Greenpanel Inds slips as PAT slumps 58% YoY in Q1

Greenpanel Industries slipped 3.35% to Rs 346.55 after its consolidated net profit declined 57.56% to Rs 15.71 crore on a 5.49% slide in net sales to Rs 364.95 crore in Q1 FY25 over Q1 FY24.

On the segmental front, MDF sales were at Rs 331.78 crore (down 2.5% YoY) and Plywood sales stood at Rs 32.37 crore (down 28.1% YoY) in the first quarter of FY25.

MDF sales volumes grew by 2.8% YoY while Plywood volumes de-grew by 22.8% YoY during the period under review.

EBITDA Margin slipped to 10.9% in June 2024 quarter as compared with 18.7% posted in same quarter last year.

Profit before tax stood at Rs 21.38 crore in the quarter ended June 2024, down by 57.02% from Rs 49.74 crore in corresponding quarter previous fiscal.

Net debt stood at Rs 103.38 crore as on 30 June 2024, inclusive of Rs 214 crore for expansion project.

Working capital investment increased by 8 days YoY to 36 days as on 30 June 2024, due to increase in wood inventories to prepare for the monsoon season.

Managing director & CEO, Greenpanel Industries, said: MDF domestic volumes increased by 10.2% over the YoY quarter. However, export volumes were impacted by lower availability of containers and steep increase in ocean freight rate. MDF domestic volumes were also impacted due to price reduction by competition.

MDF EBITDA margins at 12.1% were impacted by steep increase of 31% in wood prices (blended for both plants) over 1 year and lower domestic volumes on sequential basis. We maintained working capital discipline although we increased wood inventory to prepare for the monsoon season. Widening distribution reach and increasing domestic volumes and proportion of valueadded products will be our major focus areas in future quarters.

Greenpanel Industries is India's largest manufacturer of wood panels. Its manufacturing plants in Uttarakhand and Andhra Pradesh make medium-density fibreboard (MDF), plywood, veneers, flooring, and doors.

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