pune to make our supply chain leaner and faster. Going forward, we’ll continue investing in areas that strengthen long-term competitiveness rather than short-term gains.

How is the company adapting to the increasing emphasis on sustainability and green manufacturing practices?

At Finolex, we recognize that operational excellence goes hand in hand with sustainable and responsible business practices. From using eco-friendly material to optimizing the production process, we continuously strive to minimize our ecological footprints. In FY24, we increased renewable energy usage to 3.2 per cent, set up a 0.5 MW rooftop solar plant at our Badhalwadi facility, and reduced over 20,000 tonnes of CO₂ emissions across operations. Our Ratnagiri plant earned the ‘Responsible Care’ certification from the Indian Chemical Council, which is a big validation of our efforts. We also recycled over 2,60,000 cubic metres of treated water and harvested 3,15,000+ cubic metres of rainwater—measures that contribute meaningfully to environmental conservation.

What trends do you foresee shaping the future of the industry, and how is the company preparing for them?

It is expected that the Indian PVC pipe industry is going to witness remarkable growth in the next few years. This growth opportunity will come mainly from infrastructure development, rapid urbanisation, agricultural sector growth, and water conservation, etc. There’s a definite move toward branded, organized players—especially in rural and semi-urban areas. People want quality, reliability, and long-term value. We’re expanding our reach in Tier 2 and Tier 3 markets. We are continuously putting our effort to increase our share in the non-agri sector that has good potential for growth. The next phase of growth will reward companies that are agile, trustworthy, and future-ready—and that’s the mindset we’ve adopted.