Greenply Industries Posted Good Set Of Numbers In Q4

Greenply Industries (GIL) is India's largest interior infrastructure company. The Company is engaged in manufacturing and marketing a range of interior infrastructure products, such as surface finish and structural products for homes, offices and retail establishments. It operates in two segments such as  Plywood & Allied Products, Medium Density Fibre Boards (MDF) & Allied Products. Recently GIL demerged its decorative business comprising of laminates & allied products with all assets and liabilities into Greenlam Industries as a separate entity becasue to focus each business depending upon product characteristics, different marketing reach.

GIL demerged decorative business in November 2014 therefore results are not comparable. So, we are considering results for current business segments i.e. Plywood and Medium density fibre Board. Net sales of the company increased by 13.8  per cent to Rs 429 crore in Q4FY15 on yearly basis as its strategy to gain market share from unorganised segment. Total expenditure of GIL increased by 14.63 per cent from Rs 327 crore in Q4FY14 to Rs 375 crore in Q4FY15. The increment of total expenditure was largely due to a 37.42 per cent increment in employee cost, a 25.59 per cent increment in other expenses, a 6.47 per cent increment in raw material prices during the same period.

GIL's EBITDA increased by 8.38 per cent from Rs 50 crore in Q4FY14 to Rs 54 crore in Q4FY15. However, EBITDA margin of the company contracted  by 63 basis points to 12.57 per cent in Q4FY15 on yearly basis. Its EBIT incresed by only 2.73 per cent to Rs 42 crore in Q4FY15 on yearly basis becasue its depreciation expence increased by 32.98 per cent to Rs 12 crore during the same period. Its EBIT margin reduced by 104 basis points to 9.68 per cent in Q4FY15 on yearly basis.

PBT of GIL increased by 55.92 per cent to Rs 50 crore in Q4FY15 on yearly basis due to exceptional income of Rs 16 crore as refund of Central Excise Duty and a 11.96 per cent reduction in interest cost to Rs 8 crore during the quarter. The company's Net Profit increased by 102.17 per cent and remain at Rs 46 crore in Q4FY15 as tax expense decreased by 55 per cent to Rs 4 crore during the quarter on yearly basis. Its Net Profit margin expanded to 464 basis points to 10.62 per cent in Q4FY15 on yearly basis.

Segment wise GIL's revenue contributed a 72.31 per cent of net sales from plywood segment amounting Rs 310 crore, remaining 27.59 per cent of net sales from Medium Density Fibre Board amounting Rs 118 crore in Q4FY15. Plywood segment grew by 8.34 per cent and MDF by 29.76 per cent in Q4FY15 on yearly basis.

Considering full year result, net sales of GIL increased by 12.47 per cent and stood at Rs 1564 crore in FY15 against Rs 1391 crore in FY14. Total expenditure of the company increased by 11.65 per cent to Rs 1359 crore in FY15 on yearly basis. Increment in total expenditure was primarily due to a 47.21 per cent increment in traded goods expense, a 21.42 per cent increment in employee cost, a 13.67 per cent increment in other expenses during the same period.

GIL's EBITDA increased by 18.22 per cent to Rs 205 crore in FY15 as compared to previous financial year because its operational efficiency. EBITDA margin of the company was expanded to 64 basis points to 13.1 per cent in FY15 on yearly basis. Its EBIT too increased by 14.85 per cent in FY15 on yearly basis though depreciation expense increased by 31.17 per cent to Rs 47 crore during the same period. EBIT margin of GIL increased by 21 basis points to 10.09 per cent during the year.

The company's PBT also increased by 33.87 per cent to Rs 139 crore in FY15 becasue exceptional income of Rs 16 crore as refund of Central Excise Duty during the same period on yearly basis. Its Net Profit increased by 57.63 per cent from Rs 77 crore in FY14 to Rs 122 crore in FY15 as tax expense decreased by 34.01 per cent to Rs 17 crore during the same period. GIL's Net Profit margin expanded by 223 basis points to 7.79 per cent in FY15 on yearly basis.

Segment wise GIL's revenue comparises as a 73.71 per cent of net sales from plywood amount to Rs 1155 crore and a 26.09 per cent to net sales from MDF Board amount to Rs 409 crore in FY15. The company has 4 plywood manufacturing facility with 32.4 million sqaure metre capacity and one MDF manufacturing facility with 180000 cubic metre capacity across pan-India.

GIL's shareholding pattern indicates FII holdings contracted by 308 basis points to 12.21 per cent and DII holdings also increased by 1 basis point to 7.94 per cent during March 2015 quarter.

GIL is setting a new plant in Andhra Pradesh for MDF segment over FY16-19. The company is improving on product mix of plywood and higher margin varients in MDF. It is also focusing on IT infrastructure by implementing SAP to strengthen overall supply chain. GIL is engaged in plantation of fast growing and improved species of clonal plantations to improve quality of wood for raw material sustainability. The company formed 50 per cent JV with Alkemal Singapore Pte Ltd for setting up veneer cum plywood unit.