Plyboard head Greenply Industries Ltd on Monday reported a marginal increase in consolidated net profit of 1.2 per cent to Rs 29 crore in the fourth quarter ending March 2022, compared to the same quarter last year in higher revenue. The company has faced a contraction in margins due to inflationary pressures on the spending front, which limited profits to 13 per cent jump in revenue of Rs 448.6 crore in the quarter under review.
“We have seen an improvement in demand in FY22 and have achieved a strong financial performance accordingly. However, problems with raw material inflation and availability continue to hamper growth, “said Manoj Tulsian, joint MD and CEO of Greenply Industries.
The PAT margin was 76 basis points lower at 6.5 percent in the quarter.
For 2021-22, the revenue has increased by 34 per cent to Rs 1562 crore while the net profit for the year has increased by 55 per cent to Rs 94 crore. As of March 2022, the net debt stood at Rs 219.3 crore.
The company was setting up a greenfield plywood manufacturing unit in Lucknow with a capacity of 13.5 million square meters per annum. Financial closure of the project and construction activities are now complete. Commercial activity is expected to begin soon, Tulsian said. The company is setting up a greenfield MDF board manufacturing unit with a capacity of 800 cubic meters per day near Vadodara, Gujarat. Civil construction work is in full swing, the project is nearing completion, he said.