• Net sales increased 17.6% on a y-o-y basis to Rs 662.7 crore for Q1FY'15 while EBITDA before exceptional items increased 32% to Rs 124.6 crore. EBITDA after exceptional items increased 165% to Rs 107.9 crore. PBT was up 125% to Rs 71.5 crore. PAT increased 122% to Rs 50.2 crore.

• The Company settled an old derivative dispute out of court. The amount appears under ‘Exceptional Items' in the Profit and Loss Account.

• Demand for PVC pipes & fittings bounced back in Q1FY15. The sales volumes for PVC pipes and fittings grew by 8.2% YoY to 58,239 MT in Q1FY15.

• The company had covered its entire forex exposure by way of forward covers / plain vanilla options anticipating increased volatility in forex rates around election time. Finance cost increased 95% to Rs 26.8 crore in Q1FY'15 because of premium paid on such covers.

• During Q1FY15, there was favourable shift in PVC and EDC prices. Toward the end of Q1FY15, the PVC/EDC spread widened to $610/MT from $530/MT in the end of Q4FY14, an improvement of 15%.With the new global EDC capacities expected to come on stream in the coming quarters, the spreads are expected to remain healthy.

• The company;s new warehousing facility in Cuttack, Odisha in FY14 would increase distribution presence, cut delivery days and inventory cost for dealers and distributors

• Anti-dumping duty on PVC (raw material) exported from various countries into India has been increased for the period of five years starting from June 13, 2014. As a result the company expects PVC prices to rise in India

• The outlook for the current year is positive as demand from agricultural sector as well as construction sector is expected to keep growing.

• The demand for company's products continues to be strong.

• Various announcements by the government in Union budget 2014 to increase the reach of irrigation and drinking water supply is expected to give a further boost to demand for PVC pipes and fittings.

Union Budget 2014

• Custom duty reduction on Ethylene (raw material) from 5% to 2.5%, in the Union budget, to aid cost reduction

• A target of Rs 800,000 crore for agriculture credit during 2014-15

• Allocation of Rs 1000 crore to improve access to irrigation under Pradhan Mantri Krishi Sinchayee Yojana

• MGNREGA revamp – 60% funds now to be spent on Agri-asset creation

• Increased allocation of Rs 8000 crore for National Housing Bank to expand rural housing

• Earmarking Rs 3600 crore under National Rural Drinking Water Programme

• Outlay of Rs 7060 crore for development of 100 smart cities

• Total sanitation by the year 2019

• Continuation of Interest subvention scheme for short term crop loans giving 3% incentive on timely repayment

• Interlinking of rivers gets priority

• Rs 5000 crore added to Rural Infrastructure Development Fund over and above the target of Rs 25,000 crore for creation of infrastructure in agriculture and rural areas

• Government's Motto for irrigation – Har Khet Ko Pani (Water to all fields) by brining in innovative idea and use of technology