Greenpanel Industries (GREENPANEL) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw flat domestic MDF sales volumes year-on-year with an 11% sequential increase, but export volumes declined 7.6% year-on-year due to selective customer engagement and rising wood prices.

• Plywood volumes dropped 17% year-on-year, and overall net sales fell 7% to INR 358.12 crores compared to the same quarter last year.

• Post-tax profit declined 75% year-on-year to INR 8.5 crores, mainly due to higher wood costs and lower realizations.

• Consolidated operating margins dropped to 5% for the quarter, with EBITDA margin at 5.1% due to increased wood prices.

• Net debt stood at INR 104 crores as of December 31, 2024, including INR 219 crores for expansion projects.

Financial highlights

• Net sales for Q3 FY25 were INR 358.12 crores, down 7% year-on-year.

• MDF sales contributed 91% of revenue, falling 6% to INR 325.93 crores.

• Plywood sales dropped 16.1% to INR 32.19 crores; volumes fell 16.9%.

• Gross margin declined 1,285 bps year-on-year to 43.2%; EBITDA margin fell to 5%.

• EPS declined to INR 0.69 from INR 2.82 year-on-year.

Outlook and guidance

• FY25 domestic MDF volumes are expected to match FY24 levels; FY26 targets 8-10% volume growth on existing capacity and 40-60% utilization for new plants.

• New MDF plant commissioning is expected by end of March (Q4 FY25).

• Plywood segment expects 15-20% volume growth in FY26 as business model changes take effect.

• Management aims to widen distribution, boost domestic volumes, increase value-added product share, and enhance brand value.

• Management remains optimistic about recovering outstanding government subsidies related to the Chittoor plant.