Greenpanel Industries Limited, India’s largest wood panel manufacturer, today announced its unaudited consolidated financial results for the quarter ended 30 June 2023, the company announced through an exchange filing.
Speaking about the financial results, Shobhan Mittal, Managing Director and Chief Executive Officer, Greenpanel Industries Limited said, “MDF gross margins improved over the sequential quarter. Sales Volumes were lower during the quarter due to the maintenance shutdown of Rudrapur plant for 19 days during April 2023. MDF EBITDA Margins at 20.4% were impacted by:
a) Maintenance Shutdown of Rudrapur Plant for 19 days in April 2023;
b) Higher brand spends at ₹ 14.9 crores (3.9 percent of sales);
c) Increase in wood prices;
Mix of Value-added products improved by 500 bps y-o-y to 54 percent of domestic volumes.
Plywood volumes fell by 37 percent y-o-y in Q1FY24; operating margins at 5.9 percent were impacted by lower volumes.
Consolidated operating margins for Q1FY24 at 18.7 percent were impacted due to the above reasons. We maintained working capital discipline although we increased wood inventory to prepare for the monsoon season.
Net debt reduced to negative ₹165 crores as on 30 June 2023.
Increasing the Greenpanel Brand Value, by associating with Delhi Capitals, an IPL Franchise, as principal sponsor for 3 years. Global agency Yougov has assessed the media value attributed to the visibility we got at ₹296 crores.
Financial Performance Q1FY24 vs Q1FY23
Net sales during Q1FY24 was ₹385.16 crores compared to ₹462.75 crores in Q1FY23. MDF Sales fell by 13.2 percent at ₹340.17 crores and contributed 88 percent of the topline. MDF export volumes grew by 3.1 percent at 27,430 CBM, domestic volumes were down 10.2 percent at 88,368 CBM and overall MDF volumes were low by 7.4 percent at 1,15,798 CBM. MDF domestic revenues were ₹ 290.95 crores while exports contributed ₹ 49.22 crores.
Domestic realisations were lower by 1.3 percent at ₹ 32,925 per CBM while export realisations were lower by 25.0 percent at ₹ 17,945 per CBM. Blended MDF realisations were lower by 6.3 percent at ₹ 29,376 per CBM.
Uttarakhand MDF plant operated at 69 percent and Andhra Pradesh MDF plant operated at 76 percent with blended capacity utilisation at 74 percent on capacity of 6,60,000 CBM. Plywood sales had de-growth of 36.5 percent at ₹ 44.99 crores. Plywood sales volumes were lower by 37.3 percent at 1.58 million square metres and the unit operated at 58 percent during the quarter. Plywood Sales realisations were up by 1.1 percent at ₹ 285 per square metre.
In Q1FY24, gross margin fell by 350 bps YOY at 58.1 percent. EBITDA margins were down by 1125 bps at 18.7%. MDF export realisations were lower by 25 percent due to reduction in the international prices.
Greenpanel Industries Limited shares
The shares of Greenpanel Industries on Friday at 3:30 pm IST were at ₹344.80, down by 2.45 percent.
