Greenpanel Industries advanced 3.61% to Rs 248.45 after the company's consolidated net profit surged 647.80% to Rs 56.46 crore on 63.5% rise in net sales to Rs 388.79 crore in Q4 March 2021 over Q4 March 2020.
Profit before tax (PBT) stood at Rs 85.67 crore in Q4 FY21 from Rs 0.79 crore in Q4 FY20.
On a standalone basis, company's net profit soared 765% to Rs 57.87 crore on 64.4% jump in net sales to Rs 388.79 crore in Q4 March 2021 over Q3 March 2020.
Plywood revenues grew 65.4% Y-o-Y to Rs 82.74 crore in Q4 FY21 over Q4 FY20, contributing 22% of net sales. Medium Density Fibre Boards (MDF) revenues jumped 70.3% Y-o-Y to Rs 301.62 crore during the same period, contributing 78% of net sales.
Gross margins fell by 442 bps Y-o-Y to 53.8% due to increase in raw material prices and increase in sales to OEMs. Standalone EBITDA margins jumped 662 bps Y-o-Y to 25.8% in Q4 March 2021 from 19.1% in Q4 March 2020, due to wastage reduction, superior product mix, cost optimization and operational leverage in both MDF and plywood segments.
Gross debt to equity at 0.57 as on 31 March 2021 compared with 0.78 as on 31 March 2020. Net debt reduced by Rs 76 crore and Rs 157 crore, during Q4 and FY 2021 respectively, to Rs 376 crore as on 31 March 2021.
Commenting on the Q4 FY2021 performance, Shobhan Mittal, managing director and chief executive officer (CEO) of Greenpanel Industries, said: "Business has gathered further momentum in Q4. MDF sales volumes have grown by 54.4% year-on-year and operating margins have improved by 613 basis points to 28.6%. Plywood volumes grew by 58% and operating margins have increased by 811 basis points to 15.5%. This is due to our continuous focus on reducing wastage, superior product mix, cost optimization and operational leverage."
"Working capital investment has reduced by 10 days year-on-year to 35 days as on 31st March 2021. We will continue to remain focused on working capital efficiency and debt reduction. Net Debt reduced by Rs 76 crore, during Q4, to Rs 376 crore as on 31st March 2021 and we are targeting to reduce it by Rs 150 crore during FY2022. Our emphasis on widening the distribution reach and focus on small towns and cities is yielding results both on volumes and reduction in working capital investment. We are optimistic on sustainable growth in future quarters," he added.
Greenpanel Industries is a manufacturer of wood panels. Its manufacturing plants in Uttarakhand and Andhra Pradesh produce Medium Density Fibre Boards (MDF), Plywood, Block Boards, Veneers, Wood Floors and Doors.
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