{"id":182140,"date":"2026-04-30T03:21:49","date_gmt":"2026-04-30T07:21:49","guid":{"rendered":"https:\/\/alphastreet.com\/india\/greenply-industries-ltd-greenply-q4-2026-earnings-call-transcript\/"},"modified":"2026-04-30T03:29:31","modified_gmt":"2026-04-30T07:29:31","slug":"greenply-industries-ltd-greenply-q4-2026-earnings-call-transcript","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/greenply-industries-ltd-greenply-q4-2026-earnings-call-transcript\/","title":{"rendered":"Greenply Industries Ltd (GREENPLY) Q4 2026 Earnings Call Transcript"},"content":{"rendered":"

Note:<\/strong> This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.<\/em><\/p>\n

Greenply Industries Ltd (NSE: GREENPLY) Q4 2026 Earnings Call dated Apr. 30, 2026<\/span><\/strong><\/p>\n

Corporate Participants:<\/h2>\n

Sanjeev<\/strong> \u2014 CFO<\/em><\/p>\n

Sanidhya Mittal<\/strong> \u2014 Joint Managing Director<\/em><\/p>\n

Analysts:<\/h2>\n

Karan Bhatelia<\/strong> \u2014 Analyst<\/em><\/p>\n

Utkarsh Nopany<\/strong> \u2014 Analyst<\/em><\/p>\n

Unidentified Participant<\/strong><\/p>\n

Sneha Talreja<\/strong> \u2014 Analyst<\/em><\/p>\n

Unidentified Participant<\/strong><\/p>\n

Unidentified Participant<\/strong><\/p>\n

Bhavik Bhavsar<\/strong> \u2014 Analyst<\/em><\/p>\n

Presentation:<\/h2>\n

Operator<\/strong><\/p>\n

Ladies and gentlemen, good day and welcome to Greenply Industries Limited Q4FY26 earnings conference call hosted by Asian Market Securities. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touched on phone. Please note that this conference is being recorded. I now have the conference oath.<\/p>\n

Mr. Karan Bedelia from Asian Market Securities. Thank you. And over to you sir.<\/p>\n

Karan Bhatelia<\/strong> \u2014 Analyst<\/em><\/p>\n

Good morning. All participants log into the call on behalf of Asian Market Securities. We welcome all to green price fourth quarter and FY26 investor call. From the management side we have Mr. Mano Tulsian, joint managing director and CEO Mittal, joint managing director and Mr. Sanjeev CFO. I would like to hand over this call to Manoji for his opening remarks post which we can open the floor for Q and A. Thank you and what do you. Manoj.<\/p>\n

Sanjeev<\/strong> \u2014 CFO<\/em><\/p>\n

Yeah, hi, this is Sanjeev. I would like to just highlight that Mr. Manoj Tubsian is not attending the meeting and Mr. Sanit Mittal, the JMD of the company is addressing today. Thank you. Hand over to Mr. Sanid. Mr.<\/p>\n

Sanidhya Mittal<\/strong> \u2014 Joint Managing Director<\/em><\/p>\n

Thank you, Sandeep. Thank you Karan. Good morning everyone. It was a pleasure to have you all on the call today. As we close this year on a strong and positive note. In line with our growth guidance, we are carrying that momentum forward into the current year with even greater ambition and focus on growth. We have seen a strong start to Q1FY27 and we remain confident on sustaining this trajectory supported by an improvement in margins before update. Providing an update on Greenply’s operating and financial performance for Q4 and FY26, I would like to address and give few updates.<\/p>\n

First, on our leadership team. As recently shared in our regulatory filings, Mr. Manoj Tunsian has submitted his resignation as JMD and CEO of the company. Manoji has decided to step down from his executive responsibilities to prioritize his personal commitments on behalf of the Board of Management and the company. I want to express our deepest appreciation for his leadership over the last six years to ensure a seamless transition. We are pleased that Manoji will continue his association with the company in an advisory capacity.<\/p>\n

Second, a search and Caesar operation conducted by Income Tax Department at certain business premises of the company from 26 February 2026 to 2 March 26 as on date, no order, no notice of demand or penalty order has been received by the Company for the Fed proceeding. The matter presently at a preliminary stage and to assess any possibility impact of the financial statement of the Group is not possible at this moment and there’s no such demand. Thirdly, during the quarter we conducted a thorough review of our internal exposure significantly pertaining to our entity in Dubai.<\/p>\n

In light of the prevailing geopolitical environment where which has adversely impacted the recoverability of certain assets, we have chosen to take a conservative approach. We have disclosed a total of 15.16 crore as an exceptional item representing impairments to our investment financial guarantees and advances to gmel. This one time adjustment is a proactive measure to safeguard our financial integrity and does not impact our underlying operating cash flow or long term growth strategy. With this all or any potential liability on invested equity, corporate guarantees or any types of loan advances have all been totally provided for in the books.<\/p>\n

Now I would like to share some perspective on the ongoing geopolitical crisis and their impact on the Company. As you are aware, across both our segments we have certain degree of dependence on imported raw materials, particularly timber and chemicals. During the early part of the quarter, the evolving geopolitical situation posed challenges in sourcing chemicals leading to a sharp increase in prices by over 50%. Additionally, elevated fuel charges and war risk insurance premiums have created a volatile and a high cost environment for logistics.<\/p>\n

The impact was pronounced in the MDF segment where chemicals constitute nearly 30% of the raw material cost. To mitigate the cost pressure and protect margins, we implemented calibrated price increases of 5% and 10% effective from April. In the plywood segment the impact was relatively lower and the price revisions were in the range of 4 to 5% during the same period. Having said that, at the same time we are actively evaluating opportunities to source chemicals domestically with the aim of reducing our reliance on imports.<\/p>\n

While prices remain elevated, they have stabilized and not expected to rise further. We continue to remain proactive in optimizing our sourcing strategies to ensure efficiency and supply continuity. Let me now turn our operating and financial performance for Q4 and full year of FY26. I’m happy to share that Greenply Industries has successfully delivered on its H2 FY26 guidance, achieving double digit year on year growth in both volume and value across its business segments. In Q4 FY26 consolidated core EBITDA margins improved to 12% reflecting a strong expansion of 330 basis points over the previous quarter.<\/p>\n

