Highlights of the Concall

Sales for the quarter ended September 30, 2009 at Rs. 206.85 crore grew by 53% over the corresponding quarter in the previous year and Net profit for Q2FY09 at Rs 11.44 crore is up by 2% while Net sales for HIFY09 at Rs 378.41 crore grew by 50% over Rs. 251.63 crore in HIFY07 and Net profit for HIFY09 at Rs 18.40 crore, down by 9% compared to Rs. 20.26 crore in HIFY07.

Operating profit (PBDIT excluding Other Income and Loss on foreign exchange fluctuation) for the quarter at Rs 25.99 crore was up by 20% as compared to PBDIT of Rs 21.62 crore earned in Q2FY08. Operating profit (PBDIT excluding Other Income and Loss on foreign exchange fluctuation) for HIFY09 at Rs 49.40 crore was up by 29% as compared to PBDIT of Rs 38.42 crore earned in HIFY08.

EBIDTA margin (excluding other income and loss on foreign exchange fluctuation) for Q2FY09 at 12.57% compared to 15.94% in the corresponding quarter in the previous year. The company expects to better margins going forward.

Exports during this quarter grew by 81% to Rs. 18.46 crore from Rs. 10.20 crore in the corresponding quarter in last year. Export has contributed 7.80% of total revenue.

Return on Capital employed stood at 19.59% for H1FY09 compared to 26.10% in H1 FY08.

Debt Equity ratio stood at 1.17 for H1FY09 compared to 1.23 in H1 FY08.

Working capital came down to 33 days in H1FY09 compared to 48 days in H1 FY08.

Plywood production increased 32% to 5.90 million square meters in Q2 FY09 compared to Q2 FY08. Capacity Utilisation of plywood division increased to 113% from 95%. Average realization of plywood has improved by 5% to Rs. 182 from Rs. 173.

Average realization of laminates has improved by 5% and of decowood improved by 23% in Q2 FY09 compared to Q2 FY08.

The Behror unit (Laminate unit) reported a capacity utilisation of 120 per cent in Q2FY09.

Industry wise a robust economy has translated into a 10-12 % annual growth for the Rs 7,000-cr Indian plywood (including decorative veneers) and Rs. 3000 crore laminate industries. The particle board cum MDF industry — estimated at Rs 2,000 crore is growing at around 25%.

Debt as on 30 th September 2008 stands at Rs 193.5 crore.

Greenply has more than 28 branches across the country with a strong network of over 8,900 dealers, distributors, sub-dealers and retailers. Greenply exports its laminate products to more than 25 countries.

The company is setting up a MDF unit at its Uttarakhand Plant at a cost of Rs. 250 crore and a Greenfield laminate unit in Himachal Pradesh at a cost of Rs. 115 crore. Out of total capex of Rs 365 crore Rs 100 crore is estimated for FY’09 out of which Rs 35 crore has already been expended. The capex plan is going as per schedule.