Latest news with #EPCG
Yahoo
03-06-2025
- Business
- Yahoo
Century Plyboards (India) Ltd (BOM:532548) Q4 2025 Earnings Call Highlights: Strong Revenue ...
Release Date: June 02, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Century Plyboards (India) Ltd (BOM:532548) reported a year-on-year revenue growth of 13% on a consolidated basis for Q4 FY25. The plywood segment is performing well, with a revenue increase of 9.8% year-on-year and an EBITDA margin of 15.4% for the quarter. The company's Andhra Pradesh facility is scaling up, expected to support sales growth in the laminate segment. MDF segment revenue grew by 37.5% with an EBITDA margin of 13.2%, indicating strong performance. The company is optimistic about future growth, with plans to expand capacity in the plywood and laminate segments. The particle board segment is under pressure, with a revenue decline of 23.2% in Q4 and an EBITDA margin of only 5.6%. The laminate segment faced margin pressure due to higher schemes and increased sales overheads, resulting in a standalone EBITDA margin of 5.6%. There is significant overcapacity in the MDF market, leading to pricing pressure and reduced margins. The company has seen a significant jump in inventory days, impacting working capital. Export margins are under pressure due to substantial pricing pressure in the international MDF market. Warning! GuruFocus has detected 7 Warning Signs with BOM:532548. Q: Can you provide details on the EPCG scheme benefits for the MDF plant and the export obligations? A: The EPCG benefits can be availed over six years, with export obligations ranging from INR 150 crore to INR 400 crore, depending on GST considerations. Export viability varies annually, and we are currently exporting to the Middle East, although pricing pressures have limited volumes. Unidentified_5 Q: Are there any expected price changes in the MDF segment? A: We anticipate price hikes in MDF, but it's too early to confirm. We expect some price increases towards the end of the year. Unidentified_5 Q: What is the current capacity and future expansion plans for the plywood segment? A: The current capacity utilization is about 90%. We plan to add 48,000 CBM at the Huharur plant in the next 15 months, with additional expansions planned for other facilities. Unidentified_6 Q: How do you view the opportunity for Indian laminate manufacturers in the global market? A: India remains a favorable destination for laminate exports due to labor cost advantages and manufacturing efficiency. We have been white labeling for international brands, and the opportunity in compact laminates is substantial. Unidentified_5 Q: What are the reasons for the decline in particle board segment revenue and margins? A: The decline is due to increased timber costs and stagnant realizations. Overcapacity and imports have pressured prices. The new plant in Tamil Nadu is expected to improve margins with lower production costs. Unidentified_5 For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
Greenpanel Industries Ltd (BOM:542857) Q4 2025 Earnings Call Highlights: Strong Export Growth ...
Release Date: May 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Export volumes increased by 34% year-on-year, indicating strong international demand. Domestic MDF realizations rose by 7.4% due to a higher mix of value-added products. Export realizations improved by 9.6% year-on-year, reflecting better pricing strategies. The company expects a 35% volume growth with the new production line, indicating potential for increased market share. Implementation of BIS QCO from February 2026 is expected to boost demand for MDF and plywood. Domestic sales volumes fell by 25% year-on-year due to discontinuation of commercial grade MDF. Plywood volumes decreased by 12% year-on-year, indicating challenges in that segment. Post-tax profits for the quarter decreased by 1% compared to the previous year. Gross margins fell by 900 basis points to 46.9%, indicating increased cost pressures. Net working capital increased by 8 days year-on-year due to lower turnover and high inventory levels. Warning! GuruFocus has detected 5 Warning Sign with BOM:542857. Q: How do you plan to ramp up capacity utilization at the Andhra Pradesh plant, and what impact will this have on costs? A: We expect about 11-12% growth in volumes from existing lines and anticipate 72,000 cubic meters from the new line, leading to a 35% overall volume growth. This should help manage costs effectively. - Managing Director Q: Can you explain the EPCG incentives and their impact on