Greenlam Industries (GREENLAM) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated net revenue reached ₹680.81 crore, up 12.8% year-over-year, with record laminate production and sales volumes, and strong domestic and international performance.

• Net profit for Q2 FY25 was ₹34.62 crore, down 11.7% year-over-year due to higher depreciation and interest costs from new projects.

• Highest ever capacity utilization in laminates at 92% in Q2 FY25, up from 83% in Q1 FY25.

• Price increases in domestic laminates and plywood supported improved realizations.

• New Andhra Pradesh plant stabilized, with commercial production of particleboard on track for Q3 FY25.

Financial highlights

• Q2 FY25 EBITDA grew 7.7% year-over-year to ₹81.4 crore, with margin at 12%, down 50 bps year-over-year but up 140 bps sequentially.

• Gross margin for Q2 FY25 improved by 20 bps year-over-year to 51.6%.

• Earnings per share for Q2 FY25 was ₹2.70, compared to ₹3.05 in Q2 FY24.

• H1 FY25 consolidated net revenue grew 14.9% year-over-year to ₹1,285.5 crore.

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

Outlook and guidance

• Management maintains 18%-20% annual growth guidance for FY25.

• Particleboard plant in Andhra Pradesh expected to commence commercial production by end of Q3 FY25, with break-even targeted at 40%-50% utilization in FY26.

• Plywood segment break-even expected next year as Maharashtra market matures.