Forest products company Green Panel Industries announced Q4FY23 & FY23 results:
- Net sales during Q4FY23 was Rs 440.58 crore compared to Rs 460.26 crore in Q4FY22
- In Q4FY23 gross margin fell by 662 bps YoY at 53.7%
- EBITDA margins were down by 1,151 bps at 19.2%
- MDF export realisations were lower by 10% YoY due to price cuts
- EBITDA stood at Rs 84.75 crore
- PAT was lower by 14% due to a fall in EBITDA and reflected gains due to deferred tax write-off aggregating to Rs 26.74 crore
- Net sales grew by 12.2% at Rs 1,778.55 crore
- Gross margin in value terms was up by 12.9% at Rs 1,032.76 crore
- EBITDA margins were lower by 320 bps at 24.5%, in value terms, fell by 0.8% at Rs 435.87 crore
- PAT was up by 7% at Rs 256.51 crore
- Gross debt to equity ratio stands at 0.16 as on March 31, 2023, compared to 0.30 on March 31, 2022. Net Debt as on March 31, 2023, stood at negative Rs 187 crore compared to positive Rs 144 crore as on March 31, 2022.
Speaking about the financial results, Shobhan Mittal, Managing Director, and Chief Executive Officer, Greenpanel Industries Limited said, “MDF export volumes rose by 89% while domestic volumes fell by 7%. Overall MDF volumes grew by 10% YoY in Q4FY23 vs Q4FY22. MDF EBITDA margins at 21.9% for Q4FY23 were impacted by a) higher export volumes, b) steep increase in raw material cost, c) higher brand spends, and d) price cuts taken in exports.
We maintained working capital discipline in a challenging quarter with net working capital at 17 days of turnover.
Plywood volumes fell by 17.1% YoY in Q4FY23; operating margins at 0.4% were impacted by lower volumes and an increase in raw material costs.
Consolidated operating margins for Q4FY23 stood at 19.2%. Working capital investment was reduced by 6 days QoQ and increased by 1 day YoY to 17 days as on 31 March 2023. Cash generated was Rs 53 crore during Q4FY23. Net debt reduced to negative Rs 187 crore as on March 31, 2023.
Increasing the Greenpanel Brand Value, by associating with Delhi Capitals, an IPL Franchise, as the principal sponsor for 3 years.
Widening distribution reach and increasing domestic volumes and proportion of value-added products will be our major focus areas in future quarters."