We are proud to report our highest ever consolidated quarterly revenue of 776.2 crores which is a growth of 19.6% on a YoY basis. Our consolidated core EBITDA for The quarter was 93.2 crores with a core EBITDA margin of 12% compared to 10.5% in Q4 FY25 and increase of 150bps on 12 months. This is our consolidated revenue was 2739 crores which is a growth of 10.1% on a Yo by Y basis. Our consolidated core EBITDA was 270.5 crores which is a growth of 13.8% on a YoY basis. The core EBITDA margin was 9.9 as compared to 9.6 in 12 month FY25 PBT before the losses on equity accounted investee Foreign exchange gain loss as an adjustment to finance cost and exceptional Items is at 186 crores for 12 month FY26 which is a 21% YoY growth as against PBT of 153 crores and 12 month FY25.<\/p>\n

Let me now share the highlights of our individual business segments. In the Plywood segment we have achieved volume growth of 15.6% on a Y basis in Q4 FY26 with a revenue of 588.5 crores value growth of 14.6% on a year Y o Y basis in line with the growth expectation on the margin front our core EBITDA margin stood at 10.4% for Q4FY26 an improvement of 120 basis points on a yoy basis. On 12 month basis we’ve achieved a revenue of 2105.7 crores which is a growth of 7.5% on a yoy basis. Our volume growth on 12 month basis is 8.3% on yoy basis.<\/p>\n

Our core EBITDA is 11.7% on yoy basis to rupees 185.4 crores in 12 month FY26. Our EBITDA margin stood at 8.8 as against 8.5 in 12 month FY25. Moving to our MDF business we have achieved our highest ever quarterly revenue of 189.4 crores with a volume reaching to 62,000 CBM. That reflects strong year on year growth of 39.6% in value and 45.3% in volume terms. Margins for the quarter stood at 17% supported by higher sales and operating leverage. For the full year we have achieved a revenue of 635.6 crores reflecting a yoy growth of 19.9% with margin at 13.4%.<\/p>\n

Moving on to our furniture and fittings JV, we have achieved sales of 12.99 crores in Q4FY26 and a total revenue of 44.27 on 12 month basis. The JV reported a PAT loss of 13 crores in Q4FY26 with our share of loss amounting to 6.5 crores and on a 12 month PAT loss at 50.8 crore with our with our share of loss amounting To 25.4 crores. This year marked the brand’s initial establishment phase requiring significant investment. However, we are encouraged by the strong ramp up and expect the business to grow exponentially.<\/p>\n

Now I would like to provide an update on the progress of our CAPEX initiatives undertaken last year. We are pleased to share that the commercial production of the PVC and WPC plant has commenced from April 26 with an annual installed capacity of 6 million kgs for door and 3 million kgs for door frame. With respect to our new MDF facility, civil construction is currently underway and orders for key machinery has been placed. We remain on track to operationalize the facility as per our planned timelines.<\/p>\n

Construction of the plywood facility is progressing at full pace with all major orders already been placed and the project remains on track. Despite the growth CapEx undertaken, our consolidated net debt stood at 461 crores at the end of the current quarter. Our debt to equity ratio remains at 0.52 in line with our guided range of 0.5 to 0.6 for the year. Even after the announcement and execution of the planned capex, the Board of Directors recommended a dividend at the rate 50% which means 50% per equity share for the year ended 31st March 2026 which is subject to the approval of shareholders of the company at the annual general meeting.<\/p>\n

Our strategic roadmap for the remainder year is clear driving volume while protecting our bottom line. We have set a volume 10% growth target for plywood backed by our strong brand equity in mdf. We are capitalizing on rising demand and confident in delivering 25 to 30% volume growth. Despite the competitive landscape, our focus remains on operational excellence ensuring that our EBITDA margins remain consistent with our recent performance. With this, I would like to open the floor for Q and A session.<\/p>\n

Thank you.<\/p>\n

Questions and Answers:<\/h2>\n

Operator<\/strong><\/p>\n

Thank you Very much. We now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchdown telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles participants. You may press star and one to ask a question. The first question is from the line of Pankaj Tabriwal from asset ad managers.<\/p>\n

Please go ahead.<\/p>\n

Sanjeev<\/strong><\/p>\n

Good morning sanity and team and congratulations on excellent set of numbers. Just two questions. I have one on the margins of MTF compared to what we saw with other players, clearly the delivery has been excellent and this is before the price increases have happened. So can you take us through your thought process on how sustainable these margins are? Because last year first half we kind of struggled from the margin perspective across the board and second also on the plywood side after long we have seen a double digit margin trajectory and when we speak to the distribution on the ground on the lower end brand Ipotex on the other side earlier we were hearing about a lot of quality related issues.<\/p>\n

Now that has substantially come down over the last six, seven months. Is that also helping you on the volume and the margin side? So two questions. One on the NDF margins, how do you see it going forward? And on the plywood side is the double digit margin sustainable and the quality issues on the lower end band behind us and how we are ramping it up. Thank you.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

So on the MDF front I think these margins are sustainable and you are absolutely right that this margin was achieved by before the price rise. I think the reason we were able to achieve this was purely the incremental volume that we had achieved in terms of production and sales. Our fixed cost remained the same post our line post the extension while the operating leverage ticked in. That is the only the reason why we were able to achieve this kind of margin. Obviously the timber, the local scenario of the market, the proportion of the value added sales and the sales mix, all of this also helps us to achieve the same.<\/p>\n

And going forward we are very confident because the cost increase already passed on to the consumers and in spite of the cost pass on we still see a demand. So we are very confident in terms of our guidance going forward in MDS whether we on the bottom line and the top line.<\/p>\n

