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Greenply Industries zooms 19% on strong operational performance in Q3

The company said the margin was expected to improve post Covid-19 from FY22 with increase in revenue and cost rationalization measures

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Greenply Industries | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

wood, ply manufacturer, greenply

Shares of Greenply Industries, on Friday, surged 19 per cent to Rs 163.75, also its 52-week high, on the BSE in intra-day trade, after reporting a strong operational performance in the December quarter (Q3FY21).

Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) margins rose by 119 basis points year on year (YoY) to 12.8 per cent, on sustained focus on reducing overheads and making operations more efficient. The company said the margin was expected to improve post Covid-19 from FY22 with increase in revenue and cost rationalization measures.

The rising residential/ commercial construction, increasing urbanization, high disposable incomes, GST Implementation and Government announcement regarding construction of 100 smart cities will key drivers for strong demand.

The company’s consolidated net profit during the quarter grew 17.2 per cent YoY at Rs 25.0 crore from Rs 21.3 crore. Net sales, however, declined 1.6 per cent YoY to Rs 339.20 crore from Rs 344.90 crore in a year ago quarter. On sequential basis, net profit jumped 34 per cent, while net sales rose 15 per cent.

The improving demand environment, continuing initiatives across sales, marketing and operations functions translate to performance reverting to close to pre Covid levels, the company said. The improved working capital cycle and financial management enables Greenply India to be net debt free. Net working capital days lower on both a standalone and consolidated basis, it said.

At 02:02 pm, the stock was trading 14 per cent higher at Rs 157 on the BSE, as compared to 0.28 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped 6-fold with a combined 8.1 million equity shares were changing hands on the NSE and BSE so far.

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First Published: Fri, February 12 2021. 14:05 IST
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