Greenply posts healthy topline growth

News: Greenply Industries reported robust growth (Q2FY21 had ~ 22% YoY decline in topline). The topline at Rs.421.1 crore, was up by 23.7% YoY driven by 20.3% growth in Plywood revenues at Rs.373 crore with volumes up 11.4%). The EBITDA margins expanded by 308 bps YoY to 10.2%, owing to higher input prices. The PAT came in at Rs. 29.8 crore, up 19% YoY, aided by higher other income and lower interest expenses.

Views: Greenply continues to lag behind Century in plywood segment where the latter recorded 15% volumes growth despite higher base. Furthermore, foray into MDF, wherein risk of supply glut is likely in FY23/24 onwards, needs to be monitored.

Impact: Neutral