Greenlam Industries logs 34.4% yoy growth in Q3 revenue at Rs450cr led by strong demand in laminate business

8 Feb 2022 , 02:11 PM

Greenlam Industries Limited stocks in focus on Tuesday after it has announced unaudited consolidated financial results for the quarter and nine months ended December 31, 2021

Highlights for the Quarter ended December 31, 2021

• Net revenues reported at Rs449.7cr, growth of 34.4% on yoy basis
• Laminate business revenues grew by 38.1% in value terms and 1.7% in volume terms on yoy basis
• EBDITA reported at Rs53.4cr, de-growth of 7.9% on yoy basis
• Net Profit reported of Rs26.9cr, de-growth of 15.8% on yoy basis

Highlights for Nine Months ended December 31, 2021

• Net Sales reported at Rs1240.0cr, growth of 58.1% on yoy basis
• Laminate business revenues grew by 61.8% in value terms and 40.9% in volume terms on yoy basis
• EBDITA reported at Rs137.5cr, growth of 29.4% on yoy basis
• Net Profit reported at Rs64.9cr, growth of 51.7% on yoy basis

Speaking about the results Saurabh Mittal, Managing Director and Chief Executive Officer, Greenlam Industries Ltd. said, “This quarter our consolidated topline grew by 34.4% on year-on-year basis to Rs449.7cr. The growth was led by the laminate business owing to the improved product mix and price hikes, however, volumes remained flat.

The performance was impacted due to disruption at the Behror plant which was temporarily shut for a period of 7 days and thereafter operated with restrictions as per the guidelines of CAQM (Commission for Air Quality Management) on pollution related issues in National Capital Region. This disruption, however, impacted our revenues and margins and led to higher raw material inventory. Our net profit for the period stood at Rs26.9cr, net working capital days stood at 76 days and net debt stood at 178.5cr.

The company, in Dec 2021, announced to invest Rs.950crs over a period of 2-3 years, towards setting up its third Laminate plant and foray into two adjacent categories – Plywood and Particle Board. The investments in third Laminate plant and Particle Board will be done under Greenlam South Limited, a 100% subsidiary of Greenlam Industries Limited based at Naidupeta, in Andhra Pradesh.

The dedicated Plywood manufacturing facility will come under the newly acquired subsidiary HG Industries Limited based at Tindivanam, Tamil Nadu. This expansion will position Greenlam from a decorative surfacing company to a leading integrated wood panel player.

At Greenlam, we always believe in serving our customers with only the best. Our constant endeavor is to bring superior products, which are developed using the latest industry-first technology that aid them to redefine their living spaces.’’

At around 2:10 PM, Greenlam Industries was trading at Rs1775.30 per piece lower by 2.77% on Sensex.