GREENPANEL - Greenpanel Industries Limited Share Price

Sure! Here are the major questions and detailed responses from the Q&A section of the earnings transcript:

1. Question: "If you could throw some light on the import scenario and how we are seeing it play out for the rest of the year?"

   • Answer: "Imports are still quite muted. While a few companies have received BIS certification, our domestic pricing is competitive enough to mitigate any significant import influx. Imports are limited to specific applications, and we don't foresee any immediate threats given our current price competitiveness."

2. Question: "Can you give us any update on the new QCO standards?"

   • Answer: "The new QCO standards are now in effect, and we are recalibrating our specifications accordingly. These standards are more stringent and should restrict imports further, enhancing compliance with the BIS."

3. Question: "Can you provide insights on urea prices and the worst situation for us?"

   • Answer: "We buy resins rather than urea directly, and prices had spiked due to supply issues but are now stabilizing with increased supply. Currently, the pricing environment is stable, so we expect consistent purchasing costs moving forward."

4. Question: "What is the reason for the margin improvement despite flattish domestic MDF revenue?"

   • Answer: "The export sales have increased, allowing for operating leverage, which improved our margins despite the lack of growth in domestic retail. Additional volumes contribute positively to fixed cost recovery, driving margin improvement."

5. Question: "Will you target to keep prices stable or implement hikes given the rupee's weakening?"

   • Answer: "We don't foresee imports posing a threat currently, as domestic prices are competitive. Thus, we won't likely adjust prices upward, especially considering current competition levels."

6. Question: "How much EPCG benefit have we recognized in December, and what about the subsidies?"

   • Answer: "In Q3, we recognized INR8 crore from EPCG, and we've accounted for INR8.5 crore in revenue subsidies as other operating income, alongside previously recognized amounts. We anticipate recognizing more EPCG benefits in the future based on export performance."

7. Question: "Could you clarify the impact of the INR8.5 crore power subsidy on MDF margins?"

   • Answer: "Yes, the MDF margin of 11.9% does include that subsidy, noted as a one-off item. This should be understood when analyzing our operating performance for the quarter."

8. Question: "What are the utilization levels at the new plant and the operational EBITDA positivity?"

   • Answer: "The new plant is operating at approximately 60% utilization, and we observe a total capacity utilization of around 63%-64% across all lines. All plants are currently generating positive EBITDA."

9. Question: "Given the structural challenges previously faced, what cost relief are we seeing now?"

   • Answer: "While some cost inflation was seen during the seasonal spike, overall sequenced costs have remained stable, allowing us to maintain gross margins around 50%. If costs stay steady, we aim to keep our margins intact despite competitive pressures."

10. Question: "What is your guidance for volume growth for FY27?"

    • Answer: "We anticipate mid to high teens volume growth for FY26, but prefer to hold off on specific FY27 projections until we analyze Q4 performance. We believe appropriate utilization and product mix can yield sustainable margins of around 20%."