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Greenply Industries held conference call to discuss the results for the quarter ended June 2009. Mr. Saurabh Mittal, joint MD and CEO of the company addressed the meet.
Highlights of the Concall
Sales (net of excise duty and VAT/Sales Tax) for the quarter ended June stood at Rs 177.54 crore, grown by 3%
Exports grew by 37% to Rs 18.19 crore and contributed 10% of net revenues.
Plywood and allied products contributed 58% of gross sales and has sales of around Rs 114.98 crore, a flat growth.
Laminated and allied products contributed 42% of gross sales and has a sales of around Rs 82.51 crore, a flat growth.
EBIDTA margin (excluding other income and Gain/loss on foreign exchange fluctuation) for Q1FY10 at 12.30% compared to 13.64% in the corresponding quarter in the previous year.
Net profit has gone up by 57% at Rs 10.92 crore.
The company's debt:equity stood at 1.38. It has gone up because of money borrowed for the expansion.
The company's working capital cycle days has reduced from 40 to 37 days.
There was 7% increase in plywood production to 5.85 million square meters; average capacity utilizations 98% on enhanced capacity of 24 million Square meters. The average realisation of Plywood is Rs 173 in this quarter compared to Rs 174 in the corresponding quarter of last year.
New Laminate unit at Nalagarh (HP) has started commercial production in one of press line out of a total of three press lines from 11th June, 2009 ahead of scheduled commercial production from 1st October, 2009. The Behror unit has reported a decline of 6% in laminate production to 1.42 million sheets, representing a capacity utilisation of 107% in Q1FY10. Laminate has production of 1.34 million sheets in Q4 FY09. Average realization of laminates is reduced by 6.68% and for Decowood it has been improved by 4.74%.
Laminates had price realization of Rs 443 per sheet in Q4 FY09 and Rs 433 per sheet in Q1 FY10.
Laminates had EBIDTA margin of 16.37% in Q1 FY10 vs 14.43% in Q4 FY09. EBIDTA stood at Rs 12.03 crore in Q1 FY10 vs 8.79 in Q4 FY09.
Nalagarh plant is running at 100% capacity.
Laminates of the size of 4x10 feet can be produced from press line one in Nalagarh plant, which has good demand in international market. Second line, which will be install in November, can produced laminates of 5x12 and 6x12 feet which has demand both in domestic and international market. Third Line, which will began in February or March 2010 can produce 4x8 feet long laminates.
Price realization on veneer has improved by 4.74% during the quarter.
The company has made a forex gain of Rs 1.94 crore this year compared to Rs 6.5 crore loss in the same quarter of last year.
The capacity utilization in plywood can be taken to 110% and in laminates to 120%, if the demand increases in the coming quarters.
The company expects to double the export market turnover this year. Last year export was around Rs 60 to 63 crore.
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