Furniture & Furnishing company Greenlam Industries announced Q3FY25 results Net revenues reported at Rs 602.0 crore, growth of 6.9% on YoY basis. Overall laminate business grew by 4.0% in value terms and 2.6% in volume terms on YoY basis. Engineered Floor, Engineered Doors and Plywood business performed reasonably well during the quarter registering growth of 13.8%, 49.5% and 90.7% respectively on YoY basis. EBITDA reported at Rs 63.5 crore, de-growth of 10.7% on YoY basis. Net Profit reported at Rs 12.5 crore, de-growth of 50.3% on YoY basis. Working capital stood at 67 days, improvement of 5 days on YoY basis. Saurabh Mittal, Managing Director and Chief Executive Officer, Greenlam Industries, said: “The quarter remained subdued, with an overall year-on-year revenue growth of 6.9% taking our net consolidate revenues for the quarter at Rs 602.0 crore. Our international laminate business continued to deliver steady performance in both value and volume terms, reflecting our strong global presence. On the domestic front, the laminate business faced challenges this quarter. However, our Mikasa Floors and Doors businesses showcased growth of 13.8% and 49.5%, respectively, while the plywood segment maintained steady momentum with a YoY growth of 90.7%. Gross margins during the quarter expanded by 20 basis points to 55.0%, driven by stable raw material costs and pricing discipline. However, lower revenue and higher operating expenses during the quarter impacted EBITDA margins, which contracted by 200 basis points to 10.6%, compared to 12.6% in Q3FY24. Net profit declined to Rs 12.5 crore, primarily due to lower operating profits, higher depreciation and interest for new projects and income tax provisions related to prior period. Our working capital stood at 67 days during the quarter We are excited to announce the commencement of commercial production at our state-of-the-art chipboard manufacturing facility in Naidupeta, Andhra Pradesh. Equipped with advanced German technology, this facility positions us as India’s only fully integrated manufacturer offering a unified range of laminates, compacts, restroom cubicles, and prelaminated chipboards, all produced at a single location. With an annual capacity of 2,92,380 cubic meters, the plant has the potential to generate revenues of up to Rs 750 crore at full capacity utilization. The total capital investment for this project stands at approximately Rs 735 crore as of the start of commercial production. The prelaminated chipboard will be marketed under the Greenlam MFC brand”. Result PDF
Furniture, Furnishing & Paints company Greenlam Industries announced H1FY25 & Q2FY25 results Q2FY25 Financial Highlights: Net revenues reported at Rs 680.8 crore, growth of 12.8% on YoY basis. Overall laminate business grew by 12.4% in value terms and 9.4% in volume terms on YoY basis. EBITDA reported at Rs 81.4 crore, growth of 7.7% on YoY basis. Net Profit reported at Rs 34.4 crore, de-growth of 11.7% on YoY basis, due to higher depreciation and interest related to new projects. Working capital stood at 59 days improvement of 1 day on YoY basis. H1FY25 Financial Highlights: Net revenues reported at Rs 1285.5 crore, growth of 14.9% on YoY basis. Overall laminate business grew by 12.8% in value and 10.6% in volume terms on YoY basis. EBITDA reported at Rs 145.4 crore, growth of 3.9% on YoY basis. Net Profit reported at Rs 54.3 crore, de-growth of 24.5% on YoY basis, due to higher depreciation and interest related to new projects. Saurabh Mittal, Managing Director and Chief Executive Officer, Greenlam Industries said: “In the second quarter of this fiscal year, we have achieved year-on-year growth of 12.8%, bringing total revenues to 680.8 crore despite on ground challenging situation. The growth in revenues was led by both domestic and international businesses. The domestic laminate segment performed well with a value growth of 15.5%, driven by volume increase of 13.8%. International laminate revenue grew by 9.6% in value terms, despite challenges such as container shortages, extended shipment times and higher freight costs. The veneer and allied business remained steady, while our doors segment experienced notable year-on-year growth of 39.0%. The plywood business is also progressing well, and we are now expanding our presence in Maharashtra. Gross margins for the quarter improved by 20 bps on YoY basis, standing at 51.6%, with raw material costs generally stable except for elevated timber prices and freight costs. EBITDA margins declined 50 bps on YoY basis which stood at 12.0% for the quarter, due to higher operating expenses. However, EBITDA in absolute terms grew by 7.7% on YoY basis and stood at 81.4 crore. During the quarter, engineered floor business reported operating profit. Net profit for the quarter stood at INR 34.4 crore, lower by 11.7% on YoY basis mainly on higher depreciation and interest costs related to new projects which commenced commercial production in the last financial year. Our net working capital remained steady at 59 days in Q2FY25, reflecting our sound commercial practices, while net debt stood at Rs 991.8 crore. Additionally, our particle board project in Naidupeta, Andhra Pradesh, is progressing well and is slated to commence commercial production in Q3FY25. Greenlam remains committed to sustainable growth, efficient resource management, and addressing industry challenges to meet our goals. We continue to transform spaces with high-quality products and cutting-edge technology, bringing the latest design trends to our customers ” Result PDF
Conference Call with Greenlam Industries Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.