Sanjeev<\/strong><\/p>\n

Fantastic. Thank you.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

On the plywood I think we are doing a lot of fundamental changes in our in the way we are producing plywood. So in we have four of our existing Facilities. In two facilities the new change is already implemented and in two facilities the change will be implemented during the current financial year. So this not only improves the cost, it also improves the quality in a drastic way. So yes there has been changes and improvements further in quality. See it’s a very natural product and you know any plywood can be said that this is very bad quality or this is very good quality.<\/p>\n

It’s also the perception. So. But yes we have made changes which will help us achieve both top line and bottom line. And with our, you know, with the initiatives that the company is undertaken and with the strategy if we are able to maintain the growth rate in plywood this margin can easily be insured. So this margin is there because of the growth rate and the operating leverage there also. So yes we have to maintain this growth rate and with this growth rate this margin is absolutely possible and we can further improve the margin in H2 of this year after the new process is implemented in all our plants because new process will also improve cost to a certain extent.<\/p>\n

Sanjeev<\/strong><\/p>\n

So is it fair to say that on a console basis, the exit quarter, March quarter, on an overall basis the margins should be the new norm for green ply going forward because as you say that plywood margin sustainable, MDF margin sustainable 1 of<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

The. Absolutely, absolutely right, Absolutely right.<\/p>\n

Sanjeev<\/strong><\/p>\n

That’s very heartening to know. And just the last question on the balance sheet I must compliment that after the significant capex debt has come at 4,450crores up near about and what you guided at the start of the year from here on how should we think about from a balance sheet perspective from a capex and the cash flows which you will generate, do we see further deleveraging or the debt level? Stay here and you next level of capex.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

So currently we anyways have a big capex which is our MDF plant which is almost 400, 425 crores of capex and we also have the improvement or the new, the new technology implementation cost of the plywood plant and the Odisha capex. So with all of this given in place and our cash flows given in place maybe for one year we might take out to maybe 0.7 or 0.72 debt equity and then again we come back in the range of 0.5 to 0.6 the following year itself. So that is our outlook because we don’t want to increase the debt substantially further.<\/p>\n

So yes we definitely have a lot of aspirations to invest more and grow. But yes, keeping our balance sheet in mind, keeping the overall debt Equity in mind. So 0.7. 0.7 is the peak we want to go to and then again come back to the 0.5 level and then depending on opportunity then decide whether we want to continuously deleverage or continuously invest.<\/p>\n

Sanjeev<\/strong><\/p>\n

Fantastic. And last three years we have been seeing one offs every, you know, years either be Gabon or Forex or whatever. Is it fair to say all these one offs are now behind us in terms of command right off and all the measures we need to take on the international and the other side. Is it fair to say that all these one offs are behind or you foresee for the challenges on that side?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I don’t see any challenges on that side. And I had mentioned in my opening remark also very clearly with this, all the potential liability on invested equity, corporate guarantees and other types of loan advances have been totally provided for in the books.<\/p>\n

Sanjeev<\/strong><\/p>\n

Okay, that’s. That’s good to know. Wish you all the best and very heartening to see Green fly coming back to its original form. Thank you.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Thank you. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead.<\/p>\n

Sanjeev<\/strong><\/p>\n

Hi sir, thank you for the conduct on a great set of numbers. First thing I want to understand in Q4 whether you know the volume growth was positively impacted because of higher channel inventory because price hikes were came in coming in April. And secondly you highlighted, you know, Q1 FY20. Sorry I said Q. I mean Q4 the volume group was due to higher channel inventory also. And secondly you highlighted Q1 FY27 has started on a good note. By good note you mean maybe whatever you did in Q4 the similar continues in Q1 also.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Yeah. So I think I will not totally disagree to your statement. Yes, there might be little bit of the growth because of overstocking also and the stocking only happened in the second half of March. So two and a half months of the quarter was a regular quarter first of all. Second of all, what we saw fundamentally was a shift from unorganized to organize. Because what happened when this, when the raw material started going crazy, everyone including importers of chemicals, including raisin suppliers wanted payment like today for supply of today.<\/p>\n

So in that entire cycle a lot of unorganized plywood players shut down. A lot of the smaller MDF players had issue they were hand to mouth in terms of capital or in terms of cash flow. So this disrupted a lot of smaller companies which we see the disruption even today. I think that shift, that fundamental shift is also a reason why the branded Segment or our segment. Got the growth obviously with the background strategy also to grow in plywood and mdf. So yeah, it’s a mix of all three reasons.<\/p>\n

Sanjeev<\/strong><\/p>\n

Understood. Got it. Can you give some sense about, you know, what is the MDF industry demand for FY26? How has the capacity increased in FY26 and how will you know capacity increase in upcoming years? What sort of utilization we are seeing at industry level?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think industry level things are changing very fast. It’s very difficult to give you the latest update. Because in the last two, three months there’s a lot changed. I think some of the smaller players are shut. Import is totally wiped out because of the dollar and the freight situation. I think exports have also been very difficult because of the freight. So I think to give a current industry scenario for me will be very difficult. But as far as we are concerned, we have a very small capacity compared to the country.<\/p>\n

I think at full capacity, if we run our factory we only can gain 8% market share. So as far as our brand is concerned, I think the Runway is clear for us. For next two, three lines to sell and to produce. We will not have any challenge. We just have to keep our balance sheet right and keep growing.<\/p>\n

Sanjeev<\/strong><\/p>\n

Got it. Last two questions from my side. One is MDF price hike total is 15%. I heard it right. And secondly on income tax. So what was the reason for the rate? Why the department have conducted it? Because we hear, you know, it was a distributed level also. And it went on for a few days. So what was that? So<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think it was a rail which was conducted on green ply, green and green panel. The reason is obviously not known to us that why this happened. We had clearly filed in our disclosure and in the audit report. The auditors also clearly mentioned that there is no liability on the company. And there was nothing seized from our premises in terms of documents or cash or any such thing. So as of now the company and the books of accounts are clear. If there is any liability or any such update, we will keep the exchange and the investors absolutely updated with it.<\/p>\n

And we feel that, you know, it was a total wrong intel why this happened.<\/p>\n

Sanjeev<\/strong><\/p>\n

Understood. Got it. The MDF total price hike is 15% in April. Right?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Right.<\/p>\n

