Vishwanathan Venkatramani, the Chief Financial Officer (CFO) of Greenpanel Industries, a wood panel products maker, foresees good volumes in the Medium Density Fiberboard (MDF) segment, but subdued growth for the plywood business.

Speaking about the company's outlook, Venkatramani remarked, "We had initially guided for MDF margins to be in the range of 23-25%, with plywood margins at 8%. However, we are now on track to achieve around 22-23% on the MDF side and anticipate low single-digit margins in the plywood segment."

For the second half of the year, Greenpanel Industries is targeting approximately 85% capacity utilisation for MDF and 60-65% for plywood.

Also Read

| Greenpanel Industries banks on domestic sales to maintain guidance

In the second quarter of the fiscal year 2024, he said, the company managed to maintain volume growth, achieving a 7% increase compared to the first quarter.

The company's second-quarter net sales were at ₹398.73 crore in, down 12.81% from ₹457.29 crore in September 2022. Net Profit was down 43.41% at ₹41 crore from ₹72.46 crore last year. EBITDA (earnings before interest, tax, depreciation, and amortisation) was nearly 39% down at ₹75.88 crore from ₹124.35 crore.

Venkatramani said Greenpanel initiated its branding efforts in the fourth quarter of the fiscal year 2023. The company plans to maintain advertising expenses in the range of 2-2.5% for fiscal years 2024-25. Depending on capacity utilisation, they may consider scaling these expenses in the future.

For more details, watch the accompanying video

Catch all the updates from the stock market here

First Published:Nov 3, 2023 9:23 AM IST