Highlights of the Concall

• The company is well on track and consistently booking growth in both topline and bottomline.Net revenue increased 26% to Rs 385.83 crore in Q3FY15. EBITDA margin increased to 19.1% from 12.2% corresponding previous quarter. PBIDT was up 99% to Rs 73.89 crore. PBT rose 131% to Rs 47.81 crore. PAT rose 110% to Rs 41.37 crore.

• For the 9MFY15, net revenue increased 23% to Rs 1155.59 crore. EBITDA margin increased to 16.2% from 10.3% corresponding previous period. PBIDT was up 93% to Rs 187.69 crore. PBT rose 126% to Rs 120.47 crore. PATescalated by 174% to Rs 102.85 crore.

• Q3FY15 segmental performances of thecompany-income from plywood segment stood at Rs.280.98crore against Rs 233.46crore, showing a growth of about 20%.the total net revenue from laminate segmentincreased from Rs.52.52crore to Rs 71.57crore showing a growth of nearabout 36%. the net income from container Freighting Station increased from Rs12.52crore to Rs 18.58crore, showing a growth ofabout 48%.

• 9MFY15 segmental performances- the company revenue from plywood segment rose 22% to Rs.855.28crore(contributes 74% of total revenue), laminate segmentrevenue increased22% to Rs.213.08 crore (contributes 19% of total revenue), and container Freighting Station income increased 25% to Rs53.37crore(contributes 5% of total revenue).

• The company expects new government encouraging policies toward development will create huge opportunities and growth and demand in coming months and years. Thus, the company plans to augment capacities and increase infrastructure to meet demand requirement in future. The company started one unit in Myanmar and also started one unit in Laos, which likely to commission by March 2015. The company also exploring the possibility of acquiring timber based unit in Africa, Indonesia, Malaysia and some African based companies.

• The company plans to shift Kolkata pre-laminating plants to Chennai. The company also plan to construct MDF particle board plant of 180 cubic metre capacity per day in Chennai which will take care of both the pre-laminating units, a record integration of existing pre-laminating units, and forward integration of wood waste generating in pre-laminating plant to utilize in particle board plant. The company also sourced lot of wood waste from saw mills in Chennai at reasonable price which likely add contribution to both topline and the bottomline.

• The company net tax rate stood at 15% for FY 2015 and expects to around 15-18% in FY 2016. The company expects to maintain growth of 25% going forward, with Laminate business contributes around 10-11% of growth and plywood business contributesgrowth around 12-13%.

• The company expects 15% growth both in plywood and Laminatevolume wise and 10% growth in value wise, resulting 25% overall growth target for FY 2016.

• The company expects no increase in product prices in near term due to decline in key raw material prices.

• The board members of the company took decision to distribute one third of net profit with shareholders. Accordingly, the company plans to invest excess surplus fund,after paying dividend and dividend,in existing plants and for acquire other timber based facilities Indonesia, Malaysia, and African countries.