The company's consolidated net profit declined by 40.57% to Rs 37.5 crore in Q3 FY 23 compared to a net profit of Rs 63.1 crore in the same period last year. The revenue from operations in Q3FY23 fell marginally by 2.36% YoY to Rs 416.1 crore, while the operating profit came in at Rs 92 crore, a drop of 17.11%. The EBITDA margin fell to 21.90%, a drop of 428 bps YoY. It is being said that the fall in net profit was due to sluggish demand in the US and Europe and growing MDF imports into India. Management stated that demand for MDF remains strong, but higher imports have impacted domestic demand for the company.
“MDF Export Volumes rose by 24% while domestic volumes fell by 7%. MDF EBITDA Margins (excluding forex loss / gain) were lower by 353 bps q-o-q and 452 bps y-o-y at 25.6% due to fall in domestic volumes and price cuts taken in export realizations. PAT was impacted by Forex Loss of Rs 17.29 crores. We maintained working capital discipline in a challenging quarter generating Cash Rs 94 crores, said Mr Shobhan Mittal, Managing Director & CEO Greenpanel Industries Limited.
“MDF sales volumes fell by 2%. MDF Ebitda Margins (excluding forex loss / gain) were down by 353 bps q-o-q at 25.6% due to fall in domestic volumes and reduction in export realisations. PAT was hit by Currency Loss of Rs 17.22 crores, Rs 8.45 crores included in forex loss (above Ebitda) and Rs 8.77 crores included in Finance cost. Plywood volumes fell by 2.5% QoQ; operating margins marginally lower at 7%. Consolidated operating margins (excluding forex loss / gain) fell by 319 basis points to 23% due to reasons mentioned above,” he added.
According to the statement made by Mr Shobhan Mittal the company’s net debt reduced to negative Rs 145 crores as on 31st December 2022. They are increasing the Greenpanel Brand Value, by associating with Delhi Capitals, an IPL Franchise, as principal sponsor for 3 years. They are also widening distribution reach and increasing proportion of value-added products that will be their major focus areas in future quarters.