Key highlights

• The company posted excellent set of numbers in Q4FY13. Net sales posted a growth of 18% Y-o-Y to Rs 540.69 crore, while net profit increased 116% Y-o-Y to Rs 35.12 crore.

• Export sales for the quarter ended March 31, 2013 grew by 28.42% Y-o-Y to Rs 65.29 crores in Q4FY13 and it contributed 12.08% of the net revenue during the quarter.

• The EBIDTA Margin for the quarter improved 283 bps to 12.49% in Q4FY13 as compared to 9.66% in Q4FY12.

• The absolute EBIDTA for the quarter rose 52.48% Y-o-Y to Rs 67.52 crores in Q4FY13.

• On segmental basis, sale of Plywood & allied products grew by 21.6% and stood at about 49% of total revenue, while the Laminates & allied products sales rose 11.6%, thus contributing 33% to the total revenue of the company during the quarter. The medium density fibre boards (MDF) segment revenue rose 20.5% Y-o-Y to Rs 98.92 crore in Q4FY13 and it contributed 18% of the total revenue.

• The sales value of Plywood & allied products and Laminates & allied products during the quarter stood at Rs 264.21 crore and Rs 177.56 crore respectively.

• In terms of volumes the plywood & allied products witnessed 0.69% increase in production to 8.79 mn square meters as the average capacity utilizations stood at 109%.

• The sales volumes registered a growth of 8.24% during the quarter, Gujarat Unit volumes increased by 26% and outsourcing volumes by 41%.

• The average realization of plywood was Rs 229 as compared to Rs 202 in the corresponding quarter of last year.

• The segment EBIDTA registered an increase of 788 bps to 13.14% from 5.26% in the corresponding quarter of last year primarily due to improvements in product mix and additional refunds of excise duty (for earlier years) relating to Nagaland Unit.

• The Laminates & Allied Products production rose 11.16% to 2.59 mn sheets in Q4FY13 as compared to 2.33 mn sheets in Q4FY12 as the average capacity utilization increased to 103% from 93% in Q4FY12.

• The average realizations of laminate stood at Rs 563 in Q4FY13 as compared to Rs 564 in Q4FY12.

• The average realizations of decorative veneers fell to Rs 640 as compared to Rs 683 in Q4FY12.

• The EBIDTA margin from the segment declined 388 bps to 7.60% from 11.48% in the corresponding quarter of last year.

• The MDF production rose 2.25% to 40975 Cu meter in Q4FY13 as compared to 40075 Cu meter in Q4FY12, while the sales volumes increased by 6.15% Y-o-Y to 39926 Cu meters.

• The average capacity utilization of the company's MDF facilities improved to 91% in Q4FY13 as compared to 89% in Q4FY12.

• The average realizations of MDF improved 13.52% to Rs 24774 per Cu meter.

• The EBIDTA margin of the MDF division improved 172 bps to 19.51% in Q4FY13.

• The net sales of the company for the full year (FY13) posted a growth of 21.6% to Rs 1997.69 crores, while the net profit during the year increased 114% to Rs 114.31 crores.

• Exports contributed 12.8% of the total sales during FY13 and it rose 39.14% to Rs 255.62 crores.

• The EBIDTA during FY13 increased 42.6% to Rs 261.45 crores.

• On segmental basis for FY13, sale of Plywood & allied products grew by 15.3% and contributed 47% of total revenue, while the Laminates & allied products sales rose 17.2%, thus contributing 34% to the total revenue of the company during the quarter. The medium density fibre boards (MDF) segment revenue rose 53.53% to Rs 374.18 crore in FY13 as it contributed 19% of the total revenue.

• The sales value of Plywood & allied products and Laminates & allied products during the year stood at Rs 940.17 crore and Rs 683.34 crore respectively.

• The volumes for the full year were impressive too, as the Plywood & Allied Products segment witnessed 6.66% increase in production to 34.28 mn square meters.

• The division sales volume rose 9.26% on the back of increase of 25.18% in Gujarat unit.

• The average realization of Plywood rose to Rs 215 in FY13 as compared to Rs 203 in FY12.

• EBIDTA margin of plywood & allied division improved 74 bps to 10.56% from 9.82% in FY12.

• Laminates & Allied Products division's production rose 4.54% to 10.37 mn sheets in FY13 as the average capacity utilizations of the division improved to 104% compared to 99% in FY12.

• Sales volumes of laminates & allied products division rose 7.37% to 9.64 mn sheets, while its average realization rose 13.65% to Rs 566 from Rs 498 in FY12.

• The production of decorative veneers registered a decline of 9.42% to 1.25 mn square meters.

• The average capacity utilization of decorative veneers stood at 30% in FY 13 as compared to 33% in FY 12, while the average realizations of decorative veneers improved by 5.04% to Rs 708.

• The MDF production rose 35.12% to 157948 Cu meters in FY13, while sales rose 31.56% to 153426 Cu meters. The average realization rose 16.69% to Rs 24386 per Cu meter.

• Company's consolidated net sales rose 20% to Rs 2044.06 crores in FY13, while the net profit posted a growth of 111% to Rs 119.80 crores.

• The Singapore subsidiary of the company posted a turnover of Rs 151.40 crores in FY13 as compared to Rs 135.68 crores in FY 12, while it posted a profit of Rs 1.82 crores in FY13 as compared to Rs 2.30 crores in FY 12. The US subsidiary recorded a turnover of Rs 46.39 crores in FY13 as compared to Rs 33.34 crores in FY 12. The subsidiary posted profit of Rs 3.87 crores in FY13 as compared to Rs 0.98 crores in FY12.

• The Debt equity ratio of the company in FY13 was 1.38 as compared to 1.85 in FY12, while the working capital cycle reduced to 69 days in FY13 as compared to 90 days in FY12.

• The demand situation continues to remain challenging across all the company's product segments, but the company is confident of posting a top-line growth of 18-20% in FY14. The EBIDTA margin is expected to be sustained at the current levels.

• The company would be paying off Rs 104 crore worth of debt in FY14. The current average cost of debt of the company 10% -10.2%

• The company's current market share in the plywood segment is 40%, while it enjoys 30% market share in the laminates and MDF segments.

• The ROCE of the company in FY13 was 19%, which is expected to improve to 22-24% going ahead.

• The company plans to spend Rs 115 – 125 crore for its capital expenditure in FY14 and FY15. Half of this amount would be spend in the current year.

• Rs 15 - Rs 20 crore would be spend to set up manufacturing unit of value added products in the company's existing MDF plant at Pantnagar, Uttarkhand. The company would be setting up lamination capacity and introduction of laminated flooring and UV coated panels. The civil construction work has been completed and the plant would be ready by the end of this year.

• Rs 18 – Rs 20 crore would be spend in the plywood plant in Myanmar, while Rs 30 – RS 35 crore would be spent as normal maintenance capital expenditure.

• The company also plans to commence the Laminate unit in Rajasthan in the current year.

• The company has already acquired the required land for MDF manufacturing unit in Andhra Pradesh, while various statutory approvals for the project would take at least 6 – 8 months.

• The company is naturally hedged from currency volatility.