Century Plyboards (India) Ltd reported the net profit of Rs 51.44 crore during second quarter ended by September 30, 2020 a loss of 1.4% to the corresponding period of the last year. Last year the company had made a profit of Rs 52.14 crore. On half yearly basis the profit has dropped by 58% decreasing from Rs 100.28 crore to Rs 43 crore. The revenue generated in the Q2 this year was Rs 521 crore while the company has recorded the Expenditure of Rs 452 crore.
Mr. Keshav Bhajanka, executive director of the company said, ‘Q2 has seen very strong growth and has been far better than expectations. “In Q3 we are on course to do better than last year and Q4 again we will do better than last year”. Speaking about ViroKill ply product, he said, “All our products are now ViroKill. We have always been the innovation leader in the category and this only further reinforced and strengthened our role as the innovation and the market leader in the plywood category.”
Company’s overall margins look better as raw material costs are down. “Going forward you will see margins further improving. Medium-density fibre (MDF) has done phenomenally well. In laminates and plywoods also within this quarter and next quarter, we will see an expansion in margins. We should look at margins at 1 percent higher going forward,” Bhajanka added.
The company is planning to spend Rs 350 crore on 100 percent capacity addition in MDF board. “It will be primarily funded through internal accruals,” he said.