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Greenply Industries Q1 net profit up 25.6% on robust sales

For the June quarter, Greenply, the country’s largest interior design company, has reported positive results amidst economic uncertainty. Both sales and net profit increased by 11.6% and 25.6%, respectively. The stock has caught the fancy of foreign institutional investors

Greenply Industries has reported 11.60% year-on-year (y-o-y) increase in net sales to Rs480.49 crore for the quarter ended 30 June as against Rs430.53 for the corresponding period last year. Its EBITDA grew 14% from Rs37.50 crore to Rs42.85 crore for the first quarter of the 2013-14 fiscal. Greenply’s net profit stood at Rs22.56 crore, up an impressive 25.61% y-o-y. Most of the revenues came from the company’s plywood division which contributed to nearly half, or Rs228.24 crore, of the company’s revenues. Laminates and allied products contributed to Rs175.11 crore or 36% of the total revenues. The company has three segments: plywood, laminates and medium density fireboards (MDF).
 

With regard to its new MDF manufacturing unit in Andhra Pradesh, the company has completed acquisition of land in Chittoor District, and necessary steps are being taken to obtain various statutory approvals and licenses to setup the unit. Meanwhile, civil construction works has been completed in the company’s MDF unit in Pantnagar, Uttarakhand. Orders for all major machineries have been placed and are in the process of being installed. In its existing manufacturing unit in Behror, Rajasthan, Greenply has completed acquisition of land adjacent to the plant and placed a purchase order for imported equipments.
 

There are several plywood manufacturers but Greenply has caught the fancy of foreign institutional investors (FIIs). As of June 2013, FIIs’ holding was 13.21%, higher than the 7.67% recorded in March 2013. The promoters hold 55% while domestic institutional investors hold 5.81%; retail shareholding is 25.98%
 

Moneylife had written about this stock earlier and the story can be accessed here
 

Greenply Industries closed Tuesday 1.6% down at Rs498.25 despite reaching its 52-week high of Rs524 on the BSE, while the benchmark Sensex ended the day marginally up at 20,302.

 

For more news on earnings, check out this page

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Zee to witness muted growth in ads during June quarter

Nomura expects continued growth momentum from Zee Entertainment in 1QFY14, while for Dish TV it expects higher concentration of content cost which will subdue the quarterly operating outcome

 

In the media sector, Zee Entertainment is expected to have robust growth momentum led by domestic subscription, but advertisement growth is expected to be muted, says  Nomura Equity Research in its report.

 

For Zee, Nomura has estimated a top-line growth of 13.9%, EBITDA margin of 26.1% and net profit growth of 14% y-y. Nomura expects international revenue to grow by 3.3% y-y on account of depreciation of rupee.

 

Nomura points out that Zee’s 4QFY13 domestic subscription revenue benefitted from incremental revenue from content negotiation between Dish TV and Media Pro for full FY13. For Dish TV, content cost concentration is expected to be higher in 1Q, with no risk to the full-year content cost increase assumption of 10% in FY14.

 

Nomura has forecast results for Zee as given below:
 

Nomura expects Dish TV to report sales growth of 11.7% y-y led by average revenue per user (ARPU) increase from Rs157 in 4QFY13 to Rs163 in 1QFY14. ARPU declined from Rs160 in 3QFY13 to Rs157 in 4QFY13 on account of down trading and lower number of days in 4Q vs 3Q (February effect). So, assuming a base case of Rs159 (post down trading), it is estimated that there will be a Rs4 increase in ARPU on account of part of the package price increase (effected by the company in April-13).  DTH (direct to home) companies have increased the prices of their set top box (STB), which has resulted in an increase in the price differential between the STB price of DTH companies and MSOs.

 

Dish TV has cash and cash equivalent of $40 million. Since the USD/INR has increased by 5.1% from end of 4QFY13 to the end of 1QFY14, Nomura expects increased other income of Rs274 million in 1Q.

 

Similarly, Nomura has forecast results for Dish TV as given below:

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