Greenlam Industries shares traded 5.83 percent higher on Friday, hitting a 52 week high, after reporting a 33.2 percent increase YoY (year-on-year) in net profit for the June quarter.
The net profit for Q1FY24 stands at Rs 32.9 crore as compared to Rs 24.7 crore year-on-year. However, sequentially, the figures for the metric were flat.
At 10.30 am, Greenlam Industries stock was quoting at Rs 495.95, up 5.83 percent or Rs 27.30.
In the quarter under review, the company reported a 9.5 percent rise in its revenue from operations at Rs 515.2 crore for Q1FY24 as compared to Rs 470.6 crore in Q1FY23. Meanwhile, it declined by 3.5 percent sequentially against Rs 534 crore reported in Q4FY23.
On a yearly basis, EBITDA (earnings-before-interest-taxes-depreciation and amortisation) was up 27.8 percent at Rs 64.3 crore.
Margins for the June quarter also showed improvement growing by 180 basis points to 12.5 percent as compared to 10.7 percent reported in the corresponding quarter of the previous fiscal.
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Revenue from the sale of laminates, which contributes more than 90 percent to Greenlam’s kitty, grew by 9.69 percent YoY in the June quarter.
The company, along with the quarterly results, also informed that it has received environmental consent and clearance for setting up a greenfield project for the production of laminates and particle boards in Naidupeta in Andhra Pradesh. The company has recently ventured into the plywood and particle boards segment through its recently acquired subsidiary HG Industries Limited, located in Tindivanam, Tamil Nadu.
“The first quarter of 2023-24 witnessed continued momentum. The quarter saw the highest laminate production of 4.68 mn sheets. However, the export sales growth was impacted due to a disturbance in port operations for a duration of 10 days, which was caused by cyclone conditions. The overall volume growth for laminate business stood at 5.8% on YoY basis,” said Saurabh Mittal, Managing Director and Chief Executive Officer, Greenlam Industries Ltd.
Greenlam Industries Limited is primarily engaged in the decorative surfaces industry. The company's core business operations involve the manufacturing and marketing of decorative laminates, compact laminates, and related products. In terms of its scope of operations, the company caters to business clientele from interior design, architecture, and construction.
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