Greenlam Industries Ltd., leading manufacturers of surfacing products with its flagship brand Greenlam Laminates, Decowood Veneers, Mikasa Floors and Mikasa Doors & Frames, today announced its financial results for the third quarter and nine months ended 31st December 2019.
For the third quarter ended on 31st December 2019, consolidated net revenues from operations witnessed a growth of 14.0%, at Rs. 358.0 crores, as compared to Rs. 314.0 crores in the corresponding quarter of the previous financial year. Laminate volumes grew by 7.8% YoY and Operating Profit increased by 33.1% at Rs. 54.6 crores as compared to Rs. 41.1 crores in the corresponding quarter last year. The company recorded a net profit of Rs. 29.1 crores, as compared to Rs. 19.8 crores in the corresponding quarter last year, which is an increase of 46.7%.
For the nine months ending 31st December 2019, consolidated net revenues from operations witnessed a growth of 8.3%, at Rs. 996.6 crore, as compared to Rs. 920.5 crore in corresponding period of the previous financial year. Laminate volumes grew by 2.9% YoY and Operating Profit increased by 16.6% at Rs. 133.0 crore as compared to Rs. 114.1 crore in the corresponding period of the previous year. Net profit after tax stood at Rs. 65.0 crore as compared to Rs. 53.4 crores in the corresponding period last year, which is an increase of 21.8%.
We would like to announce that our wholly owned subsidiary, Greenlam South Limited (GSL), has approved to set up a manufacturing facility at Naidupeta, Nellore in Andhra Pradesh for manufacturing of Laminates and allied products. This is also to inform that GSL has been provisionally allotted land admeasuring 65 acres approx. by Andhra Pradesh Industrial Infrastructural Corporation (APIIC) at Naidupeta, Nellore in Andhra Pradesh. This proposed capacity addition by GSL will increase laminate manufacturing capacity by 1.50 million laminate sheets/boards per annum. It should take about 24 months for the proposed capacity to be operationalized. Investment required to set up the Laminate and allied products plant (including the cost of land) is about Rs. 175 Crores which will be financed with a mix of debt and capital infusion from Greenlam.
Speaking on the financial results Mr. Saurabh Mittal, Managing Director and CEO, Greenlam Industries Ltd. said, "This quarter has ended with a topline growth of 14% as compared to corresponding quarter last year. We are pleased to witness a higher growth in our laminates exports business both in value and volume, whereas domestic business was subdued.
We have decided to undertake a Greenfield expansion under our wholly owned subsidiary Greenlam South Limited to cater to the growing laminate demand in domestic and international markets. This land has been provisionally allotted at Naidupeta, Nellore in Andhra Pradesh. With this expansion, our laminate capacity will increase by 1.50 million sheets per annum.
At Greenlam, it is our constant endeavor to bring the best in surfacing products to our consumers. With increased capacities and capabilities, we continue our commitment to bring to our customers superior quality products that aid them to redefine their interior spaces."