Greenpanel Industries (GREENPANEL) Q1 24/25 earnings summary

Executive summary

• Domestic MDF volumes grew 10.2% year-over-year, but export volumes declined 21% due to logistics and higher ocean freight rates.

• Plywood segment saw a 23% year-over-year drop in volumes, with negative operating margins.

• EBITDA margins were impacted by a steep increase in wood prices, falling to 12.1% in India.

• Post-tax profits dropped 58% year-over-year to INR 15.71 crore.

• Working capital discipline maintained, with increased wood inventory ahead of monsoon season.

Financial highlights

• Net sales for Q1 FY25 were ₹364.15 crore, down from ₹385.16 crore year-over-year.

• Gross margin fell to 51.0% from 58.1% year-over-year.

• EBITDA margin dropped to 10.9% from 18.7% year-over-year.

• PAT down 58% to INR 15.71 crore; EPS declined to ₹1.28 from ₹3.04 year-over-year.

• Revenue from operations for Q1 FY25 was ₹36,495.12 lakhs, down from ₹38,613.45 lakhs year-over-year.

Outlook and guidance

• MDF margin guidance for FY25 remains at 16.4%, targeting improvement from Q1 levels.

• 15% MDF volume growth guidance for FY25 is maintained.

• Plywood segment expected to achieve 8% volume growth and turn EBITDA positive by year-end.

• New MDF plant to start production in Q3 FY25.

• Focus on expanding distribution and value-added product share in future quarters.