Conference Call with Greenlam Industries Management and Analysts on Q2FY22 Performance and Outlook. Listen to the full earnings transcript.
Highlights Net revenues reported at Rs. 454.0 crore, growth of 56.9% on YoY basis Laminate business revenues grew by 60.4% in value terms and 46.7% in volume terms on YoY basis EBDITA reported at Rs. 48.5 crore, growth of 13.3% on YoY basis Net Profit reported of Rs. 20.7 crore, growth of 11.6% on YoY basis Net Sales reported at Rs. 790.2 crore, growth of 75.7% on YoY basis Laminate business revenues grew by 79.2% in value terms and 70.3% in volume terms on YoY basis EBDITA reported at Rs. 84.1 crore, growth of 73.9% on YoY basis Net Profit reported at Rs. 38.0 crore as against Rs. 10.80 crore in H1FY21 Speaking on the financial results Mr. Saurabh Mittal, Managing Director and CEO, Greenlam Industries Ltd. said, “The current quarter witnessed a substantial top line growth across the laminate and decorative veneer category. The value growth was backed by volume growth of 46.7% in laminates and 71.5% in decorative veneer segment which is resulting in expansion of market share and shift of business from unorganized to organized. The overall business saw a comprehensive sequential growth in revenues, EBDITA and PAT of 35.1%, 20.0% and 19.4% respectively. However steep inflationary increase in raw material costs and supply side disruptions along with time lag in raising prices has resulted in lower gross margins. Though we have passed on raw material costs to the market, however the same has been inadequate considering the rising costs of raw material. We may have to take further price hike going forward if raw material prices continue to remain elevated. Despite this continuous pressure on the raw material costs in the current quarter, we were able to maintain control on our balance sheet with net working capital cycle of 68 days and reduction in net debt by Rs. 49.0 crore during the quarter. In pursuit of serving our customers with only the best, we realized the demand for low-maintenance, high quality and long-lasting home décor is growing and recently launched a TVC showcasing Greenlam’s HD Gloss and Customized Digital Laminates that serve as a one-stop solution to all furnishing needs giving customers the opportunity to design their spaces with creativity and flexibility. We continue to be devoted to redefining and reimagining interior and exterior spaces with superior quality products coupled with panache and elegance, to create something that never goes out of style and bring cutting edge trends in surfacing décor to our customers.” Result PDF