Q1 2025 Greenply Industries Ltd Earnings Call Transcript
Key Points
- Greenply Industries Ltd (BOM:526797) achieved a consolidated revenue of INR584 crores during Q1 FY25, marking a 35.7% Y-o-Y growth.
- The company's consolidated EBITDA grew by 101.6% Y-o-Y to INR58 crores, with margins improving to 10% from 6.7% in Q1 FY24.
- Profit after tax for the quarter was INR33.2 crores, benefiting from an income tax refund pertaining to earlier years.
- The MDF business saw an improvement in EBITDA margins to 16.6% from 14.1% in the previous quarter, driven by better product mix and operational efficiencies.
- Net debt levels were reduced to INR431 crores from INR502 crores in the previous quarter, thanks to reduced working capital and strong profitability.
- The plywood business experienced a decline in adjusted core EBITDA margin to 7.9% from 8.7% in Q1 FY24 due to increased raw material prices.
- Despite the revenue growth, the volume growth in the plywood business was only 8.6% Y-o-Y, indicating potential market saturation or competition.
- The company faced delays in the Samet project due to late machinery deliveries and challenges in hiring key sales positions, impacting potential sales.
- There is pressure on raw material costs, particularly timber, which has seen a slight increase, affecting margins.
- The company remains cautious about committing to higher margin guidance due to ongoing competitive price cuts in the MDF market.
Ladies and gentlemen, good day, and welcome to the Greenply Industries Limited Q1 FY25 earnings conference call hosted by Asian Market Securities Limited.
This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties, that are difficult to predict. Actual results may differ from such expectations, projections, et cetera, whether implied or expressed. Participants are requested to exercise caution while referring to such statements and remarks.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Karan Bhatelia from Asian Markets Securities Limited. Thank you, and over to you, sir.
Thanks, Neha. Hi, everyone. On behalf of Asian Market Securities, we thank you for joining us on the Greenply Industries 1Q FY25
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