future quarters? A: The total EPCG incentive is about INR 86 crores, with INR 35 crores accounted for in FY25. The remaining INR 51 crores will be recognized over FY26 and FY27, proportionate to sales. - CFO Q: What is the current status of MDF imports in India, and how do you see this trend evolving? A: Imports have significantly decreased, with April figures around 1,100 cubic meters. We do not expect a significant increase in imports moving forward. - CFO Q: What are the expected margins for the export business, and how did they perform in Q4? A: Export volumes are expected to be around 80,000 cubic meters, with Q4 margins at approximately 1.75%. We anticipate improved margins due to better product mix and potential currency benefits. - CFO Q: How do you foresee the demand and supply dynamics for MDF in South India? A: There are about 3-4 MDF manufacturers in South India, with a total supply of approximately 1.3 million cubic meters. Around 35-40% of domestic demand is from South India, and we expect to capture a significant market share due to limited new capacity additions. - Managing Director For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Standard
23-05-2025
- Business
- Business Standard
Greenpanel Inds Q4 PAT falls 1% YoY to Rs 29 crore
Greenpanel Industries reported a 1.41% decline in net profit to Rs 29.39 crore on a 5.56% drop in net sales to Rs 374.51 crore in Q4 FY25 over Q4 FY24. The decline was primarily driven by lower revenue and weaker margins. The subdued performance was primarily due to lower MDF volumes and a drop in realizations, impacting revenue and profitability. Segment-wise, MDF (Medium-Density Fibreboard) sales dropped 15.3% YoY to Rs 305.17 crore, while plywood sales declined 5.3% YoY to Rs 33.77 crore. MDF sales volumes fell 19.9% and plywood volumes declined 12% during the quarter. Despite weaker volumes, the EBITDA margin improved to 15.9% in Q4 FY25 from 14% in Q4 FY24, supported by government grants under the EPCG scheme and lower provisions for turnover discounts. Profit before tax (PBT) declined 26.22% YoY to Rs 29.71 crore, compared to Rs 40.27 crore in the same quarter last year. As of 31 March 2025, net debt stood at Rs 165 crore, which includes Rs 336 crore earmarked for ongoing expansion projects. Working capital investment increased by 8 days YoY to 36 days. Managing director & CEO, Greenpanel Industries, said, MDF domestic volumes in Q4 fell by 25% y-o-y. MDF EBITDA margins for Q4 at 16.3% were higher due to government grants under the EPCG scheme. We maintained working capital discipline in a challenging quarter with net working capital at 36 and debtors at 11 days of turnover MDF domestic sales volumes for Q4 fell by 25% YoY. MDF EBITDA margins for Q4 at 16.3% were higher due to government grants under the EPCG scheme. Plywood volumes for Q4 were lower by 12.1% y-o-y. Ebitda Margin were higher due to lower provision for turnover discounts at the year-end since many dealers could not achieve volume targets Widening distribution reach, increasing domestic volumes and proportionon of value-added products, increasing the Greenpanel brand value, and increasing plantations will be our major focus areas in future quarters. On a full-year basis, the company's net profit declined 46.68% to Rs 72.11 crore on an 8.38% rise in revenue to Rs 1,435.77 crore in FY25 over FY24. Greenpanel Industries is India's largest manufacturer of wood panels. Its manufacturing plants in Uttarakhand and Andhra Pradesh make medium-density fiberboard (MDF), plywood, veneers, flooring, and doors. Shares of Greenpanel Industries rose 2.59% to Rs 259.20 on the BSE.
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Business Standard
12-05-2025
- Business
- Business Standard
Retail sets must be classified according to their essential characteristics
Firstly, the brush you supply has no stand-alone utility or commercial value since it can be used only as an accessory for applying the hair-dye Listen to This Article We make and export hair-dye for applying on human hair. Invariably, we supply a brush along with the hair-dye. The invoice is made for the hair-dye only. Now, we want to import a machine for making the brush under the EPCG (Export Promotion Capital Goods) scheme. Please guide us on how we should work out the annual average exports and how the invoicing should be done. Firstly, the brush you supply has no stand-alone utility or commercial value since it can be used only as an accessory for applying the hair-dye. Second, Rule 3(b) of the General Rules for Interpretation
