Greenpanel Ind hits the roof after robust Q2 outcome

Greenpanel Industries hit an upper circuit limit of 5% at Rs 350.15 after the company's consolidated net profit surged 264.60% to Rs 67.05 crore on 87.76% increase in net sales to Rs 422.22 crore in Q2 September 2021 over Q2 September 2020.

On a consolidated basis, profit before tax (PBT) surged 474.74% to Rs 94.20 crore in Q2 September 2021 over Q2 September 2020. EBITDA jumped 148.31% YoY to Rs 115.29 crore in Q2 September 2021.

During the quarter, the company's cost of raw material jumped 87.04% year-on-year to Rs 167.01 crore.

Net cash from operating activities stood at Rs 164.99 crore as on 30 September 2021 compared with Rs 154.64 crore as on 31 March 2021.

Shobhan Mittal, managing director and CEO, Greenpanel Industries, said: "MDF (medium density fibreboard) volumes grew 66.9% year-on-year; operating margins improved 860 basis points to 31.4%."

"Plywood volumes grew 22.4% although operating margins fell 275 basis points to 13.6% due to increased raw material costs."

"Consolidated operating margins increased 697 basis points to 28.2% due to our superior product mix, cost optimization and operational leverage."

"Net debt reduced Rs 129 crore during Q2 to Rs 229 crore as on 30th September 2021. We prepaid four German Bank loan instalments amounting to Euro 8.91 Mn (INR 78 crores) in October 2021; we are targeting to be net debt-free for our existing business in FY 2023."

"We are optimistic of sustainable growth in the coming quarters," he added.

Greenpanel is India's largest manufacturer of wood panels. Its manufacturing plants in Uttarakhand and Andhra Pradesh make top-quality medium density fibreboard (MDF), plywood, veneers, flooring and doors.

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