Chairman and MD of CenturyPly's reaction to new GST rates

India Infoline News Service | Mumbai | November 05, 2016 15:10 IST

"One distinct advantage GST will bring to the organised sector, will be providing a level playing field, because the exemption limit is restricted to 20 lakhs. All small ply units will go out of exemptions. So for the organised sector, the unhealthy competition will drastically reduce", said Sajjan Bhajanka, Chairman of CenturyPly.

“As per yesterday’s development at GST committee meet, for our segment the applicable rate is likely to be either 18% or 28%. We are hopeful that, being a product for the masses, Plywood should be in the 18% bracket. Ninety percent of our raw material base is plantation timber which is grown in India on an agro forestry basis. So it won’t be justified to treat plywood at par with the luxury goods or the white goods as it is an intermediate product, mostly used for making furniture & interiors of the house. In case it is 18%, we shall be happy & we shall welcome it & whatever benefit we get we will pass on to the consumers. In case if it is in the 28% category, we shall be compelled to maintain the present price line. 
 
But one distinct advantage GST will bring to the organised sector, will be providing a level playing field, because the exemption limit is restricted to 20 lakhs. All small ply units will go out of exemptions. So for the organised sector, the unhealthy competition will drastically reduce. And also, there is possibility of migration of good quantity of material from the unorganised to organised sector. Thus, the organised sector can increase the 30% market share limit and can extend to 50%”, said Sajjan Bhajanka, Chairman of CenturyPly.
 
“The GST agreements are happening at unbelievable speed. The rates and exemption limit were major hurdles. I now believe that GST will come. I suggest that items for each slab should be decided with full practical logic so that the incidence is reduced to some extent. I congratulate WB Finance Minister, Amit Mitra and all the members of the council for such a pragmatic approach and action”, said Sanjay Agarwal, MD of CenturyPly.

Stock Commentary: 
Century Plyboards (India) Ltd ended at Rs 230.45, down by Rs 5.95 or 2.52% from its previous closing of Rs 236.4 on the BSE.
 
The scrip opened at Rs 242 and touched a high and low of Rs 242 and Rs 229.9 respectively. A total of 95382(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 5117.75 crore.
 
The BSE group 'B' stock of face value Rs 1 touched a 52 week high of Rs 267 on 20-Oct-2016 and a 52 week low of Rs 135.45 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs 257 and Rs 228.1 respectively.
 
The promoters holding in the company stood at 72.21 % while Institutions and Non-Institutions held 18.06 % and 9.73 % respectively.
 
The stock traded below its 50 DMA.

***Note: This is a NSE Chart

 

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