Greenply Industries Q4FY16 standalone net profit rises 9.36% yoy to Rs.41.30 crore : Estimates Mixed

The company’s standalone revenue stood at Rs. 453.28 crore, up 5.65% yoy and 7.44% qoq.

May 24, 2016 2:50 IST | India Infoline News Service
Greenply Industries, leader in manufacturing plywood, reported standalone net profit of Rs.41.30 crore for the quarter ended March 31, 2016, registering decline of 9.36% yoy, but growth of 16.85% qoq. The company’s revenue stood at Rs. 453.28 crore, up 5.65% yoy and 7.44% qoq.

Its standalone core operating profit of Rs. 67.58 crore for the quarter, clocked growth of 25.38% yoy and 4.35% qoq. Operating profit margin for the current quarter at 14.91% expanded by 235 bps yoy but contracted by 44 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 130.59 crore, growing by 7.2% yoy. Its standalone revenue for the period stood at Rs. 1,656.85 crore, registering growth of 5.92% yoy.

Greenply Industries Ltd's core operating profit stood at Rs. 244.77 crore, recording growth of 19.45% yoy. Operating margin for the current period at 14.8% expanded by 170 bps yoy.

Greenply Q4FY16 - Single digit revenue growth though margin zooms:

Greenply ‘s Net revenue improved 5.7% to Rs. 453cr, 6.1% lower than IIFL estimate of Rs483cr but 2.2% higher than BBG estimate of Rs. 444 crore. The increase in revenue is attributed to 7.2% growth in MDF segment and 4.5% growth in Plywood segment.

The company’s EBIT margin for Plywood improved 84bps to 9.3% and MDF reported an increased by 585bps to 26.5% which led a 234bps expansion in EBITDA margin to 14.9%. In addition, decline in raw-material cost 253bps further supported margin expansion for the company.

With better margin improvement, and revenue growth, EBITDA grew 25.4% to Rs. 68 crore for the quarter, 3.7%/1% higher than IIFL/BBG estimate of Rs. 65 crore/Rs. 67 crore, respectively.  During the quarter, the interest cost declined 27.9% led a 5.4% increase in PBT to Rs. 52 crore. However, the tax rate increased to 23.9% in Q4FY16 as against 8.3% in Q4FY15, PAT declined 6.4% to Rs. 41 crore, 24.1%/9% higher than IIFL/BBG estimate, respectively.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 453.28 482.6 [6.08]
Standalone Net Profit 41.30 33.28 24.09

Standalone EPS for the quarter stood at Rs. 3.42.

Bloomberg estimated the company’s standalone net profit at Rs. 38 crore.

Corporate Action: Greenply Industries' board of directors at its meeting held on May 24, 2016 has recommended final dividend of Rs. 0.60/- per equity share of Rs. 1/- each subject to approval of shareholders. The meeting was commenced at 12:30 p.m. and concluded at 2:20 p.m.

Stock Commentary:

Greenply Industries Ltd is currently trading at Rs. 210.2, down by 2.4 points or 1.13% from its previous closing of Rs. 212.6 on the BSE.

The scrip opened at Rs. 215 and has touched a high and low of Rs. 215.4 and Rs. 207.8 respectively. So far 1252641(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 2565.7 crore.

The BSE group 'B' stock of face value Rs. 1 has touched a 52 week high of Rs. 234.8 on 12-May-2016 and a 52 week low of Rs. 152 on 18-Jan-2016. Last one week high and low of the scrip stood at Rs. 216.65 and Rs. 195 respectively.

The promoters holding in the company stood at 55 % while Institutions and Non-Institutions held 23.58 % and 21.42 % respectively.

The stock is currently trading below its 50 DMA.

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