Low raw material cost, low Chemical prices like Phenol and Methanol, which having significant share of raw materials input cost for making high pressure decorative laminates, have been a great support for the industry. The organized brands and big volume players reflected improved profit in 2nd quarter of the ongoing financial year, where as Weak and Struggling industries too found a life support due to less prices thanks to weak global demand for commodities and chemicals. During this period Greenlam Industries reported a total revenue of Rs. 327 crores, which was Rs. 275 cr in previous quarter. The company earned net profit of Rs. 24 cr in this period, where it was Rs. 15 crores in last quarter. Stylam Industries also registered a net sale of Rs 118 cr, and earned a net profit of Rs. 7.6 crores, where as its last quarter sale was Rs. 112 crores with Rs. 6.5 crores net profit.
Century Ply posted growth in its laminates business in September quarters, and the company reported Rs. 135 crores net sale in this period, which was Rs 107 crs in previous quarter, whereas Century Ply earned robust growth in its profit, which has reported to Rs. 17.8 crore before tax in this period, that was Rs. 9.6 crores in June quarter.
Mr. Keshav Bhajanka, Executive Director of Century ply said, “In laminate last year was transition year, it was a very difficult year because one we had entered with the new capacity and secondly the price of phenol which is a major constituent in the total raw material cost for laminate had shot up drastically on account of crude oil increasing and another factors. Now the prices of phenol has stabilized and we have been able to pass on the entire increase that was there earlier to the market. As such margins and laminate are likely to stand far higher than last year, we are looking at 12% plus margin for the entire year and I am more than confident that we will achieve the same”.