- 21 Jul 2022
- ICICIdirect Research
HEALTHY REVENUES GROWTH, MARGINS TAPER OFF SEQUENTIALLY
CENTURYPLY - 799 Change: 13.45 (1.71 %)News: Century Plyboard’s (CPIL) Q1FY23 performance was highlighted by robust revenues growth across segments but tapering of margins. The topline was up 96.4% YoY to Rs 881.5 crore on a benign base (3 year CAGR of 15.4%). MDF/Plywood/Laminate revenues grew 70.9%/113.3%/86.1% YoY to Rs 155.6/474.7/163.6 crore, respectively with 3 year CAGR being 19.2%/14.6%/15.1%, respectively. EBITDA margin, was up by 285 bps YoY (but down 150 bps QoQ) to 16.5% with sequential weakness owing to 150 bps QoQ decline in gross margins to 47.2%, owing to lag in price hike absorption. Overall, Reported PAT was up 184.7% YoY to Rs 96.5 crore.
Views: CPIL’s results are strong with healthy growth trajectory across segment. The company expects the margins to increase going ahead with full absorption of price hikes taken in Q1 and expected operating leverage. We are also impressed by the strength in balance sheet wherein it continues to be a net cash company and is funding expansion largely through internal accruals.
Impact: Positive