Greenlam Industries (GREENLAM) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue grew 12.8% year-over-year to ₹680.81 crore, driven by record laminate production and sales volumes, with annualized capacity utilization at 92%.

• Domestic business grew 15.8% YoY, while international markets also contributed to growth despite global shipping disruptions.

• Net profit for Q2 FY25 declined 11.7% YoY to ₹34.4 crore due to higher depreciation and interest from new projects.

• Veneer and allied segment turned EBITDA positive; flooring and doors segments showed robust growth.

• Plywood business expanded into Maharashtra, with price increases aiding realization, but segment continued to report losses before tax and interest.

Financial highlights

• Q2 FY25 gross margin rose 20 bps YoY to 51.6%, with consolidated EBITDA up 7.7% YoY to ₹81.4 crore, but margin declined 50 bps to 12%.

• PAT for Q2 FY25 was ₹34.4 crore, down 11.7% YoY; EPS at ₹2.70, compared to ₹3.05 in Q2 FY24.

• H1 FY25 consolidated revenue up 14.9% YoY to ₹1,285.5 crore; gross margin flat at 51.8%.

• Net working capital days improved to 59 in Q2 FY25 from 60 in Q2 FY24.

• Total assets as of September 30, 2024, were ₹2,970.54 crore, with total equity attributable to owners at ₹1,112.75 crore.

Outlook and guidance

• The greenfield particleboard project in Andhra Pradesh is expected to commence commercial production by the end of Q3 FY25.

• Overall revenue growth guidance maintained at 18%-20% for FY25.

• Plywood segment break-even expected next year as channel expansion continues.

• Container availability and freight costs are stabilizing, which may ease logistics pressures.