Q1 2027 Century Plyboards (India) Ltd Earnings Call Transcript
Key Points
- Record quarterly consolidated revenue of INR1,561 crores, up 33.5% year-on-year, with PAT up 57% to INR83.3 crores.
- Plywood business achieved highest-ever EBITDA margin of 16.9%, supported by a 7% price increase and strong demand.
- MDF business grew nearly 29% year-on-year despite planned maintenance, with capacity expansion at Andhra Pradesh plant to 950 cbm/day.
- Particle board revenue surged 155.7% year-on-year, driven by higher capacity utilization and growing market acceptance.
- Launched industry-first 'Total Cover' assurance program for Club Prime plywood, enhancing brand trust and consumer confidence.
- Logistics subsidiary stabilized and turned positive, handling over 9,000 containers in Mumbai, adding a new revenue stream.
- Improved return ratios: ROE up to 13.5% and ROCE up to 14.4%, reflecting better asset utilization and operating leverage.
- MDF business saw a sequential revenue decline due to planned plant shutdown for capacity expansion, impacting quarterly production.
- Particle board margins remain at early-stage levels, with profitability expected to improve only gradually over coming quarters.
- Working capital debt increased due to rapid growth (33% revenue growth) and 60-day debtor cycle, putting pressure on the balance sheet.
- Management refrained from providing volume or revenue guidance due to volatile geopolitical conditions and fluctuating input costs.
- UP greenfield plywood plant delayed to Q1 FY29, pending land acquisition, and MDF project in UP remains uncertain with no timeline.
- Price increases taken across segments (e.g., MDF 15%, laminates 10%) have been partially rolled back due to volatile raw material prices.
- Laminate business saw weak volume growth in Q1 due to product mix shift, with no clear guidance on when volume growth will resume.
Good day ladies and gentlemen. Welcome to the Century Plyboards (India) Limited Q1 FY27 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I will now hand the conference over to Mr. Navin Agrawal, Head of Institutional Equities at SKP Securities Limited. Thank you, and over to you.
Good afternoon, ladies and gentlemen. I am pleased to welcome you to this financial results conference call on behalf of Century Plyboards and SKP Securities.
We have with us Mr. Sanjay Agarwal, MD and CEO; Mr. Keshav Bhajanka, Executive Director; Mrs. Nikita Bansal, Executive Director; along with Mr. Arun Julasaria, CFO; Mr. Sumanth Watts, CEO, MDF and Particle Board Business; and Mr. Vishu Goel, CEO, Laminates Business.
We'll have the opening remarks from Mr. Sanjay Agarwal, followed by a Q&A session. Thank you, and over to you, Mr. Agarwal.
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