Greenpanel Industries (GREENPANEL) Q2 24/25 earnings summary

Executive summary

• Domestic MDF volumes declined 4% year-on-year, with EBITDA margin at 13.1% impacted by competitive pricing and increased industry capacity.

• Plywood volumes rose 21% quarter-on-quarter but fell 10.4% year-on-year; EBITDA margin at 2.5% affected by low volumes and higher raw material costs.

• Export volumes dropped as the company limited sales to customers unwilling to absorb higher freight and wood costs; export realizations rose 24.4% year-on-year.

• Cash generated during Q2 FY25 was ₹63 crores; net debt stood at ₹97 crores as of September 30, 2024, including ₹228 crores for expansion.

• Unaudited financial results for the quarter and half year ended September 30, 2024, were reviewed and approved by the Board; statutory auditors found no material misstatements.

Financial highlights

• Revenue from operations for Q2 FY25 was ₹33,687.45 lakhs, down from ₹39,867.73 lakhs in Q2 FY24.

• Net profit for Q2 FY25 stood at ₹1,850.40 lakhs, compared to ₹4,075.88 lakhs in Q2 FY24.

• Q2 overall billings were INR 32.67 crores, down from INR 97.70 crores in the previous quarter.

• Gross margin for Q2 FY25 was 48.6% (down from 55.5% YoY); EBITDA margin 11.9% (down from 18.4% YoY); net margin 5.6% (down from 10.3% YoY).

• EPS for Q2 FY25 was ₹1.51, down from ₹3.32 in Q2 FY24.

Outlook and guidance

• Targeting 15–18% year-on-year domestic volume growth in H2 FY25, aiming for 10% full-year domestic growth.

• Export volumes expected at 6,000–8,000 cubic meters per month in H2, subject to freight and wood price trends.

• Margin improvement of 150–200 basis points expected in H2 versus Q2; further 150–200 basis points improvement targeted for next year.

• New MDF plant to start commercial production by end of Q3 FY25, with 50% utilization targeted in FY26 and 75–80% in FY27.

• Management remains hopeful of recovering outstanding government subsidies related to the Chittoor plant, which have not yet been recognized.