Greenply Industries

Greenply Industries is Indias largest interior infrastructure company, which is engaged in manufacturing of plywood, particleboard, laminates and decorative veneer. The company arranged an analyst meet on 13 June 2007 to discuss the financial performance for the year ended March 2007 and the future prospects of the company.

Financial Highlights:

• For quarter ended March 2007 the topline of the company increased by 67% to Rs 121.45 crore compared to corresponding previous period. The OPM improved by 290 bps to 10.9% due to strengthening of Rupee against Dollar. The companys bottomline increased by 78% to Rs 6.71 crore in the quarter ended March 2007.

• For year ended March 2007 the topline of the company increased by 54% to Rs 429.23 crore compared to previous year. The OPM improved marginally by 20 bps to 10.8%. The companys bottomline increased by 60% to Rs 22.52 crore in the year ended March 2007 compared to previous year.

Other Highlights:

• The company expects a cumulative annual growth rate of 35% in its topline for next two to three years with effective tax rate in the range of 18-20%.

• The total debt of the company as on 31 st March 2007 stood at Rs 146 crore.

• The company implemented SAP in FY 2007 at a cost of Rs 3 crore.

• The companys realizations for laminates increased by 11% to Rs 406 per sheet for year ended March 2007 compared to corresponding previous year and for plywood it increased by 20% to Rs 160 per sheet.

• The company increased its dealer/ distributor/Sub dealer/ Retailers network to 7100 during FY 2007 from 3700 in FY 06.

• The company has proposed registration of the Uttarakhand facility with the United Nations Framework Convention on Climate Change, raising a lucrative carbon credit trading opportunity.

• The company has a largest market share of 25% in plywood and 15% in laminates in the organized market.

• The companys expenditure on advertising and promotion increased by 43% to Rs 14.94 crore in FY07 compared to Rs 10.45 crore in FY06.

• The capacity utilization for plywood division stood at 77% whereas for laminate division it stood at 115%. The company plans to enhance production from its plywood units and achieve capacity utilization in excess of 90%.

• The working capital during FY 07 came down to 43 days from 72 days in FY 06.

• Exports formed 8.32% of the total revenue in FY 07. The company is setting up a Singapore office to cater to the growing ASEAN interior infrastructure market.