What Caused Century Plyboards’ Q4 Net Profit to Drop by 34%?
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Synopsis
Century Plyboards (India) Limited revealed a significant drop in its Q4 net profit, attributed to rising expenses. Despite a revenue increase, escalating costs impacted the bottom line. This report dives into the numbers, shedding light on the company's financial health amidst market challenges.
Key Takeaways
- 34% decline in net profit for Q4.
- Revenue increased by 13%.
- Total expenses rose to Rs 1,118.68 crore.
- EBITDA margin decreased to 11.23%.
- Proposed dividend of Re 1 per share.
Mumbai, May 29 (NationPress) Century Plyboards (India) Limited disclosed a 34% year-on-year (YoY) decline in net profit, recording Rs 52.50 crore for the fourth quarter (Q4), down from Rs 79.50 crore in the same quarter of the previous fiscal year (Q4 FY24).
The company's revenue from operations saw an increase of 13%, reaching Rs 1,198 crore compared to Rs 1,060.7 crore in Q4 FY24, as stated in its stock exchange filing.
However, escalating expenses negatively affected the company's profitability. Total expenses surged to Rs 1,118.68 crore, marking a 16.65% increase from Rs 959.02 crore a year prior.
The cost of materials consumed during this quarter rose by 19.04%, totaling Rs 582.75 crore.
Finance costs almost doubled, skyrocketing by 85.63% to Rs 18.95 crore from Rs 10.21 crore in the same quarter of the previous financial year.
Additionally, other expenses increased by 18.55%, amounting to Rs 244.35 crore, according to the company’s regulatory filing.
Century Plyboards’ EBITDA experienced a slight reduction of 1.8%, decreasing to Rs 134.6 crore from Rs 137 crore in the previous year's Q4.
The EBITDA margin contracted to 11.23% from 12.93%, reflecting a reduction of 170 basis points.
Despite the profit downturn, the board of directors has recommended a dividend of Re 1 per equity share for the financial year ending March 31 (FY25).
Founded in 1986, Century Plyboards is a prominent manufacturer of plywood, laminates, veneers, and various wood-based products, catering to both residential and commercial markets.
With manufacturing units strategically located across India, including Kolkata, Karnal, Guwahati, Hoshiarpur, Kandla, and Chennai, Century Plyboards stands as a leading seller of plywood and decorative veneers in the country.
The company also boasts a global footprint, exporting products to over 20 countries.
Point of View
The decline in Century Plyboards' profit reflects broader economic challenges that many companies face today. It's essential to understand how rising costs can influence financial outcomes and investor confidence. As the company navigates these turbulent waters, its ability to adapt will be key to maintaining its market position.
NationPress
21/07/2025
Frequently Asked Questions
What is the net profit of Century Plyboards for Q4?
Century Plyboards reported a net profit of Rs 52.50 crore for Q4, down 34% from the previous fiscal year.
How much did the revenue from operations increase?
Revenue from operations increased by 13%, reaching Rs 1,198 crore.
What factors contributed to the decline in net profit?
The decline in net profit was primarily attributed to rising expenses, which climbed to Rs 1,118.68 crore.
What is the EBITDA margin for Century Plyboards?
The EBITDA margin shrank to 11.23%, down from 12.93%.
Is there a dividend proposed for shareholders?
Yes, the board has recommended a dividend of Re 1 per equity share for FY25.
