Greenply Industries Ltd standalone revenue declined by 12.02% QoQ to Rs. 422.13 crore for the first quarter April to June of FY 2017-18. This was due to a QoQ decline of 18% in segment revenue from Plywood and Allied products from Rs.336.34 crore to Rs. 277.2 crore. The Plywood segment is said to have suffered due to extensive de-stocking by dealers. The company’s net profit for the quarter weakened further by 26.83% QoQ to Rs. 30.63 crore.
Mr. Venkataramani, CFO of the company said that the company witnessed divergent impacts on two product segment. So while plywood volume degrowth of close to 12% and had about the 9% volume growth in the MDF segment. “I think primarily the facts that the dealers did not carry too much inventory in MDF and average inventory would be about 10 to 15 days in the MDF segment. Whereas in plywood dealers carry inventory ranging between 30 to 45 days so that is the primary reason for the lower impact on MDF,” he said.
He further added, “As far as plywood is concerned we see that recovery happening from the current quarter so I think definitely we will have positive growth in this quarter and probably it will nullify the effect of the degrowth in the first quarter. MDF, I think because we did not see any destocking happening in the first quarter we do not see any major growth happening in the second quarter with the initial problems due to GST implementation.”
Greenply Industries Ltd is one of the largest interior infrastructure company’s most comprehensive portfolio of residential and commercial floor products available - plywood & block boards, MDF and Wood floors under the brand names of Greenply Plywood, Green Club Ply, Ecotec, Green Panelmax, and Green Floormax.