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Yes Securities Report
Greenlam Industries Ltd., registered a decent set of numbers in Q1 FY24 wherein revenue stood at Rs 5.15 billion, a growth of 10%YoY. Gross profit margins improved from 45%/49% in Q1 FY23/Q4 FY23 respectively to 52% in Q1 FY24.
However, Ebitda margins remained capped at 12.5% as compared to 10.7%/13.9% in Q1 FY23/Q4 FY23 respectively owing to higher employee and other cost.
Laminates revenue (92% of total revenue), increased by 10% YoY and declined by 4% QoQ. Volumes came in at 4.17 million sheets, a growth of 6% YoY and degrowth of 11% QoQ and average selling price improved to Rs 1,132/sheet versus Rs 1,092/Rs 1,053 in Q1 FY23/Q4 FY23 respectively.
Export volumes (42% of total volumes) came in at 1.7 million sheets, a de-growth of 8% YoY and 12% QoQ, largely impacted due to disturbance in port operations during 10-days of the quarter which was caused by cyclone conditions (revenue loss of Rs 200 million).
Export revenue (50% of laminate revenue) grew by 6% YoY and degrew by 8% QoQ. Domestic volumes (58% of total volumes) increased by 29% YoY and declined by 10% QoQ to 2.4 million sheets.
Domestic revenue (50% of laminate revenue) grew by 13% YoY and remained flattish QoQ.
Gross profit % of laminates came in at 53% as compared to 46%/49% in Q1 FY23/Q4 FY23 respectively. However, Ebitda margins came in at 14.8% as compared to 12.4%/15.6% in Q1 FY23/Q4 FY23 respectively.
The greenfield laminate plant with an annual capacity of 3.5 million sheets is on-schedule and will commence from Q2 FY24.
Owing to steady demand across domestic and export markets and new upcoming capacity, we reckon Greenlam's laminate volumes to grow by 19% compound annual growth rate over FY23-FY25E and revenue should grow by 17% CAGR over similar period.
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