Greenply Q2 net profit down 86%

Laminate and plywood maker Greenply today announced 86 per cent decline in net profit for the quarter ended September 30, to Rs 1.58 crore, from Rs 11.44 crore posted in the year-ago period.

The company said the huge decline in the net profit is due to the breakdown of one of its manufacturing units in Uttaranchal resulting to a production loss of Rs 14 crore during the quarter.

"The net decline is due to breakdown of one of our units in Uttaranchal, which we set up last year. This is due to damage of the boilers.. It has cost us around Rs 14 crore," Greenply Chief Financial Officer Venkat Ramani told PTI.

The company said the plant has a total installed capacity of 600 cubic metre of multi density fibreboards every day. It currently functions 20 per cent of total capacity and started operation again in October.

During the quarter, the company's net sales registered a growth of 32.74 per cent to Rs 288.72 crore as compared to Rs 217.51 crore posted in the year-ago period.

Ramani said the company has already earmarked an investment of Rs 20 crore for expanding its plywood plant in Gujarat.

"We are in the process of investing Rs 20 crore for expanding capacity of one of our plywood plant near Ahmedabad. The expansion will be completed by February, 2011," he said.

Greenply currently has a total of seven plants across the country.