Century Plyboards (532548) Q2 24/25 earnings summary

Executive summary

• Achieved all-time highest quarterly and half-yearly revenue at both standalone and consolidated levels, with consolidated revenue up 18.7% year-over-year and 17.7% sequentially.

• Standalone revenue grew 10.6% year-over-year; profit after tax increased sequentially, though down year-over-year.

• Plywood division led growth with 21.1% year-over-year increase and improved EBITDA margin of 15%.

• Laminate segment saw year-on-year decline but sequential quarter growth; EBITDA margin reduced to 7% due to higher marketing spend.

• MDF segment posted 75% year-over-year volume growth, driven by ramp-up at the Andhra Pradesh facility.

Financial highlights

• Standalone net turnover for H1 FY25 was ₹1,992.79 crore, up 10.2% year-over-year; consolidated revenue for the quarter reached ₹1,183.6 crore.

• EBITDA margin for Q2 was 12.6%, down from 13.5% in Q1; gross profit margin stood at 31.5% for H1.

• Forex loss impacted operating metrics, with consolidated forex loss at INR 13 crore for the quarter.

• PAT for Q2 was ₹75.7 crore, up 2.4% sequentially but down 17.6% year-over-year.

• Employee expenses rose 29% year-over-year due to investments in new facilities.

Outlook and guidance

• H2 FY25 growth targets: Plywood 12% sales growth with 12–14% EBITDA margin, Laminates 10% growth, MDF over 40% growth, Particle Board flat.

• MDF segment expected to be EBITDA positive from Q3, with margin improvement.

• Laminate segment targeted for 10% growth in H2, with improved realizations and capacity utilization.

• CapEx cycle to conclude by Q4, with deleveraging and improved cash flows expected from next year.

• Continued investment in capacity expansion and international subsidiaries, including a new entity in the Netherlands.