Greenply Industries reports 97% jump in Q4 PAT ₹32.5 crore

The firm clarified that net profit for the fourth quarter of the fiscal year 2024 (FY24) includes a gain on sale of investment of ₹4.5 crore while net profit for the fourth quarter of the fiscal year 2023 (FY23) includes a loss on account of impairment in the value of an investment in joint venture (JV) of ₹16.6 crore.

Revenue from continuing operations rose 40.3% to ₹598.6 crore during the quarter. Adjusted core earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 22.8% to ₹59.4 crore while EBITDA margin declined to 9.9% as compared to 11.3% in the same period of the previous fiscal.

For FY24, net profit from continuing operations declined 20% to ₹85.2 crore. Revenue from continuing operations grew 31.1% to ₹2,174.6 crore. Adjusted core EBITDA rose 12.6% to ₹190.6 crore while EBITDA margin declined to 8.7% as compared to 10.2% in the previous fiscal.

During the quarter, the firm consummated the divestment of its controlling stake in its subsidiary Greenply Middle East along with the step-down subsidiary in Gabon, Africa. Greenply Industries said the transaction will help it focus on its core business in India.

Manoj Tulsian, joint managing director (JMD) and CEO of Greenply Industries said the growth in the plywood business for the fourth quarter was in line with the firm’s expectations; however, margins remained under pressure as a result of high raw material prices and substantial increase in advertisement spend. Tulsian also pointed out that the firm achieved its full-year growth target.

“During the quarter we continued to focus on building a strong product portfolio and introduced a few value-added products. Going forward we are confident of achieving better margin profile in this business,” he added.

The board of directors has recommended a dividend of ₹0.5 per share.

Shares of the company have gained over 6% since the beginning of the year. The stock has risen over 59% in the last one year.