Sanjeev<\/strong><\/p>\n

Okay. Thank you. That’s it.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Next question is from the line of Utkarsh no Pani from Anandrati. Please go ahead.<\/p>\n

Sanjeev<\/strong><\/p>\n

Yeah. Hi. Good morning, sir. So my first question is regarding on the margin side in the March quarter. So for MDF segment if we see our realization fell by 3% on a quarter quarter basis. But still our gross margin has improved by roughly 530 bids. So what is the reason for such big swing in in the March quarter?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

So if you see, if you compare the previous quarter and the March quarter, I think the total volume produced has drastically jumped up. So in the same factory and the same fixed cost, when the volume goes up drastically, I think the operating leverage kicks in. That is why.<\/p>\n

Sanjeev<\/strong><\/p>\n

So my question is regarding the gross margin, not at the beta margin. Sir,<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think Sanjeev Ji, you can explain this.<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

Yes, it’s the same thing. If the EBITDA margin will increase, the growth margin will also increase. That is the operational leverage that the 15.6% increase in the volume in the plywood. It’s given a very good growth margin on that.<\/p>\n

Sanjeev<\/strong><\/p>\n

Sir, for MDF segment, I was asking. So sir, like I will ask in another way, like our MDF gross margin has been very volatile over the last say 8\/4. Sometime it goes up to around 55%. Sometime it goes down to 45%. So can you please explain the rational that why it is so volatile and whether it is going to continue going forward. Also the volatility,<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I don’t think it is going to be volatile going forward. In the past. See if you see the last financial year, 2\/4 out of the 4 quarters, the plant was not fully operational. Q1 was a normal quarter and Q4 was a normal quarter. Q1 was a normal quarter. With the line unextended and Q4 was a normal quarter, the line extended. The quarter 2 and quarter 3 got disrupted because of the line extension that we did. So the reason why there’s a fluctuation in margin is also that. And plus you know another reason why the gross margin changes is also the mix change, right?<\/p>\n

So it depends that the same cubic meter that we’ve sold, what mix we’ve sold. So if we sell more of the HDMR segment, the company definitely makes more margin than we would make selling interior products<\/p>\n

Sanjeev<\/strong><\/p>\n

Margin. Considering the current raw material cost and the realization what should be the sustainable cross margin,<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think we can consider Q4FY26, which is the current quarter that we’ve just finished. I’ve just as the base and I think we have to, you know, deliver margins at this level.<\/p>\n

Sanjeev<\/strong><\/p>\n

Okay. And so now for the plywood segment, what we have seen that our gross margin has contracted by say roughly 80, 90 bids on a Y o Y basis. And it has also gone down on a Q1Q basis. So can you please explain what was the rational for the same. This is the reason of the product mix only. Okay. And sir, like we have seen pretty strong demand for plywood in the March quarter. But then also our ad spend has gone down substantially on a y o y basis. So what was the thought process behind curtailing down our ad spend in the March quarter?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I don’t think there was any thought process in curtailing. It must just be the, you know the annual cost of maybe varies from quarter to quarter and the auditor is very particular that you know whatever spend is there has to be debited in a particular quarter. So maybe the campaign burst happened in previous quarters and March was just a spillover regular expense. It wasn’t a new campaign or a new spread. And the amount, absolute number if you see on an annualized basis in crores is absolutely the same.<\/p>\n

There’s no change.<\/p>\n

Sanjeev<\/strong><\/p>\n

Okay. And sir, lastly on the capex front, sir, you have guided that we are planning to spend around 425 crore on our planned growth capex. So can you please provide a split how much it would be in FY27 and how much it would be in FY28. That’s it. From my side, sir,<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think 425 crore was only on the MDF segment out of which I think Almost close to 300 would be in the current FY and 125 would be in the next FY.<\/p>\n

Sanjeev<\/strong><\/p>\n

And apart from MDF any other in FY20<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

We have certain improvement projects taken up in the plywood segment to change the technology of manufacturing. And also we have Odisha plywood, the new plant. So in the plywood segment on Odisha ply the total cost will be around 130 crores for ISA plywood and all the other plywood improvements would be around 4550 crores. All plants put together.<\/p>\n

Sanjeev<\/strong><\/p>\n

Okay, so like if I understand correctly so 300 crore we are going to spend on MDF in FY27. Another 130 crore on plywood because it is likely to get commissioned in this fiscal year. And 45 to 50 crore on maintenance capex. So all put together roughly 480 to 500.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

This is the<\/p>\n

Sanjeev<\/strong><\/p>\n

Capex that we’re doing to change the technology of plywood production.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

It was already implemented in the last fiscal year in two plants, two more plants. The technology will be implemented this year.<\/p>\n

Sanjeev<\/strong><\/p>\n

So roughly sir, 480 crore we are going to spend in FY27. Is that correct, sir?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Almost. Yes. Almost. Yes.<\/p>\n

Sanjeev<\/strong><\/p>\n

Okay. Thanks a lot sir. Thank<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

You.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Next question is from the Line of Ritesha from Investec India. Please go ahead.<\/p>\n

Sanjeev<\/strong><\/p>\n

Yeah. Hi. First, congratulations on a good set of numbers. Thanks to Manoji for his guidance and learnings for all the years. Coming to the question, sanity for you. How should we look at the management transition? And besides Manoji also what we see is there have been a lot of changes within HR IT marketing off late or last six months. So how should we read into this isn’t some change in game plan? So that’s the first question.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

So I think more so see people come, people go. And as far as Manoji is concerned, you know, he’s already, you know, still part of the company in a advising capacity. You know, so he will be an advisor. And it was his decision because of his, you know, personal needs that you know, he wanted to take some time out and be not an active day to do a role but as an advisor to the organization. So that is the reason why he stepped down. And I think going forward, every business already has its respective, you know, sales hierarchies in position.<\/p>\n

