Greenply commences production at Chittoor plant

The company's plant in Chittoor, Andhra Pradesh started commercial production of MDF on July 1. The plant has an annual capacity of 360,000 cubic meters. 

For FY19, the new MDF production unit is aiming at an annual capacity utilization of 45 per cent. The plant is situated at Routhu Suramala, Thottambedu, Chittoor, Andhra Pradesh.

On the financial front, for Q4FY18, the company's net sales were down by 6 per cent YoY at Rs. 420 crore. While gross margins were lower by 310 bps YoY to 44.8 per cent due mainly to lower realisations in plywood and losses in wallpaper and others category. The company's EBITDA margins were down by 290 bps YoY to 13.9 per cent. PAT was down by 22.1 per cent YoY to Rs. 32.6 crore. The reduction of MDF prices due to competition adversely impacted MDF volumes in Q4FY18.

Greenply Industries Limited (GIL) is a major organized player in the plywood and MDF market with 26 per cent market share in the plywood and 30 per cent share in the MDF market in India.

On Monday, the stock of Greenply witnessed volatility, the stock open at Rs. 234.50 per share and closed at Rs. 229.95 per share, down by 3.02 per cent on BSE. The company's filing announcing the commencement of production at the new plant came in the closing hours of trade.