Greenpanel industries Ltd conducted their Q3 FY 22 conference call this week.
“Vision to be the pride of India,panel of India.”
Here are the key takeaways…
“Vision to be the pride of India,panel of India.”
Here are the key takeaways…
Business update
- During the period company has delivered stable performance.
- One of the reasons for the fall in their MDF volumes was due MDF plant being inoperative for half quarter, first because of debottlenecking and then due to breakdown of refiner component.
- During the period company has delivered stable performance.
- One of the reasons for the fall in their MDF volumes was due MDF plant being inoperative for half quarter, first because of debottlenecking and then due to breakdown of refiner component.
- Still it contributed 84% of the top line and has grown its sales by 40%.
- For MDF both their domestic and export realisation were up during the quarter.
- Their Uttarakhand MDF was operated at 56% and AP plant at 101%.
- For MDF both their domestic and export realisation were up during the quarter.
- Their Uttarakhand MDF was operated at 56% and AP plant at 101%.
- The MDF business is at its peak margins and the company plants to stabilise it. They are happy with current levels of pricing and margins.
- And in times to come if there is a cost reduction, it will be with a decent time gap and will benefit customers.
- And in times to come if there is a cost reduction, it will be with a decent time gap and will benefit customers.
- Company took 3 price increases at different points aggregating to 17%.
- Related to the breakdown of their plant the company also expects insurance claim to be around 8-10 crores.
- Related to the breakdown of their plant the company also expects insurance claim to be around 8-10 crores.
- The company also plans to run the plant at 110-115% capacity based on European supply post debottlenecking leading to 20% plus growth.
- Post debottle output may ease up to 700000 cubic meters.
- Post debottle output may ease up to 700000 cubic meters.
- In terms of additional capacity, the company are having technical discussions with the vendors and will give proper decision by financials year.
- On dealer front, company targets to add 800 dealers by Fy23. they have 316 dealers in MDF and have set a target of 400 by march.
- On dealer front, company targets to add 800 dealers by Fy23. they have 316 dealers in MDF and have set a target of 400 by march.
- The company also has kept in mind the brownfield expansion they mentioned in previous calls.
- Most of ground work is done and as soon as the pictures get more clearer they will commission it with 18-24 month time frame.
- Most of ground work is done and as soon as the pictures get more clearer they will commission it with 18-24 month time frame.
- On plywood front, sales grew by 8%. There was a decline in volumes as well for 2% and the processing unit operated at 86% capacity.
- The company is bullish on this vertical and expect it to improve in both margin and volume front in next quarter.
- The company is bullish on this vertical and expect it to improve in both margin and volume front in next quarter.
- The company currently has state of the art manufacturing facilities in Rudrapur and Srikalahasti which is the largest MDF plant in Asia.
- In their product portfolio, Most of the segments witnessed huge retail segment pickup.
- In their product portfolio, Most of the segments witnessed huge retail segment pickup.
- On product sale, about 50% of the sales that company generates today are from its value added products and non of it is imported at all.
- For MDF Vietnam is their major exporter to India, it is also witnessing increase in consumption.
- For MDF Vietnam is their major exporter to India, it is also witnessing increase in consumption.
- But with change in their markets to US and Europe, Indian market will have huge space for us.
- In south, they have a major competition Rushil Decore but as they are 3-3.5% premium to it they plan to take a step ahead.
- In south, they have a major competition Rushil Decore but as they are 3-3.5% premium to it they plan to take a step ahead.
Financials
- There was an increase in the net sales of 34% YoY and gross margins of 220 basis points.
- One of the reasons for this was price hike and passing the increase in cost to retail customers.
- Their EBITDA margins were up 510 basis points.
- There was an increase in the net sales of 34% YoY and gross margins of 220 basis points.
- One of the reasons for this was price hike and passing the increase in cost to retail customers.
- Their EBITDA margins were up 510 basis points.
- This was due to superior focus on superior product mix and cost optimisation.
- On net working capital days, there has been a reduction of 20 days compared to last quarter.
- On net debt front, the company has reduced it by rs 85 crore and it stands currently at 144 crore.
- On net working capital days, there has been a reduction of 20 days compared to last quarter.
- On net debt front, the company has reduced it by rs 85 crore and it stands currently at 144 crore.
- The company targets to become DEBT FREE by September 2022.
- For the export business there overall margins stands between the range of 15-18%.
- For north plant it was lower then south because of plant shut down as mentioned above.
- For the export business there overall margins stands between the range of 15-18%.
- For north plant it was lower then south because of plant shut down as mentioned above.
- South plant did good due to their domestic and export mix. It actually catered the north market as well when the plants were shut.
- In MDF realisation, they also got it with price increase, removal of differences between retail and OEM and product mix.
- In MDF realisation, they also got it with price increase, removal of differences between retail and OEM and product mix.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