All the plants have their plant hierarchies in position. It HR marketing. Like you know, all the support functions have their heads in place. So you know, whether it was Manoji or me or my father, the chairman, we were guiding people at a strategic level. You know, we were not driving things on a daily basis. So as far as the growth going forward is concerned, I think the team is already in place. Team will run the show. And at any level if we feel that, you know, we need, we need the full time replacement because Manoji is moving out of the organization, that will also be considered.<\/p>\n

But most importantly for us to understand and know is that to get anybody at critical level or at this level, it’s not very easy to find. So yes, we are open. At some point we might bring in somebody at his level but not immediately because there’s nobody that we have in mind at that level today<\/p>\n

Sanjeev<\/strong><\/p>\n

That helps. Would you like to highlight specifically on the changes on the marketing level? I understand we have had somebody very senior from Bud Light. What transpired this hiring or was it somebody moving out and we just replaced him. Any change in thought process on the marketing and sales?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

So marketing, I don’t think we have anyone from Pedal. I think at sales we have someone who had joined us from Pedalite. The previous gentleman was actually retiring. So you know, that was the reason of change. And we wanted to bring young and we wanted to bring somebody from an organization that we look up to. We want Greenplay to Become like, so which other organization in our segment could we have hired other than the next employee of Pendulite? That is the reason.<\/p>\n

Sanjeev<\/strong><\/p>\n

That’s great. And my second question was on working capital. If we look at the receivable days, it has actually increased inventories. I presume it was year end plus because of Iran. I think we could have liquidated inventory. But how should we look at the increase in receivables on a year, on year basis?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think a little bit of the increase could have also happened because of the highest ever numbers that we met and the balance. One second, just look at the number and give you exact.<\/p>\n

Sanjeev<\/strong><\/p>\n

I’m referring to number of days.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Okay, Referring to number of days. Yes, it is an increase, you’re absolutely right. From December 25th we’ve gone up by three days. So I think 47 to 54. It is a mix, you know. And our OEM business is also now growing drastically even though the payments are protected in terms of LC and other instruments. But the better days are much higher there to achieve growth. So, you know, to achieve growth we’re also doing certain B2B sales, which is OEM. And also there’s a fundamental shift from project business and routine trade business to furniture being made in furniture factories.<\/p>\n

And because of mdf, the exposure of the organization has become very high in that segment. So the same team is pumping in plywood and MDF includes. So maybe slightly the days have gone up because of that, but the payments are totally protected in terms of lc.<\/p>\n

Sanjeev<\/strong><\/p>\n

Sure. This is quite useful. Thank you so much and all the very best. Thank you again. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Next question is from the line of Maitricia from Sapphire Capital. Please go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah, Good morning. Am I audible?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Yes, please.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah. Hello. So a few questions firstly on the margin side. So for the quarter four, we saw a very stagnant growth in the EBITDA margins for MDF and plywood. So do you see those margins sustaining for the next half of the year or like the FY27 to FY28 with also increasing cost coming in because of raw material. And you did mention you want to pass them on, but how do you see them kind of balancing<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

On MDF? We are not worried about the margins. I think 17% is something we can sustain because whatever cost has increased, we’ve already passed on. And in the increased passed on cost, I think we are still able to do the volumes that the company requires to do so in mdf. We are confident that, you know, this margin can sustain. And on plywood Also I think this margin can easily sustain provided we are able to achieve the desired volume growth that we’ve targeted. This margin in plywood only kicks in once the volumes are achieved.<\/p>\n

So whatever margin we’ve been able to deliver is purely on account of volume. So if the volume guidance is achieved then we will 100% hit the plywood margins as well in H2 slightly we’ll get a tailwind in plywood once the new technology is implemented in all facilities. Slightly on the cost side we’ll start getting an advantage which is not there at the moment. That advantage might kick in in the H2 and it’s very difficult to quantify, but it will definitely help us improve the margin of.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, that is great. And secondly, you mentioned the 25 to 30% kind of growth in volume for the MDF segment. Could you quantify what growth will happen on the pre lamination part? Because I think those gross margins are much lower compared to the mdf. I think it’s<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Going to be proportionately so. You know, today whatever mix we have in prelab and plain, in that same proportion we are going to grow across all segments. So the plane proportion will also grow at the same rate. And the three lamp will also grow at the same rate. And in fact in early Q2 our flooring will also be fully operational. So that will start giving us incremental margins and higher realizations in the MDF segment for the same cubic meters hold.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

What sort of capacity do we have on the flooring side?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Almost annual top line of about 70, 75 crore. That peaks is the capacity we have.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Sorry to interrupt. Maitreya, I’ll<\/p>\n

Operator<\/strong><\/p>\n

Request to come back for a follow up question. Please.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Just one question if that’s possible.<\/p>\n

Operator<\/strong><\/p>\n

Go ahead ma’. Am.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah. And any effective tax rate that you can guide for for the next fiscal year<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think. Sanjeevji, what is the effective tax rate for the organization for next year?<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

So the effective tax rate is around 20, 22%. Because we have the in the green fly on the standalone the tax rate is 22%. And in the our subsidiary companies the tax rate is around 17%. So effective it will come to around 22%.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, thank you so much.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Next question is from the line of Karan Batalia from Asian Market Securities. Please go ahead.<\/p>\n

Karan Bhatelia<\/strong><\/p>\n

Hi sir. Thank you for the opportunity. You’ve been referring to this new technology in in production plywood facilities. So can you just give us broad detail. What are you referring to? Is it to do with the productivity or is it to do with the cost savings or how do we see this technology change?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

So this technology cost and all is a outcome. But the primary objective of bringing in this technology is improving quality and making it to the global standard of plywood production number one. Number two, it is also to make plywood more ready to be acceptable by machines and not humans. So as you see, as the country is maturing or the category maturing, the business is moving into the hands of OEMs. So OEMs need a much more precise plywood than a carpenter can handle. So given all these reasons, we’ve moved into a way of producing plywood which is seen in other parts of Southeast Asia, mainly Vietnam and China.<\/p>\n

We are calling this internally a Conti roll technology. Where there’s a Conti assembly table and there are people standing on both sides and they continuously keep assembling and the material keeps getting cut and keeps getting stacked and entering the pre press and thereafter the process is regular. But this saves overall manpower cost material as well as improves the quality drastically. So much so that you know, you can even pre lamp the plywood right after the fly is made directly with paper instead of laminate.<\/p>\n

