Furniture-Furnishing-Paints company Greenlam Industries announced Q1FY25 results:
- Net revenues reported at Rs 604.7 crore, growth of 17.4% on YoY basis
- Overall laminate business grew by 13.2% in value terms and 11.9% in volume terms on YoY basis
- EBITDA was reported flat at Rs 64.0 crore, marginal de-growth of 0.6% on YoY basis
- Net Profit reported at Rs 19.9 crore, de-growth of 39.7% on YoY basis
- Working capital stood at 65 days improvement of 7 days on YoY basis
Speaking about the results Saurabh Mittal, Managing Director and Chief Executive Officer, Greenlam Industries said, “The first quarter of 2023-24 witnessed continued momentum with revenue growth of 17.4% on YoY basis. The quarter saw highest international revenues for laminate business of Rs 285.6 crore which grew by 22.1% in value terms and 13.8% in volume terms on YoY basis. However, the international revenue growth was impacted due delayed availability of containers, longer shipment time and increase in freight costs on both imports and exports. The container availability issue has resulted in 1.5 lakhs sheets (~Rs 15.0 crore) worth of goods lying for dispatch at plants. The overall domestic revenues also grew by 11.8% with growth across business segments except for decorative veneers. Even domestic growth was impacted in the quarter by excessive harsh summer season which impacted workers’ availability at the site and disruptions due to general elections which took place during the quarter.
Our gross margins for the quarter were marginally lower and stood at 52.0%. for the quarter. For the quarter, raw material costs excluding freight costs are broadly stable except for timber costs which continues to be elevated. Our EBITDA margins declined to 10.6% in the quarter due to higher operating expenses. Our plywood unit in Tindivanam and laminate unit in Naidupeta, which started operations in FY24, are progressing well. The laminate unit in Naidupeta continues to be EBITDA positive and the plywood unit in Tindivanam is witnessing growth and reduction in losses. Our net working capital days stood at 65 days for Q1FY25 as compared to 72 days for Q1FY24 which shows our disciplined commercial practices. Our net debt stood at Rs 921.8 crore which includes particle board project debt of ~Rs 465.0 crore.
Our particle board project in Naidupeta, Andhra Pradesh, is now expected to start commercial production in Q3FY25. Greenlam remains committed to growth, efficient resource use, and overcoming challenges to achieve our goals.
We continue to be committed to redefining interior spaces with superior quality products and innovation in technology to bring the latest trends in home décor for our customers.”