Greenply Industries reports net down by 26% to Rs 23.6 crore in Q2

Leading plywood maker Greenply Industries Limited reported a consolidated net profit of Rs 23.6 crore for the second quarter, a decline of 26% over the corresponding quarter of the previous year

Leading plywood maker Greenply Industries Limited on Tuesday reported a consolidated net profit of Rs 23.6 crore for the second quarter ended September 2022, a decline of 26 per cent over the corresponding quarter of the previous year.

The company's profit suffered due to a challenging macro environment and rising timber prices, a company official stated.

The company for the quarter under review posted a revenue of Rs Rs 494.7 crore from operations, a 14 per cent jump over the corresponding period revenue of Rs 432.4 crore.

Adjusted core EBIDTA (Earnings before interest, taxes, depreciation, and amortisation) margin remained almost flat at Rs 52.9 crore during the quarter.

"We delivered good volume growth in the quarter backed by the commissioning of the Sandila unit and improved demand momentum due to festivities. The macro-environment has been challenging with a continued increase in timber prices, partially offset by the ease in some chemical prices. The situation remains volatile," Greenply Joint MD & CEO Manoj Tulsian said.

"We expect the demand scenario to remain favourable with continued momentum in the real estate sector, especially in semi-urban and rural areas," he said.

The company is setting up a new MDF board manufacturing unit, with a capacity of 800 cubic metres (CBM) per day, near Vadodara in Gujarat. The expected commencement of the plant is in the March quarter of FY'23.