Greenply Industries (GREENPLY) Q1 24/25 earnings summary

Executive summary

• Consolidated Q1 FY25 revenue reached ₹584 crore, up 35.7% year-over-year, with EBITDA growing 101.6% to ₹58 crore and PAT up 468.2% to ₹33.2 crore, aided by an income tax refund and interest.

• Gross margin improved by 330 bps year-over-year to 41.3% in Q1 FY25.

• Net debt reduced to ₹431 crore from ₹502 crore sequentially, with net D/E ratio improving to 0.58.

• Standalone and consolidated financial results for the quarter ended 30 June 2024 were reviewed and approved, with unmodified limited review reports from auditors.

Financial highlights

• Plywood business volume grew 8.6% YoY, value up 7.1% YoY; adjusted core EBITDA margin declined to 7.9% from 8.7% due to higher raw material costs.

• MDF business revenue was ₹132 crore, flat sequentially, with volume at 42,734 CBM and realization up 10.6% to ₹3,817/CBM.

• MDF EBITDA margin improved to 16.6% from 14.1% in the previous quarter.

• Working capital days improved to 38 from 40 sequentially; net worth increased to ₹743 crore from ₹710 crore.

• Consolidated net profit for Q1 FY25 was ₹3,319.51 lakhs, compared to ₹584.18 lakhs in Q1 FY24.

Outlook and guidance

• MDF margin guidance for FY25 is 16%-17%, with potential for improvement if industry pricing rises.

• MDF sales expected to grow over 50% year-over-year; plywood volume growth guided at 8%-10% with flattish margins.

• Price increases in plywood of 1.5%-2% already taken, with further hikes possible.

• Focus on ESG, product portfolio expansion, automation, and manufacturing base diversification to leverage emerging opportunities.

• Year-end net debt guidance maintained at around ₹450 crore.