So I think the with this technology in place, the company can really improve sales and margin both.<\/p>\n

Karan Bhatelia<\/strong><\/p>\n

Right, right. So are we the first company to go ahead with this technology or it’s very acceptable?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Absolutely. And we are planning investor, you know, like an analyst, be it or investor a day sorts in our Sandala facility where we’ll be displaying to all of you our capability in this and clearly showing you a difference between applied from a regular plant versus this new technology.<\/p>\n

Karan Bhatelia<\/strong><\/p>\n

Perfect. And sir, we’ve been mentioning of market share gains, you know, purely because of cost escalation and you know, early payment for raw materials. But any commentary on market share gains because of bis which was, you know, implemented in the last year, Any visible.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think, I don’t think there’s a visible gain because of that. Yes, the visible nuisance because of that has come down. So in MDF category there was a nuisance of import. Right. So that nuisance of import has gone down significantly because of bis. Even in plywood. There were certain grades of plywood in the premium segment which is coming in from other countries. So all of that is wiped out, which is definitely helping the country overall. It is very difficult to comment that how much green ply is gained because of that.<\/p>\n

But yes, the nuisance that the company had to face in certain markets that have gone down.<\/p>\n

Karan Bhatelia<\/strong><\/p>\n

Thank you. That is your mind.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. I request all the participants Kindly limit yourself to two questions per participant. Next question is from the nine of Neha Talreja from Noaa Marvel. Please go ahead.<\/p>\n

Sneha Talreja<\/strong><\/p>\n

Thanks a lot for the opportunity and congratulations on the HRF numbers. Just couple of questions from my end. What would be the industry growth at this particular point and your market share both in Plywood as well as MDF segment?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think industry growth in MDF would be 15 to 20% annualized growth. And I think our growth is limited to the capacity we have. So this year, more or less, we intend to, you know, use the dire capacity that we have to the fullest. And in plywood I think the growth is hardly 3 to 4%. But yes, the industry size is huge. So opportunity for a player like us is not the growth but the industry share size<\/p>\n

Sneha Talreja<\/strong><\/p>\n

And your market share approximates.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think it’s very difficult to say in plywood in MDF I had calculated that around 8, 8 and a half percent of the total industries sale would be ours at peak.<\/p>\n

Sneha Talreja<\/strong><\/p>\n

Understood.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Current levels maybe 7%.<\/p>\n

Sneha Talreja<\/strong><\/p>\n

Understood. And how is the competitive intensity in the segment? The reason I’m asking is in the month of March and probably even April, we’ve seen a substantial increase in raising prices. Is it fair enough to say that unorthodox clear could have been more harder hit because of this situation?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Absolutely fair to say. I think suppliers have blackmailed organizations for material importers, said that if you don’t advance today and lock the price at this minute, you will not get the material. Same with the raisin suppliers. So yes, for larger companies to cope up with this challenge was much easier than smaller companies. So yes, they have got hit in certain areas. We’ve also seen notifications where plants are running for three days and shut for four days in certain states in case of plywood local plants.<\/p>\n

Sneha Talreja<\/strong><\/p>\n

Oh wow. So this has given us a substantial leeway in terms of market share in the country. I<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Think it’s given every organized player a substantial leeway.<\/p>\n

Sneha Talreja<\/strong><\/p>\n

Understood. And lastly, how much would have been the total increase in the raw material pricing? And could you. You of course quantified an MDF run. Could you quantify how much price increases you’ve taken on plywood as well?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I had mentioned that 3 to 5%, 4 to 5% is what we’ve taken in plywood from brand to brand, market to market, product to product.<\/p>\n

Sneha Talreja<\/strong><\/p>\n

And that takes care of course of the complete cost increases so far. That’s why you’re considered maintaining margins.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Right.<\/p>\n

Sneha Talreja<\/strong><\/p>\n

Thanks. Thanks a lot. Thanks. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Next question is from line of Anuparak from Anandrati. Please go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah. Hi sir. Thank you for the opportunity. So my first question is by when the furniture fittings business is likely to break even?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think the year after this, somewhere in the middle of the year you should reach a situation where the business starts breaking even. The reason is that you know we’ve already done the capex for both phases and we are only installed machines for one phase. So our depreciation, our interest loan is actually for a much larger business and a much smaller business in terms of production. And also when we import the same product which we are not producing here and selling we’re making very low gross margins.<\/p>\n

But the expenses and the supply chain and all of that remains the same. Very expensive and important. So the moment the entire product start getting made here the gross margin of the company will improve and we can start making margins. So sometime this year or maybe the year after this is when we’ll do the phase two and after that the margins will drastically improve. But the good thing is that yes, we are seeing green shoots in terms of demand, in terms of the domestic sales and export sales. So both are improving and the products are really accepted.<\/p>\n

That’s the silver lining.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. Okay. So the next question is how have the timber prices behaved in quarter four for plywood and MDF and what is the outlook for FY27?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think timber prices have been quite stable for us in the. In quarter four and year ahead also looks like that. There’s a wishful thinking deep within me which says the prices should come down and you know, we should get some windfall there. But the real thinking says that you know, let’s plan for a stable year with the same price. You know, there’s any decrease, there’ll be an additional gain. But as of now we are considering that it’ll be the same, it’ll be flat.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, so and last question is what would be the revenue contribution of the from the PVC board business in FY27?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

In FY27 the revenue contribution I can give you the potential revenue of the line. You want the potential revenue of the capex. Because it also depends on how much you’re being able to sell.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah. Yes. So that works.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Okay, we’ll give you the potential cap revenue that we can. What is the potential cap revenue we can achieve in the given capex? You’ve already done for WPC?<\/p>\n

Sanjeev<\/strong><\/p>\n

75 to 80 crores.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Around 75 to 80 crores of the peak revenue we can achieve in the given capex.<\/p>\n

