Greenlane Renewables Inc.

Ladies and gentlemen, good day and welcome to the GreenLamb Industries Limited Q2 NHY FY26 results. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. I now hand the conference over to Mr. Saurav Mittal, Managing Director and CEO of Greenland Industries Limited. Thank you, and over to you, sir.

Thank you. Good afternoon, friends, and a very, very warm welcome to the quarterly calls of Greenland Mid-Assets Limited. And I'm pleased to have Ashok, our CFO, Samad from the finance team and SGA on this call. And I will discuss, take you through the performance and updates for the quarter. As you probably have seen, we've done about, we've crossed 800 crores of revenue in Q2 of 526. And the business has grown by about 18.7% on a year-on-year basis. And even at the gross margin levels, we've done about 54.6%. It's one of the highest we've done in terms of gross margins. EBITDA also, we crossed 100 crores. And obviously EBITDA was impacted due to Forex losses and still small losses in the chipboard and the plywood business. And PAC was impacted also due to the Forex and higher depreciation interest, considering the fact that we have plants capitalized in FY25 and FY24 and FY23. If you go segment-wise, in the laminates business, revenue, gross margins, EBITDA, I think across all the categories, we did very well in Q2. And both domestic and international markets have done well. I think international has done slightly better than domestic for us in Q2. So on the laminates business, we've also announced a brownfield expansion of 2 million sheets and boards. This is two lines of laminates we're expanding at our facility at Andhra Pradesh, Nidopeta. And these two lines of 2 million sheets and boards will generate about, in the range of 375 to 400 crores of revenue. We're expecting commercial production in Q4 of 527. So that's on the laminates business. In the chipboard business, like we said previously, the products are being very well received in the market. So from a product quality, performance, decor range, I think there's very good feedback from the market. The plant side is quite well settled and we continue to build this chipboard business. So we are focusing on completing the channel apartment wherever there are gaps, focusing on secondary sales specifications, you know, streamlining or expanding business with the furniture makers and the Williams. And we are hopeful that the business will keep improving in the time to come. On the plywood business too, I think we said this earlier, the product feedback is very well. And we've added a few more markets in F526 in Eastern India and Western India. And gradually we are seeing traction. The growth in plywood business in Q2 has been pretty decent also. I think we're in about 45-50%. The business of, in the flooring business has also become a bit positive. The dog business also has grown in Q2. The vineyard business also has become a bit positive. So by and large, if you see in Q2, I think across the three large categories and even the smaller categories, I think there's improvement in revenues, volumes, realization, gross margins. product side, things have also gone well with the various launches we've done in Q2 and in H1. The working capital days have also, you know, we've done reasonably well there. We had about 47 days in Q2, despite the fact that in plywood and chipboard, we still have, you know, slightly disproportionate working capital days because sales are yet to settle in. We've managed to reduce about 50-odd crores of debt. Cash flow from operations have also been healthy. So by and large, I think across the business, number i think we've moved ahead like we said earlier this year's a year of execution for us because we are free from all the expansion which we did over the last three years and this complete focus on uh execution and i think things are going in a decent direction uh On the market side, too, I think while there will always be challenges and still are challenges on both exports and domestic, I think the teams are continuing to strive well and we hope to keep winning market share and keep growing the business in a profitable manner. So that's it from my side. I will hand over the call to Ashok. Ashok will take you through all the financial details and numbers, those which will have an open house question. Ashok, over to you.

Thank you, sir. Good afternoon everyone. Let me take you through the financial performance for the quarter and for the half year. First, to the quarterly performance on a consolidated basis, net revenue grew by 18.7% on year-on-year basis and grew by 20% on sequential basis to Rs. 808 crore in this quarter as compared to Rs. 681 crore in Q2 last year. Gross margin grew by basis point to 54.6% in this quarter from 51.6% in Q2 last year and grew by 150 basis point on a sequential basis. Gross profit in absolute term grew by 25.5% on year-on-year basis to 441 crore as compared to 351 crore in Q2 last year. EBITDA margin before forex fluctuation was up by 130 basis points and stood at 13.2% in this quarter as compared to 12% in Q2 last year. On a sequential basis EBITDA margin grew by 510 basis points. EBITDA before forex fluctuation in absolute term grew by 32% to 107 crore in this quarter as compared to 81 crore in the Q2 last year. Net profit for the quarter stood at 31.8 crore as against 34.4 crore in Q2 last year. Moving on to half yearly performance, on a consolidated basis net revenue grew by 15.3% on year on year basis to 1482 crore as compared to 1285 crore last year. Gross margin was up by 210 basis point to 53.9% in this H1 from 51.8 in last year. Gross profit in absolute term grew by 20% to 799 crore as compared to 666 crore in H1 last year. EBITDA margin before forex fluctuation was down by 40 basis point at 10.9% in this H1 from 11.3% in last year. EBITDA before forex fluctuation in absolute term grew by 11% to 161 crore as compared to 145 crore in last year. Net profit was down to 16 crore in this in this half year as against 54 crore in the last year due to higher interest and depreciation and foreign currency losses on new project which was commissioned in the q4 of the last year moving on to segmental performance first laminate analyte which continues to be our biggest segment For the quarter, the revenue grew by 10.2% on year-on-year basis and grew by 18.6% on sequentially to 658 crores from 597 crores in Q2 last year. Volumes saw growth of 7.4% on year-on-year basis and 17.2% on a sequential basis. EBITDA margin before forex fluctuation After forex fluctuation stood at 18.7%, a growth of 400 basis point on year-on-year basis and a growth of 450 basis point on quarter-on-quarter basis. Products and volume were the highest in this quarter and stood at 5.9 million sheets and bolts with a utilization level of 96%. Sales volume for the quarter stood at 5.79 million sheets and bolts. and with an average realization of 1104 in this quarter for the half yearly laminate for the half year laminate revenue grew by 7.2 percent on year-on-year basis to 1213 crore from 1131 crore in last year volume grew by 6.7 percent habitat margin stood at 16.6%, a growth of 240 basis points on year-on-year basis. Production volume were at 11.06 million sheets with a utilization level of 90%. Sales volume in this half year stood at 10.73 million sheets with an average realization of 1,098 per sheets and board. Moving on to another segment, plywood and alloys. This segment consists of plywood, decorative veneer, engineered doors and engineered floors. Revenue of this vertical grew by 22.2% on year-on-year basis and grew by 16.4% on a sequential basis to 102 crore from 83.9 crore in Q2 last year. Habitat loss for this quarter before quarets reduced to 3.9 crore in comparison to 6.2 crore loss in Q2 last year. Revenue for the half year grew by 23.5% to 190 crore from 154 crore last year. Habitat loss for the quarter reduced to 12.5 crore as compared to 14.9 crore in H1 last year. moving on to another segment final analyze with which is having chipboard as of now for the quarter revenue grew by 54.2 percent on quarter on quarter basis to 47.8 crore in this quarter from 31 crore in quarter one last quarter one 26 volumes of growth of around 80 percent average realization stood at 18 000 The production volume were at 26,571 m3 and at a utilization level of 36%. Sales volume for the quarter stood at 26,287 m3. In this quarter, working capital improved by 12 days and stood at 47 days as compared to 59 days in Q2 last year. Net debt as on 30th September stood at 995 crores as against 1040 crores in the June quarter with a reduction of 45 crores in this quarter. That's all from my side. Thank you. We will now open the floor for the questions.