Business Update:
β’ Q4 was the best quarter for century in history of co.
β’ Laminate has shown very good performance with increasing margins.
β’ Q1 FY22 has been affected due to covid, however things have improved now.
β’ Strengthen the balance sheet and net debt near to 0.
β’ Q4 was the best quarter for century in history of co.
β’ Laminate has shown very good performance with increasing margins.
β’ Q1 FY22 has been affected due to covid, however things have improved now.
β’ Strengthen the balance sheet and net debt near to 0.
Capacity Utilization & CAPEX:
β’ Plywood capacity has been ramped up and now is 100%+. Capacity would be increased here, with CAPEX spent.
β’ Laminates: Current utilization is low. Hence capex can be in next year. Laminates can add another 15-16%
Conti.
β’ Plywood capacity has been ramped up and now is 100%+. Capacity would be increased here, with CAPEX spent.
β’ Laminates: Current utilization is low. Hence capex can be in next year. Laminates can add another 15-16%
Conti.
β’ MDF- Co. is already doing capex, and capacity is added here.
β’ Particle Board: From Q2 additional capcaity can be seen.
β’ New Facility will add 30% in Plywood while rest in other segment.
β’ Particle Board: From Q2 additional capcaity can be seen.
β’ New Facility will add 30% in Plywood while rest in other segment.
CAPEX Update:
β’ Hoshiarpur CAPEX on line and is expected to start this year only.
β’ South Plan Delay is bit increased and land acquisition is taking time and commercial production is expected to start next H2 next year.
β’ 700 cr next 2 year.
β’ Capex of Andhra is ~450cr.
β’ Hoshiarpur CAPEX on line and is expected to start this year only.
β’ South Plan Delay is bit increased and land acquisition is taking time and commercial production is expected to start next H2 next year.
β’ 700 cr next 2 year.
β’ Capex of Andhra is ~450cr.
Laminates:
β’ Overall segment got impacted and unorganized sector, were major sufferer.
β’ Raw Material price has been at the All time high.
β’ Looking for green field capex but next year in Q3 or Q4.
β’ Overall segment got impacted and unorganized sector, were major sufferer.
β’ Raw Material price has been at the All time high.
β’ Looking for green field capex but next year in Q3 or Q4.
Plywood:
β’ Brand building activity leading to growth, and is increasing in market share
β’ Unorganized Player took bigger hit, due to working capital issue, raw material procurement, helping organised player
β’ Adding capacity in South, Karnal. This will increase 25% of capacity
β’ Brand building activity leading to growth, and is increasing in market share
β’ Unorganized Player took bigger hit, due to working capital issue, raw material procurement, helping organised player
β’ Adding capacity in South, Karnal. This will increase 25% of capacity
β’ For long term 14-15% EBIT margins is sustainable for the segment. This is majorly because of operating leverage of capacity addition.
β’ Margin may get impact this year, due to wave 2 impact in Q1, however long terms margins to be 14-15%.
β’ Margin may get impact this year, due to wave 2 impact in Q1, however long terms margins to be 14-15%.
MDF:
β’ Plant was operational in entire pandemic, and co, already has stock left.
β’ Additional capacity may take time as demand is also sluggish. But till FY 2024 with CAPEX, this segment can show good result.
β’ Plant was operational in entire pandemic, and co, already has stock left.
β’ Additional capacity may take time as demand is also sluggish. But till FY 2024 with CAPEX, this segment can show good result.
β’ Current capacity is 1.5 Million cubic meter. With capacity additional it would be 2 Million Cubic Meter. While China product is around 60 Million Cubic Meter
Particle Board:
β’ Increase the csot of Melamine has been impacted to a lot. Sharp increase in cost of Melamine has impacted the margins, and Particle Board revenue share in MDF segment is ~60%.
β’ Increase the csot of Melamine has been impacted to a lot. Sharp increase in cost of Melamine has impacted the margins, and Particle Board revenue share in MDF segment is ~60%.
Margin:
β’ RM cost has been increased a bit, however these cost are adjustable.
β’ Supply is not increasing in market and increase in price is expected to be transfer to customer.
β’ Hence margin are expected to be in the same range last year.
β’ Travel, employee cost is reduced.
β’ RM cost has been increased a bit, however these cost are adjustable.
β’ Supply is not increasing in market and increase in price is expected to be transfer to customer.
β’ Hence margin are expected to be in the same range last year.
β’ Travel, employee cost is reduced.
Import:
β’ Import is very low currently in India, and co. expect import ban to be imposed by government, however without that to domestic product demand is increasing.
β’ Import is very low currently in India, and co. expect import ban to be imposed by government, however without that to domestic product demand is increasing.
Future Focus:
β’ Plywood- 10-15% growth
β’ Laminates- Trying for 15%+ growth
β’ MDF- Target to ~3x the revenue in next 2-3 years.
Price Hike: There has been minimum price hike this quarter around 2-3%
β’ Plywood- 10-15% growth
β’ Laminates- Trying for 15%+ growth
β’ MDF- Target to ~3x the revenue in next 2-3 years.
Price Hike: There has been minimum price hike this quarter around 2-3%
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