Greenply Industries Ltd Research ReportCo.Update

Greenply Industries’ (GIL) Q3FY21 performance was again about balance sheet than P&L as it focussed on credit correction while revenues were muted. The company has reduced its consolidated net debt by ~| 113 crore in Q3FY21 to | 82 crore driven by strong receivables collection and moving to stricter working capital control (at 60 days vs. 66 days in Q2 and 80 days in Q3FY20). GIL’s Q3 consolidated topline at | 340 crore was down 1.6% YoY owing to 3% YoY decline in plywood revenues at | 310 crore (volumes, down 2.4%). EBITDA margins expanded 77 bps to 12.3%, owing to cost rationalisation. PAT at | 25 crore was up 17% YoY, led by robust margins and lower interest costs on account of debt reduction.