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Greenply Industries Q4 Review - Margins Disappointment: ICICI Securities

Greenply Industries Q4 Review - Margins Disappointment: ICICI Securities

<div class="paragraphs"><p>Decorative veneers manufactured by Greenply Industries Ltd. (Source: Company website).</p></div>
Decorative veneers manufactured by Greenply Industries Ltd. (Source: Company website).

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ICICI Securities Report

Greenply Industries Ltd. has reported better than expected consolidated revenue growth of 13.1% YoY with standalone India plywood business growing at 15.3% YoY (volume growth of 7.9% YoY).

Consolidated operating margin fell 154 basis points YoY to 9.9% primarily due to higher other expenses resulting in Ebitda declining by 2.1% YoY.

Greenply Industries' management believes demand outlook is healthy and targets India plywood revenue growth of 15% YoY (10-11% volume growth YoY) in FY23 with ~100 bps margin improvement.

Medium density fibre capacity expansion is on track and is expected to commence production from March 2023. We cut our profit after tax estimates for FY23E by ~5% due to lower operating margin guidance.

Click on the attachment to read the full report:

ICICI Securities Greenply Q4FY22 Results Update.pdf

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