Greenlam beats GST blues with higher margins

Greenlam Industries reported a 15.8% increase in net profit for the September quarter despite a hit on revenue from the GST by cutting down on operating costs.

The company recorded a net profit of Rs 16.0 crores, up from Rs. 13.8 crores in the corresponding quarter last year.

This was despite a 0.8% decline in operating revenue to Rs. 275.6 crores.

Laminate volumes grew by 8.8% compared to the same quarter last year.

Operating profit increased to 38.2 cr from 35.3 cr in the year-ago period.

“We saw reasonable volume growth of 12.8% in the Laminates business this quarter, despite the challenging domestic market situation post GST implementation in the month of July,” said Saurabh Mittal, Managing Director and Chief Executive Officer.

Some of the company’s brands include Greenlam laminates, Decowood premium veneers, Mikasa real wood floors & Mikasa engineered doors & frames.

With this, for the first half of the current financial year, revenue is up 2.3 %, at Rs. 553.3 crores, laminate volume are higher by 7.2% and operating profit increased by 8.5 % at Rs. 71.0 crores.