Century Plyboards reported better-than-expected profitability for Q1FY19 mainly on profit beat from Plywood segment. Century's net sales at Rs54 bn was slightly below our forecast. Nevertheless, EBITDA at Rs871 mn was 15.8% above our forecast. The company changed the method of charging depreciation to Straight Line (WDV earlier). This led to sharp fall in depreciation expense for the quarter to Rs108mn (-17.9% YoY, -60.9% QoQ) leading to net profit beating our forecast by 61.5%. Century guides for 20-25% top-line growth with EBITDA margin of 19.0% during FY19. We believe this is achievable with steady ramp-up of MDF plant during FY19. We raise...