Century Plyboards (532548) Q2 24/25 earnings summary

Executive summary

• Achieved all-time highest quarterly and half-yearly revenue at both standalone and consolidated levels, with consolidated revenue up 18.7% year-over-year and 17.7% sequentially.

• Standalone revenue grew 10.6% year-over-year; profit after tax increased sequentially, though year-over-year PAT declined.

• Unaudited financial results for the quarter and half year ended 30th September 2024 were approved, with no material misstatements reported by auditors.

• Plywood division led growth with strong volume and margin improvement, while other segments faced margin pressures due to input costs and competition.

• Notable one-time items included impairment losses in subsidiaries and a settlement of entry tax liability.

Financial highlights

• Standalone revenue for H1 FY25 was ₹2,01,541.88 lakhs, up from ₹1,82,326.31 lakhs year-over-year; consolidated revenue for H1 FY25 was ₹2,18,899.90 lakhs, up from ₹1,88,783.59 lakhs.

• EBITDA margin for Q2 was 12.6%, down from 13.5% in Q1; gross profit margin stood at 31.5% for H1.

• PAT for Q2 was ₹75.7 crore, up 2.4% sequentially but down 17.6% year-over-year.

• Forex loss for the quarter was approximately INR 1 crore standalone and INR 13 crore consolidated.

• Basic and diluted EPS (standalone) for H1 FY25 was ₹6.73, down from ₹7.84 in H1 FY24.

Outlook and guidance

• H2 FY25 guidance: 12%+ sales growth and EBITDA margins between 12%-14% for the group; plywood targets 12% sales growth, laminates 10%, MDF over 40%, and particle board flat.

• MDF segment expected to deliver over 40% value growth with margin improvement; Andhra unit to be EBITDA positive by Q3.

• Laminate segment targets 10%+ growth in H2 with improved realizations and capacity utilization.

• CapEx cycle to conclude by Q4, with deleveraging and improved cash flows expected from next year.

• Continued investment in capacity expansion and international subsidiaries, including a new entity in the Netherlands.