homebusiness Newscompanies NewsGreenlam Industries management guides for 20 25% revenue growth in FY24 Stock up 12%
Greenlam Industries management guides for 20-25% revenue growth in FY24 - Stock up 12%
The greenfield laminate project in Andhra Pradesh is expected to start commercial production by the second quarter of 2023-24, while the particle board project in Andhra Pradesh should start commercial production by the fourth quarter.
Greenlam Industries is expecting 20-25 percent growth in the current financial year as new capacity comes on stream and businesses continue to grow as well.
In an interaction with CNBC-TV18, Greenlam MD & CEO Saurabh Mittal told CNBC-TV18 that overall peak revenue potential is currently between Rs 3,500 crore to Rs 3,600 crore. He also said that the commercial production from the company's facility in Tamil Nadu will begin in June. While the Gujarat facility has revenue potential of Rs 250 crore, the plywood business has a revenue potential of Rs 400 crore. The capacity of the Gujarat plant has increased to 5.4 million sheets from 3.4 million sheets from May 17.
Mittal further said that while exports are 45 percent of the total revenue, the exports of laminates will form half of that.
During the March quarter, Greenlam's revenue rose 15.2 percent to Rs 533.8 crore in the March quarter compared to Rs 463.4 crore in the year-ago quarter.
Operating profit, or EBITDA (earnings before interest, tax, depreciation and amortisation), jumped 49.5 percent to Rs 74.06 crore compared to Rs 49.54 crore.
Margins improved to 13.9 percent during the quarter from 10.7 percent in the same quarter a year ago. Mittal said that there would be no loss of margin within the exports business.
Net profit for the quarter rose by nearly 80 percent to Rs 46.1 crore as the company's sea freight costs saw significant softening.
Among specific segments, the laminates division’s revenue was up 16 percent to Rs 491.6 crore in the March quarter, while the veneer segment’s revenue rose 6.8 percent to Rs 42.17 crore.
However, the Veneer business reported an EBITDA loss of Rs 1.08 crore from Rs 4.35 crore last year. Mittal expects the Veneer business to turn profitable soon.
The greenfield laminate project in Andhra Pradesh is expected to start commercial production by the second quarter of 2023-24, while the particle board project in Andhra Pradesh should start commercial production by the fourth quarter.
Shares of Greenlam are trading 13 percent higher at Rs 356.95.
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