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Greenpanel Industries, one of the largest MDF and plywood-makers in India, is expecting to maintain its EBITDA margin guidance of around 23–25 per cent for the MDF segment and 8–10 per cent in plywood for FY24. It is targeting a double digit volume growth of 12-15 per cent in MDF; and 8–10 per cent in plywood.
The company’s Q1 was impacted by increased brand spends, loss of production and sales volume due to the maintenance shutdown at Rudrapur (Uttarakhand) — which hit the bottomline and increased maintenance costs. This apart, there was a steep fall in export realisations and a drop in raw material costs, which saw the profit-after-tax halve on a y-o-y basis to Rs 37 crore.
For the April–June period, the EBITDA margin (earnings before interest, tax, depreciation and amortisation) was 18.7 per cent. In terms of volumes, the MDF sales (accounting for 88 per cent of turnover) fell by 13 per cent at Rs 340 crore; while plywood sales volumes dropped by 37 per cent.
The new offerings, which come at 7-8 per cent lower cost, are expected to have a 15–20 per cent contribution towards volumes (on a full year basis). Mix of value-added products was around 54 per cent in Q1 (higher than Q4FY23). The target is to take value-added products to be in the 65 per cent range in the medium term.
