PL First Cut – Century Plyboards India Ltd. Q2FY24

PL First Cut – Century Plyboards India Ltd. Q2FY24 – Praveen Sahay – Research Analyst, Prabhudas Lilladher Pvt Ltd

Century Plyboards India Ltd. Q2FY24 Result First Cut*

CMP: Rs656 | Mcap: Rs145.7bn | BUY

Above estimates, Margin contraction continues with laminate & MDF segment

➡️ Century Plyboards reported a revenue of Rs9.97bn up 9.7% YoY (PLe: Rs9.1bn), 4.8% above consensus.

➡️ Gross margin expanded 180bps YoY to 48.4%, (PLe: 47%) .

➡️ EBITDA is Rs1.4bn (PLe:Rs1.4bn) up 17.2% YoY. EBITDA margin stood at 14.5% contracting 100bps YoY (PLe: 15.9%) vs cons. est 15.6%.

➡️ PBT increased by 21.7% YoY to Rs1.3bn (PLe: Rs 1.2bn) .

➡️ PAT stood at Rs971mn (up 21%% YoY, PLe: Rs 922mn) and down 1.9% consensus estimate of Rs 989mn.

Segment Details:

Plywood

➡️Plywood revenue at Rs 5.5bn (up 11% YoY), was ahead of our estimate of Rs4.9bn. EBIT came in at Rs 722mn (up 88% YoY), EBIT margin expanded 530bps YoY to 13.1%.

Laminates

➡️Laminates revenue stood at Rs 1.7bn (down 2.5% YoY), which was below our estimate (PLe: Rs 1.8bn). EBIT stood at Rs 186mn (down 40% YoY) with 700bps YoY contraction in EBIT margin to 10.8%.

MDF

➡️MDF revenue came in