Greenply Inds

The day the company announced its Q2FY13 numbers, the stock hit a new 52-week high. YoY, the performance has been very good. On a 25% rise in net sales at Rs.517.21 crore, the company posted a whopping 220% rise in net profit at Rs.32 crore. Factors which have helped the bottomline apart from the rise in topline is the reduction in forex loss from Rs.11.24 crore in Q2FY12 to Rs.25 lakh. Significantly, employee benefit expense rose 11% and interest cost at Rs.15.50 crore has eaten away 26% of the EBIT.

The company has commenced commercial production of expanded capacity at Bamanbore unit at Gujarat and the expanded capacity of plywood unit is now operational. This will also start adding to its earnings from Q3 and much better from Q4.  It is planning to set up a new MDF unit at Andhra Pradesh and is currently scouting around for a site. And with rest to new value added products at its existing MDF plant at Uttarakhand, by expanding the existing capacity and introduction of laminated flooring and UV coated panels, construction work has commenced and orders for all major machineries have been placed. The company, at the end of H1FY13 had a net profit at Rs.50 crore and this is almost equivalent to its 12MFY12 net profit at Rs.53 crore. This most certainly means that the company is sure to end the current fiscal on a much higher note.