Greenply Industries (GREENPLY) Q1 24/25 earnings summary

Executive summary

• Consolidated revenue for Q1 FY25 reached ₹584 crore, up 35.7% year-over-year, with adjusted core EBITDA up 101.6% to ₹58 crore and PAT up 468.2% to ₹33.2 crore, aided by an income tax refund and interest.

• Gross margin improved by 330 bps year-over-year to 41.3% in Q1 FY25.

• Net debt reduced to ₹431 crore from ₹502 crore sequentially, with net D/E ratio improving to 0.58.

• Standalone and consolidated financial results for the quarter ended 30 June 2024 were reviewed and approved, with unmodified limited review reports from auditors.

Financial highlights

• Q1 FY25 consolidated revenue: ₹584 crore (up 35.7% YoY), adjusted core EBITDA: ₹58 crore (up 101.6% YoY), PAT: ₹33 crore (up 468.2% YoY).

• Standalone revenue from operations for Q1 FY25 was ₹43,910.48 lakhs, up from ₹40,475.88 lakhs in Q1 FY24.

• Consolidated net profit for Q1 FY25 was ₹3,319.51 lakhs, compared to ₹584.18 lakhs in Q1 FY24.

• Working capital days improved to 38 from 40 sequentially.

• Net worth increased to ₹743 crore from ₹710 crore sequentially.

Outlook and guidance

• MDF margin guidance for FY25 is 16%-17%, with sales expected to grow over 50% year-over-year.

• Plywood volume growth guidance is 8%-10% for FY25, with margins expected to remain flattish.

• Price increases in plywood of 1.5%-2% were implemented in June, with further hikes possible.

• CapEx for FY25 estimated at ₹70 crore, including MDF and plywood expansions.

• Focus on ESG, product portfolio expansion, automation, and manufacturing base diversification to leverage emerging opportunities.