Q1 2027 Greenlam Industries Ltd Earnings Call Transcript
Key Points
- Consolidated revenue grew 18% YoY to nearly INR800 crore, with EBITDA before ForEx up 48% to INR81 crore.
- Chipboard business turned EBITDA positive for the first time, with a profit of INR3.4 crore before ForEx, versus a loss of INR10 crore in Q1 last year.
- Plywood and Allied segment losses narrowed to INR5 crore from INR9 crore YoY, with sales volume up 19% and capacity utilization improving to 39%.
- Gross margin remained stable at 52.9% despite sharp input and freight cost increases, supported by price hikes.
- Net profit swung to INR21 crore from a net loss of INR15.5 crore in Q1 last year, aided by lower ForEx losses and finance costs.
- Working capital cycle improved by 3 days to 56 days, and net debt is expected to reduce by around INR100 crore in FY27.
- Ongoing West Asia conflicts caused volatile input prices, currency rates, and freight costs, leading to a significant hike in freight costs.
- Nearly INR27 crore of export shipments were postponed out of Q1 due to container and vessel availability issues, impacting laminate sales volume.
- Laminate sales volume declined 6% YoY, with domestic volume degrowth of 7.5% due to project business challenges from rising building material costs.
- Plywood segment continues to incur losses, with EBITDA breakeven expected only in a quarter this year, not for the full fiscal.
- Raw material price volatility, especially in chemicals, has led to multiple price hikes and reductions, creating market confusion and uncertainty.
- Chipboard capacity utilization is still low at 61%, and achieving optimal margins of 18-20% is not expected until FY29.
Ladies and gentlemen, good day, and welcome to Greenlam Industries Limited Q1 FY27 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Ashok Sharma, Chief Financial Officer of Greenlam Industries Limited. Thank you, and over to you, sir.
Thank you. Good morning to all, and I welcome to the quarter one FY27 earnings call of Greenlam Industries. I'm joined by Samarth Agarwal, our VP Finance; and SGA team, our Investor Relations adviser. I'm sure you had the opportunity to look at the results and the investor presentation, which are available on the stock exchanges and on the company website. I'll give you a business update of Q1 before I hand over the call to Samarth.
We are pleased to report that we have started the year with a revenue growth of 18% on year-on-year basis and taking our consolidated revenue for the quarter to nearly INR800 crore, with an EBITDA of INR81 crore before ForEx, while
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