Why Did Greenpanel Industries' Net Profit Plummet by 47% in FY25?
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Synopsis
Greenpanel Industries' recent announcement reveals a staggering 47% drop in net profit for FY25, alongside a notable revenue decline. This raises concerns about their financial stability and future strategies. CEO Shobhan Mittal emphasizes plans for expanding distribution and value-added products to regain profitability.
Key Takeaways
- Net profit for FY25 fell to Rs 72.1 crore.
- Profit decline of 47% from FY24.
- Q4 FY25 revenue decreased by 5.6%.
- Total income down by 8.18% for the full financial year.
- Focus on expanding distribution and value-added products.
Mumbai, May 22 (NationPress) - Greenpanel Industries, a prominent wood panel manufacturer based in Kolkata, revealed on Thursday that its profit has decreased to Rs 72.1 crore in FY25, marking a significant decline of nearly 47 percent from Rs 135.24 crore in the previous fiscal year (FY24).
On a year-on-year (YoY) basis, the net profit for the quarter was Rs 29.4 crore, showing a slight decrease of 1.4 percent compared to Rs 29.8 crore in the same quarter last year (Q4 FY24).
The downturn is primarily attributed to reduced revenues and diminished margins.
In the January-March quarter (Q4 FY25), Greenpanel's revenue from operations fell by 5.6 percent to Rs 374.5 crore, down from Rs 396.5 crore in the corresponding quarter of the previous financial year.
Total income for this quarter also saw a decline of 6.29 percent YoY, totaling Rs 378.4 crore.
For the complete financial year, Greenpanel's total income was Rs 1,458.33 crore, which is an 8.18 percent reduction from Rs 1,588.17 crore reported in FY24.
The company's operating profit (EBITDA) decreased to Rs 47.9 crore in Q4 FY25, reflecting a 6.9 percent drop from Rs 51.5 crore in the same period last year.
The EBITDA margin was recorded at 12.8 percent, slightly lower than 13 percent in Q4 FY24.
“Our primary focus moving forward will be on expanding distribution, boosting domestic volumes, enhancing the proportion of value-added products, elevating the Greenpanel brand presence, and increasing plantations,” stated MD and CEO Shobhan Mittal.
After the earnings announcement, shares of Greenpanel Industries closed 2.92 percent lower at Rs 249 on the National Stock Exchange (NSE) on Thursday.
Greenpanel Industries Limited is an Indian manufacturer of wood panels, particularly renowned for its Medium Density Fibreboard (MDF).
The company also produces plywood, pre-laminated MDF, wooden flooring, and various related items.
It operates through two main segments: Plywood and allied products, and Medium Density Fibreboards (MDF) and allied products.
Point of View
It's essential to recognize the broader implications of Greenpanel Industries' financial struggles. This decline not only affects the company but also reflects challenges within the wood panel manufacturing sector. Stakeholders must pay attention to the company's strategic adjustments as they navigate these turbulent times. The focus on expanding distribution and enhancing product offerings could prove vital for recovery.
NationPress
01/06/2025
Frequently Asked Questions
What caused the decline in Greenpanel's profits?
The decline in Greenpanel's profits is primarily due to lower revenues and weaker margins in FY25.
What is Greenpanel Industries known for?
Greenpanel Industries is known for manufacturing wood panels, especially Medium Density Fibreboard (MDF), along with plywood and related products.
How much did Greenpanel's total income fall in FY25?
Greenpanel's total income fell by 8.18% in FY25, amounting to Rs 1,458.33 crore.
What is the company's strategy moving forward?
The company's strategy focuses on widening distribution reach, boosting domestic volumes, and enhancing the proportion of value-added products.
How did the market react to Greenpanel's earnings report?
Following the earnings report, shares of Greenpanel Industries dropped by 2.92% on the National Stock Exchange.
