Greenply - Q3 Net Profit Rise 76.28%

Greenply - An Interior Infrastructure Company

Greenply Industries reported a 76.28 % rise in net profit at Rs 6.54 crore for the third quarter (Q3) ended December 31, 2006, compared to a Rs 3.71 crore net in the corresponding quarter previous year. The profit follows a 47.31 % growth in gross sales revenue during the October-December quarter at Rs 119.21 crore (Rs 80.92 crore).

A company with interests in branded plywood and laminate industry, Greenply Industries attributed the bottom line growth to increase in operating margins. Greenply’s product categories of plywood, laminate, decorative veneer and particleboard’s too clocked growth in sales.

This apart, “our marketing initiatives and introduction of newer products helped achieve a price growth of almost 15% in our decorative veneer category. We also witnessed overall growth across all product categories and good capacity utilisation from Nagaland, Kolkata and Behror (Rajasthan) units resulting in improved margins,” Mr Saurabh Mittal, joint managing director & CEO, Greenply Industries, said in a media statement issued after the board meeting held in Kolkata on Monday.

“Greenply’s range of products has given it the status of a one-stop manufacturer of all products related interior infrastructure from plywood & boards, flush doors, decorative veneers, decorative laminates to pre lam MDF and particleboard,” Mr Mittal added.

Interest outgo in Q3 under review was Rs 3.90 crore against Rs 2.20 crore in the previous corresponding quarter. Depreciation costs stood at Rs 2.37 crore in the period under review compared to Rs 1.49 crore in the corresponding previous quarter. Profit before tax in the quarter under review was Rs 8.06 crore (Rs 4.24 crore).

The company’s Pant Nagar plant in Uttaranchal with an installed capacity to produce 6.60 million square metres of plywood and 1.82 million square metres of particleboard commenced production. With the Uttaranchal unit going on stream, the company’s total plywood capacity stands enhanced to 17.10 million square metres.

Greenply Industries is in the process of expanding its existing laminates production capacity of the Rajasthan unit from 39.60 lakh sheets to 53.40 lakh sheets per annum. Total outlay for the proposed expansion is estimated at Rs 40 crore and entails setting up of a fourth production line.