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.
Furniture-Furnishing-Paints company Greenlam Industries announced Q1FY25 results: Net revenues reported at Rs 604.7 crore, growth of 17.4% on YoY basis Overall laminate business grew by 13.2% in value terms and 11.9% in volume terms on YoY basis EBITDA was reported flat at Rs 64.0 crore, marginal de-growth of 0.6% on YoY basis Net Profit reported at Rs 19.9 crore, de-growth of 39.7% on YoY basis Working capital stood at 65 days improvement of 7 days on YoY basis Speaking about the results Saurabh Mittal, Managing Director and Chief Executive Officer, Greenlam Industries said, “The first quarter of 2023-24 witnessed continued momentum with revenue growth of 17.4% on YoY basis. The quarter saw highest international revenues for laminate business of Rs 285.6 crore which grew by 22.1% in value terms and 13.8% in volume terms on YoY basis. However, the international revenue growth was impacted due delayed availability of containers, longer shipment time and increase in freight costs on both imports and exports. The container availability issue has resulted in 1.5 lakhs sheets (~Rs 15.0 crore) worth of goods lying for dispatch at plants. The overall domestic revenues also grew by 11.8% with growth across business segments except for decorative veneers. Even domestic growth was impacted in the quarter by excessive harsh summer season which impacted workers’ availability at the site and disruptions due to general elections which took place during the quarter. Our gross margins for the quarter were marginally lower and stood at 52.0%. for the quarter. For the quarter, raw material costs excluding freight costs are broadly stable except for timber costs which continues to be elevated. Our EBITDA margins declined to 10.6% in the quarter due to higher operating expenses. Our plywood unit in Tindivanam and laminate unit in Naidupeta, which started operations in FY24, are progressing well. The laminate unit in Naidupeta continues to be EBITDA positive and the plywood unit in Tindivanam is witnessing growth and reduction in losses. Our net working capital days stood at 65 days for Q1FY25 as compared to 72 days for Q1FY24 which shows our disciplined commercial practices. Our net debt stood at Rs 921.8 crore which includes particle board project debt of ~Rs 465.0 crore. Our particle board project in Naidupeta, Andhra Pradesh, is now expected to start commercial production in Q3FY25. Greenlam remains committed to growth, efficient resource use, and overcoming challenges to achieve our goals. We continue to be committed to redefining interior spaces with superior quality products and innovation in technology to bring the latest trends in home décor for our customers.” Result PDF
Furniture-Furnishing-Paints company Greenlam Industries announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Net revenues reported at Rs 624.1 crore, growth of 16.9% on YoY basis Laminate business grew by 9.2% in value and 11.9% in volume terms on YoY basis Veneer & Allied business grew by 44.7% in value terms on YoY basis EBIDTA reported at Rs 83.5 crore, growth of 12.8% on YoY basis Net Profit reported at Rs 40.8 crore, de growth of 11.5% on YoY basis Working capital stood at 60 days which is lower by 6 days on YoY basis FY24 Financial Highlights: Net revenues reported at Rs 2,306.3 crore, growth of 13.8% on YoY basis Laminate business grew by 10.1% in value and 11.3% in volume terms on YoY basis Veneer & Allied business grew by 20.2% in value terms on YoY basis EBIDTA reported at Rs 294.7 crore, growth of 26.5% on YoY basis Net Profit reported at Rs 138.0 crore, growth of 7.8% on YoY basis Speaking about the results Saurabh Mittal, Managing Director and Chief Executive Officer, Greenlam Industries Ltd. said, "The fourth quarter exhibited an overall revenue growth of 16.9% on a year-over-year (YoY) basis, driven by growth across all segments: laminates, veneer & allied products, and plywood. The laminate business continues to expand in both value and volume terms, growing at 9.2% and 11.9% respectively on a YoY basis with overall capacity utilization for the quarter at 85%. For the quarter, revenues for the veneer and allied business grew by 44.7%, while the plywood business saw a QoQ growth of 64.6%. Our international revenues for the year crossed the Rs 1,000 crore mark for the first time, despite challenging geopolitical situations worldwide. Further, continued disturbances in the Red Sea have led to delays in container availability, longer shipment times on certain routes and increased freight costs. On the domestic front, the building material industry is facing demand challenges. Despite these obstacles, for the quarter our domestic and international revenues grew by 25.8% and 7.2% on YoY basis, respectively. Our gross margin stood at 53.0%, an improvement of 420 bps. This improvement was due to stable raw material prices in laminate and veneer & allied business. However, timber costs have seen significant increase which has impacted plywood business. Nevertheless, our pricing discipline and continued focus on value mix have helped us achieve an improvement in gross margins. Our EBITDA margin was 13.4%, which is lower by 50 bps compared to the same period last year. Our plywood unit in Tindivanam and laminate unit in Naidupeta, which started operations in FY24, are progressing well. The laminate unit in Naidupeta has turned EBIDTA positive within six months of operations, and the plywood unit in Tindivanam is witnessing growth and a reduction in losses. Our net working capital days stood at 60 days, an improvement of 12 days over Q3FY24. As of March 31, 2024, our net debt stood at Rs 834.0 crore. Our particle board project in Naidupeta, Andhra Pradesh, is now expected to start commercial production in Q3FY25. Greenlam remains committed to growth, efficient resource use, and overcoming challenges to achieve our goals.” Result PDF