Ashish Dhawan portfolio stock: Greenlam Industries posts 79% Q4 PAT growth, Board recommends dividend

Greenlam Industries is a small cap Consumer Discretionary company that recorded a market cap of ₹4,578.08 Cr during Tuesday's closing session. The stock ended on a green note after declaring impressive Q4 and FY23 results.

“In continuation to our earlier intimation dated May 27, 2023 regarding the recommendation of final dividend of Rs. 1.50/- per equity share of Re. 1 /- each for the financial year ended March 31, 2023 by Board of Directors at their meeting held on May 30, 2023 and pursuant to Regulation 42 and 60 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and applicable provisions of Companies Act, 2013 read with rules made therein, we would like to inform you that the record date is fixed as Friday, June 30, 2023 for determining the eligible members of the Company for payment of final dividend on equity shares of the Company for the financial year 2022-23, if approved by the Members at the ensuing Annual General Meeting ("AGM") of the Company scheduled to be held on Friday, August 04, 2023,” said Greenlam Industries in a stock exchange filing.

During Q4FY23, the company reported consolidated net revenues of ₹533.8 Cr up by 15.2% YoY from ₹463.4 Cr in Q4FY22. Its consolidated EBIDTA stood at ₹74.1 Cr during the quarter ended March 2023 up by 49.4% YoY from ₹49.6 Cr during the quarter ended March 2022. Greenlam Industries said its consolidated net profit reached ₹46.1 Cr during the quarter under review up by 79.7% YoY from ₹25.7 Cr recorded in the year-ago quarter.

For the year ended March 31, 2023, consolidated net revenues from operations witnessed a growth of 18.9%, at Rs. 2026.0 Cr, as compared to Rs. 1703.4 Cr in the previous financial year. The company recorded a 41.4% increase in net profit at Rs. 128.0 Cr, as compared to Rs. 90.6 Cr recorded in FY22.

Saurabh Mittal, Managing Director and Chief Executive Officer, Greenlam Industries Ltd. said, “The fourth quarter exhibited overall good business performance with revenue growing 15.2% on YoY basis. The laminate business demonstrated strong momentum with both domestic and exports growing by 11.1% and 20.9% respectively. The laminate business also grew 16.8% in volume terms. In the Veneer and Allied Segment, the decorative veneer business grew in the quarter whereas floors and doors business remained subdued. For the year, our revenue from operations surpassed Rs. 2000 crores milestone. For the quarter, our gross margins and operating margins for the quarter expanded by 390 bps and 320 bps respectively on account of softening in raw material, freight cost and higher revenue. Our return on capital employed excluding project capex (ROCE) experienced a notable improvement to 24.0% during the quarter. Additionally, sequentially the working capital days declined by 2 days and stood at 66 days for the quarter. As of March 31, 2023, our net debt stood at Rs. 312.0 crores, including Rs. 226.7 crores of debt towards our ongoing projects.”

“We have commissioned the enhanced capacity of our Prantij, Gujarat plant in May and the total laminate capacity now stands at 21.02 million sheets. We expect to start the commercial production of greenfield plywood unit at Tindivanam, Tamil Nadu in June 2023. The greenfield laminate plant and particle board plant at Naidupeta, Andhra Pradesh is expected to start production by Q2FY24 and QFY24 respectively. We remain committed to the successful completion of our projects and look forward to the positive impact they will have on our overall operations. At Greenlam, we always believe in serving our customers with top notch products and services. Our constant endeavour is to bring superior and exquisite products, which are developed using the latest industry-first technology that aid them to redefine their living spaces,” Saurabh Mittal further added.

The shares of Greenlam Industries closed today on the BSE at ₹360.50 apiece up by 1.65% from the previous close of ₹354.65. The stock touched a 52-week-high of ₹380.00 on (08/08/2022) and a 52-week-low of ₹280.00 on (03/10/2022). As per the shareholding pattern of Greenlam Industries for January to March 2023 quarter, ace investor Ashish Dhawan held fully paid-up equity shares of 48,14,210 or 3.79% stake in the company.