Finolex Industries Sees Robust Demand In Plumbing, Sanitation In Q2; Targets Pre-Pandemic Volume This Fiscal

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Finolex Industries Sees Robust Demand In Plumbing, Sanitation In Q2; Targets Pre-Pandemic Volume This Fiscal

JM Financial wrote an interesting report on the plumbing and sewer pipe space where demand has picked up well and June and July have been very encouraging. To get a perspective, CNBC-TV18 spoke to Niraj Kedia, Deputy CFO of Finolex Industries.

JM Financial wrote an interesting report on the plumbing and sewer pipe space where demand has picked up well and June and July have been very encouraging. To get a perspective, CNBC-TV18 spoke to Niraj Kedia, Deputy CFO of Finolex Industries.

When asked, Kedia said: “The second quarter is actually a slower quarter compared to the first quarter in the agricultural and sanitation sectors. In agriculture, mainly because the monsoons set in and fewer pipes are being laid in the fields, and due to the season, construction activity usually declines somewhat in the second quarter. But this year I would rather agree with what the analyst report says that demand has been pretty robust. “

“After the removal of the COVID curbs, there is a strong demand for sanitary and sanitary facilities on the urban side. This is because the retailers can open their shops and there was a lot of catching up to do, which in the past slowed down some of the buoyancy. So after the curbs are lifted, after people start opening their stores, we’re seeing pretty robust demand in the plumbing and plumbing work, ”he said.

Regarding the volume forecast, he said: “Business was in decline overall. This year our goal is to reach the level of FY20. In view of the course of business in the first quarter and also in this quarter, we are fairly confident that we will achieve the level of FY20 again this year. “

Commenting on revenue, Kedia said, “We had a lower base last year, but in terms of Q1 volumes, we were 70 percent higher, our volumes were 5 to 5.50 percent higher, which is not bad at all, for ourselves This year there were COVID restrictions. But in terms of sales, when you talk about topline, it has increased by 70 percent. “

Regarding government projects, he said, “We are not directly involved in government projects. It is our dealers, distributors who bid for these projects on their own responsibility. So in our case it doesn’t usually matter to our margins because for us it’s every other sale and I can’t say what margin our dealers get on these projects, but as far as the initiative goes and the demand goes, yes, we do see a certain attraction. “

For the full management commentary, see the video.