Conference Call with Greenlam Industries Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.
Furniture-Furnishing-Paints company Greenlam Industries announced Q3FY24 & 9MFY24 results: Consolidated Q3FY24: - Revenue: Greenlam Industries reported net revenues of Rs 563.4 crore for the quarter ended December 31, 2023, marking an 11.9% increase from the same period in the previous year. - EBIDTA: The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBIDTA) for the quarter stood at Rs 71.1 crore, registering a significant rise of 29.8% year-over-year (YoY). - Net Profit: However, net profit experienced an 11.8% decline YoY, amounting to Rs 25.3 crore. - Basic EPS: Earnings Per Share (EPS) for the quarter was Rs 1.98, compared to Rs 2.30 in the corresponding quarter of the previous year. Consolidated 9MFY24: - Revenue: For the nine months ended December 31, 2023, net revenues reached Rs 1682.3 crore, a 12.7% increase YoY. - EBIDTA: The EBIDTA for the nine months grew by 32.9% to Rs 211.1 crore. - Net Profit: Net profit ascended by 17.8% to Rs 97.2 crore for the nine months under review. - Basic EPS: Basic EPS of Rs 7.62 was reported for the nine-month period. Business Segment Growth: - Laminate Business: In terms of value, the laminate business grew by 8.8% in the quarter and 10.5% over the nine months. Volume growth for both periods was also positive at 9.1% and 11.0%, respectively. Operational Highpoints: - Gross Margin: Gross margins improved by 650 basis points for the quarter, reaching 54.8%. - Working Capital: Working capital days increased to 72 days, which was a 4-day rise YoY. - Net Debt: As of December 31, 2023, the company's net debt amount stood at Rs 847.1 crore. Speaking about the results Saurabh Mittal, Managing Director and Chief Executive Officer, Greenlam Industries said, "For the third quarter of FY 2023-2024 our overall revenue growth was 11.9% on a YoY basis. This is contributed by growth in laminates, decorative veneer & wooden flooring product categories. The laminate business continues to grow both in value and volume terms. For the quarter on a YoY basis, value growth in the laminate business is 12.8% and 4.8% for domestic and international markets respectively and volume growth in the laminate business is 11.2% and 6.0% for domestic and international markets respectively. The above growth has been achieved despite challenging market situations across geographies and recent geopolitical issues at the Red Sea which have led to delays in the availability of containers, longer shipment time, and significant increases in freight cost. The overall un-booked export revenue due to shipment issues is approx. Rs 20 crore, which has led to higher inventory as well. For the quarter, revenues for veneer and allied businesses grew by 7.4% on a YoY basis, and the plywood business grew by 6.9% on a QoQ basis. The gross margin for the quarter improved by 650 bps on a YoY basis and stood at 54.8% largely on account of stable raw material cost and a favourable product mix. The EBIDTA margin, after accounting for initial losses from the plywood business and Naidupeta laminate unit, for the quarter improved by 170 bps on a YoY basis and stood at 12.6%. Further, our engineered flooring business has turned EBIDTA positive during the quarter. Our net working capital days stood at 72 days, an increase of 4 days as compared to the same quarter last year, primarily on account of inventory built-up for our Plywood and Naidupeta laminate unit and goods stuck at ports. Our net debt as of Dec 31, 2023, stood at Rs 847.1 crore." Result PDF