Operator<\/strong><\/p>\n

Thank You. I know. I’ll request you to come back for a follow up question please. Thank you. Next question is from the line of Assim from Dam Capital. Please go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yeah. Hi. So just, just. Actually I had a question. Actually there was a earlier question on the receivables but. So you said Q1 has started off well and this is despite the price increases. Now I think if your focus is rising on OEM that will have an impact on increasing overall receivable days. But just I wanted to understand, you know, given that Q1 has started off well despite price hikes, are we also incentivizing the channel by increasing current days by any way to push growth despite the smaller players being on the sidelines?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

No, I don’t think we’re doing any such thing. We are for the channel. The only policy we have is our standard credit policy in both businesses, MDF and plywood. And the only thing we promote in Canada, Channel finance which we have like you know, four or five partners who provide our dealer distributor channel finance to transact with us. That’s the only thing we promote in the channels. And OEM is a strategic focus for us because we feel a lot of people in urban India don’t want carpenters to come into the house and work which basically means that their mindset is becoming more towards organized ready made furniture buying.<\/p>\n

So we don’t want to ride slow in that category. We want to even capture that category because that category is ultimately replacing our sales. So as a strategy we are focusing on OEMs.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, so X of OEMs there is broadly no change in your credit policies to the channel before and so it’s broadly the same.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Not at all. Not at all. And we are not satisfied with these numbers. Are we not trying to justify internally we are also not satisfied. We also want to improve this.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Sure. So good to know. And second trick just on the capex. So this year on. On the MDF capex rather this year you said you sends 3 spend 300 odd crores. If I remember correctly the total budget was 450 odd. Have you spent anything in FY26 so far? Four hundred and twenty five. Sorry FY20 any amount has already been spent<\/p>\n

Sanjeev<\/strong><\/p>\n

So we have paid only the advances. For the main equipment supplier it is around 10 crores and rest of everything will be around 300 crores will be expand this year and balance it will be spill over to the 2728.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Got it. Okay, those are my questions. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Next question is from the line of Arun Ben from ICICI securities, please go ahead. Sorry to interrupt. Can you speak a little louder please?<\/p>\n

Sanjeev<\/strong><\/p>\n

This is Veda.<\/p>\n

Operator<\/strong><\/p>\n

Yes, go ahead. Yes,<\/p>\n

Sanjeev<\/strong><\/p>\n

Just on the plywood front do we see Mr. Rajesh Matthew coming back in a bigger way there? Because what I have seen, you know when he was there we had better growth in earlier years. So is his involvement going much more than what you’ve seen in last five, six years in that category particularly?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

So yes, I think he’s been definitely the driver in every category. So you know, whether it was Manoji or me, we were going back to him and taking our inspiration and guidance and coming back and performing. So I think he was anyways involved. He will be definitely more involved in the current scenario in the plywood side and yes, maybe now more in the front end also it was more backend in the last five, six years where he was taking care of the plants and the outsourced business much more than the, you know, market and marketing.<\/p>\n

But now maybe he’ll be involved on that side also.<\/p>\n

Sanjeev<\/strong><\/p>\n

That’s nice to hear. And second thing is on the MDF front we have done a few new hiring so we have read over that is now more or less that sector from a perspective of the team wise with all the new production capacities we’ve got in place now.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Sorry, I didn’t get your question. Sorry.<\/p>\n

Sanjeev<\/strong><\/p>\n

On the MDF front we have seen you’ve done a few new hirings there also. Right. So is now the team completely set with the kind<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Of capacity we have in place now? Yeah, it’s absolutely set with the new hiring and the team and the new construction is also going on full swing and the current plant is running the way it’s expected to. Best of luck. Thank you so much. Thank you. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Next question is from the line of. Sir from Investec. Please go ahead.<\/p>\n

Bhavik Bhavsar<\/strong><\/p>\n

I said thank you for the opportunity and congratulations on the good set of numbers. Sir, I just have one question which is on profitability of MDF. Profitability has increased by 2000 rupees per cvm. So just wanted to break that up like what sort of contribution came from, you know, gross margin where basically your realization has declined and what sort of contribution was from operating leverage?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think it’s mainly on account of operating leverage only if you see the previous, you know, quarter the overall volume was, you know, 42,688 versus 62,021 CBM. So<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

45%<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Change in the overall volume and the fixed cost remains the same for the entire factory and the sales team and all the overheads loaded of that business. So you know, that is what has majorly contributed in, you know, increase of margin. Even though the sales mix has reduced the average realization. But the overall margin has gone up because of the operating length.<\/p>\n

Bhavik Bhavsar<\/strong><\/p>\n

So the only reason why I asked this is because of the gross profit margin number that we’ve given. It was 16,000 per CBM in FY, basically Q3 and 17,000 CBM in Q4. So even that has improved by a thousand rupees for cbm, whereas your realization has gone down. I understand that your product mix would have changed, but this is, this number is also improved.<\/p>\n

Sanjeev<\/strong><\/p>\n

So this gross margin is also increased just because<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Of the product mix,<\/p>\n

Sanjeev<\/strong><\/p>\n

Nothing else.<\/p>\n

Bhavik Bhavsar<\/strong><\/p>\n

Okay, but, but<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Yeah, the reason is also that, you know, we stopped trading, you know, initially in quarter two and quarter three to just, you know, service the market. We had to also buy MDF and sell mdf, which hardly had any gross margin and which is overall impacting the overall margin. So but now in this quarter we hardly had any trading volume. So that is also a reason why you see this margin.<\/p>\n

Bhavik Bhavsar<\/strong><\/p>\n

And so basically your value added product as a percentage of revenue, how much for that would it would be?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think it’s difficult to comment, but it’s around 5, 6% I think. Right.<\/p>\n

Bhavik Bhavsar<\/strong><\/p>\n

Value added products?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

No. So are we talking about prelab modes or you’re talking about what are we value<\/p>\n

Bhavik Bhavsar<\/strong><\/p>\n

Added<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Only prelim<\/p>\n

Bhavik Bhavsar<\/strong><\/p>\n

Plus HDHMR.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

So then that will be higher than 50%, but it’s not, we cannot give you the exact number for that. But that would be higher than 50%.<\/p>\n

