Greenpanel Q1 FY27: Revenue up 8.5%, MDF volumes +12%, guidance withheld amid volatility
Earnings Call Transcript
Financial Performance
- Quarterly revenue: INR 350 crore, up 8.5% YoY.
- MDF volumes grew ~12% YoY; MDF revenues +8% YoY.
- Ply volumes +10.4% YoY; ply revenues +5% YoY.
- Consolidated EBITDA: INR 33.5 crore, 9.6% of revenues; excludes euro borrowing FX.
- MDF EBITDA margin: 10.3% in Q1 FY27 vs 4.4% YoY.
- Gross margin: 52.7% in Q1 FY27.
- Exports in Q1 FY27: zero; OEM demand degrew; domestic MDF volumes grew.
- Forex loss: INR 2.5 crore; ECB component INR 1.8 crore.
Operating Update
- MDF volumes grew 12% YoY; revenues grew 8% YoY.
- Ply volumes grew 10.4% YoY; revenues grew 5% YoY.
- Export flows expected to resume as Middle East normalizes over time.
- OEM share ~20–25%; retail ~75–80%.
- ASP increased ~7.4% due to OEM-to-retail mix shift.
- Pricing rollbacks by peers; market remains price-sensitive; exports limited this quarter.
Capex and Projects
- MDF capex planned: near-term capex largely maintenance; no new large capex in next 18–24 months.
- Plywood capex: plan to add machinery to raise production 30–40% with minimal investment.
- Maintenance shutdowns: 5–7 days this quarter; not a full 15-day shutdown.
Guidance and Outlook
- Guidance for full year withheld due to uncertainties; not in a position to provide long-term guidance.
Q&A Highlights
- Diversifying exports: exploring alternate markets; freight-volatility remains.
- OEM demand expected to recover this quarter; supply agreements being reestablished.
- Channel inventory: market on hand-to-mouth; partners hesitant to stock amid volatility.
- Raw-material volatility: chemical costs rising again; timber costs stable; monitor in real time.
- Domestic strategy: pricing aggressive to defend share; aim to regain industry leadership.
- June–July exports: very small quantities; Middle East exports unviable due to freight.
Risks and Watchpoints
- Raw-material price volatility and geopolitical risk in Middle East.
- Freight cost volatility impacting export competitiveness.
- Channel destocking compressing near-term volumes.
- Funding and capacity utilization dynamics across MDF and plywood.