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Furniture-Furnishing-Paints company Greenlam Industries announced Q4FY24 & FY24 results:
Q4FY24 Financial Highlights:
- Net revenues reported at Rs 624.1 crore, growth of 16.9% on YoY basis
- Laminate business grew by 9.2% in value and 11.9% in volume terms on YoY basis
- Veneer & Allied business grew by 44.7% in value terms on YoY basis
- EBIDTA reported at Rs 83.5 crore, growth of 12.8% on YoY basis
- Net Profit reported at Rs 40.8 crore, de growth of 11.5% on YoY basis
- Working capital stood at 60 days which is lower by 6 days on YoY basis
FY24 Financial Highlights:
- Net revenues reported at Rs 2,306.3 crore, growth of 13.8% on YoY basis
- Laminate business grew by 10.1% in value and 11.3% in volume terms on YoY basis
- Veneer & Allied business grew by 20.2% in value terms on YoY basis
- EBIDTA reported at Rs 294.7 crore, growth of 26.5% on YoY basis
- Net Profit reported at Rs 138.0 crore, growth of 7.8% on YoY basis
Speaking about the results Saurabh Mittal, Managing Director and Chief Executive Officer, Greenlam Industries Ltd. said, "The fourth quarter exhibited an overall revenue growth of 16.9% on a year-over-year (YoY) basis, driven by growth across all segments: laminates, veneer & allied products, and plywood. The laminate business continues to expand in both value and volume terms, growing at 9.2% and 11.9% respectively on a YoY basis with overall capacity utilization for the quarter at 85%. For the quarter, revenues for the veneer and allied business grew by 44.7%, while the plywood business saw a QoQ growth of 64.6%. Our international revenues for the year crossed the Rs 1,000 crore mark for the first time, despite challenging geopolitical situations worldwide. Further, continued disturbances in the Red Sea have led to delays in container availability, longer shipment times on certain routes and increased freight costs. On the domestic front, the building material industry is facing demand challenges. Despite these obstacles, for the quarter our domestic and international revenues grew by 25.8% and 7.2% on YoY basis, respectively.
Our gross margin stood at 53.0%, an improvement of 420 bps. This improvement was due to stable raw material prices in laminate and veneer & allied business. However, timber costs have seen significant increase which has impacted plywood business. Nevertheless, our pricing discipline and continued focus on value mix have helped us achieve an improvement in gross margins. Our EBITDA margin was 13.4%, which is lower by 50 bps compared to the same period last year. Our plywood unit in Tindivanam and laminate unit in Naidupeta, which started operations in FY24, are progressing well. The laminate unit in Naidupeta has turned EBIDTA positive within six months of operations, and the plywood unit in Tindivanam is witnessing growth and a reduction in losses.
Our net working capital days stood at 60 days, an improvement of 12 days over Q3FY24. As of March 31, 2024, our net debt stood at Rs 834.0 crore.
Our particle board project in Naidupeta, Andhra Pradesh, is now expected to start commercial production in Q3FY25. Greenlam remains committed to growth, efficient resource use, and overcoming challenges to achieve our goals.”
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