Bhavik Bhavsar<\/strong><\/p>\n

Okay. And that would have changed quarter on quarter, I believe.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Right. Increase<\/p>\n

Bhavik Bhavsar<\/strong><\/p>\n

Hopefully. Okay,<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Right,<\/p>\n

Bhavik Bhavsar<\/strong><\/p>\n

Perfect. Thank you so much for answering my question, sir. Thank you.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. I request to all the participants, kindly limit yourself to two questions per participant. Next question is from the line of Nikunj Gala from Parathya Capital Management. Please go ahead.<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

Yeah, good afternoon everyone. I have just one question on MDF side. So let peak, you know, utilization of MDF capacity. What is steady state ROC you aspire to have?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

So I think I’ve answered this question in the past also. So in today’s time, even at 17, 18 EBITDA, the ROCs are not very attractive. But we have to see these ROCs on a three year, five year, seven year period and I think then it will start looking justified to us in a short period. It might not look justified today. Yeah,<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

I understand, but what do you think?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think anything between 18, 20% if you know, if we are in that range, I think we are very lucky and we are well placed.<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

Okay. Yeah. So 18 to 20 like any MBF player or you know, you should be aspiring to have at least that kind of ROC to justify your investment. Right,<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Right. So I think if you see the new CapEx also that we’re doing, we’ve reduced the investment per cubic meter on a Conti capacity. So what we are trying to do with that change in Capex behavior or Capex style of investment is also only to improve the ROC and to be conscious that yes, see for green ply to grow and to remain dominant in the wood panel category MDF is an absolute sets. But to also maintain the ROCs and make everything work for every stakeholder, we’ve improved the CapEx turnover ratio so that the rocs can ultimately keep improving in this category going forward.<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

Okay. Yeah. That is the reason why we have<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Done 425 crores capex.<\/p>\n

Utkarsh Nopany<\/strong><\/p>\n

Okay. Thank you for your comment, sir. Thanks.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Next question is from the line of Vijay Karpe from Sriram Life. Please go ahead.<\/p>\n

Sanjeev<\/strong><\/p>\n

Thank you so much for giving me the opportunities. Lots of question has been asked on the trade. Sorry to interrupt. Can<\/p>\n

Operator<\/strong><\/p>\n

You please speak through the handset? The line for the participant dropped. We move to the next participant. Next question is from the line of Mithun Aswad from Kiva Advisors. Please go ahead.<\/p>\n

Sanjeev<\/strong><\/p>\n

Yes, sir. Congrats on a good set. I just wanted to understand. You mentioned that a couple of your facilities on the plywood side, you have used a different technology and upgraded it. Once you implement that in your other facilities as well, is there an improvement in margins or what is exactly the benefit? Or you will get better realizations. If you could highlight<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

The benefit is better quality and a quality which is more internationally acceptable and more acceptable obviously to the retail market as well as furniture makers. And in return, because we’ve implemented this technology as an outcome, we’ve realized that the cost will also slightly improve at this moment. How much cost will improve? It’s very difficult to quantify. But definitely there’ll be a huge improvement in quality and overall perception of the material which will definitely help us achieve better numbers, better sales.<\/p>\n

Sanjeev<\/strong><\/p>\n

And in terms of your debt level, do you see them remaining at the same levels next year considering the large Capex that you have planned?<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I have mentioned this that the current level is 0.52, right? 0.52 debt equity level at peak this might go up to 0.7 or maybe even 0.72 which might be the next year end or the year after that. But then immediately the following year it will again come back to the 0.55 or 0.52 level because the company is also the operating cash flow also continuously increasing with the given CapEx plan.<\/p>\n

Sanjeev<\/strong><\/p>\n

Right. And just wanted to understand in terms of the competitor environment, do you see a lot of new, do you see a lot of players continuing to ramp up capacity on the mdf? Or do you see that we have kind of reached some sort of equilibrium and that’s not to be seen.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

I think there are certain players whose plants are either starting construction or due to end by the year end they have already started. But I don’t see any new major capacity being announced other than which is already announced. So that is a good sign. And as far as greenplay is concerned, with our brand, you know, first two to three lines we should have zero complaint of sales. So, you know, so honestly I’m not focusing on that. I’m only focusing on our line running, our material getting sold and our new facility getting constructed.<\/p>\n

We’re not focusing on what the outside world is doing because we feel that, you know, with our given brand, first three lines should be very easy to sell. Sure. All the best. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much, ladies and gentlemen. We will take that as a last question and now hand the conference over to the management for closing comments.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Thank you all for taking time to participate in this call. In case of any further clarification or queries, please feel free to reach to us. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you very much on behalf of Asian Market Securities. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.<\/p>\n

Sanidhya Mittal<\/strong><\/p>\n

Thank you.<\/p>\n","protected":false},"excerpt":{"rendered":"

Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon. Greenply Industries Ltd (NSE: GREENPLY) Q4 2026 Earnings Call dated Apr. 30, 2026 Corporate Participants: Sanjeev \u2014 CFO Sanidhya Mittal \u2014 Joint Managing Director Analysts: Karan Bhatelia \u2014 Analyst Utkarsh Nopany \u2014 Analyst Unidentified Participant […]<\/p>\n","protected":false},"author":2377,"featured_media":147581,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6349],"tags":[10169,9175,9104,9092,14492,10089],"class_list":["post-182140","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transcripts","tag-earnings","tag-earnings-call","tag-earnings-conference","tag-earnings-transcripts","tag-financial-results","tag-quarterly-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":156755,"url":"https:\/\/alphastreet.com\/india\/greenply-industries-ltd-q2fy24-42-fall-in-profits\/","url_meta":{"origin":182140,"position":0},"title":"Greenply Industries Ltd Q2FY24; 42% fall in Profits","author":"Hardik Bhandare","date":"November 28, 2023","format":false,"excerpt":"Established in 1990, Greenply Industries Limited is amongst the leading plywood manufacturers in India with a 26% share of the organized market. 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