Finolex Industries on Saturday reported a net profit of Rs 42.97 crore for the third quarter (Q3) ended December 31, 2015, on account of lower expenses. The company had posted a net loss of Rs 43.81 crore in the same quarter of the previous fiscal.

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However, the company's net sales during the quarter under review declined by 15.18% to Rs 540.87 crore as against Rs 637.68 crore in the same period a year ago, the company said in a BSE filing.

The company's overall expenses were down 28.61% to Rs 475.8 crore as compared to Rs 666.5 crore in the corresponding period of the last fiscal which contributed to the company's net profit despite a fall in net sales in the quarter.

In January, Finolex Industries, which is into manufacturing of PVC-U pipes and fittings, had said that it plans to invest Rs 100 crore to add 1,00,000 tonnes of manufacturing capacity over the next three years. The Rs 100-crore expansion will be funded through internal accruals only as the company generates around Rs 150-200 crore cash flow every year.

The company's current debt is estimated at Rs 500 crore and it aims to become debt free in three years, the company said.

The Pune-headquartered company has manufacturing plants located at Urse and Ratnagiri in Maharashtra and Masar in Gujarat.  

On Friday, the stock of Finolex Industries closed down 3.71% or Rs 10.95 at Rs 284.40 on the BSE.