Greenpanel Industries FY21 Annual Report Takeaways.

'27% market share of the Indian MDF market & growing'

Hit the 'retweet' & help us educate more investors.

A Thread 🧵👇

1/ Basic facts about the business:

- Leader in wood panels in which their principal product is MDF (Medium Density Fibreboard)
- Demerged from Greenply in 2018
- 2 plants in UP & AP (this one being the largest MDF plant in the world.
2/ Product Offerings are dispersed over multiple types of wood panels: From MDF to specialty plywood to veneers.
3/ Challenges faced by the company in FY21 (Pic 1)

& How they tackled them (Pic 2)
4/ Financials: Performed better on all metrics.

Rev up 20%
Expanded EBITDA margin by 420bps
Net profit up 370%
Strong Cashflows
Receivables cycle down to 28
Paid back 157crs of debt

Talks of sustainable growth with a focus on cashflows & lower working capital.
5/ From the desk of the Chairman

- Committed to producing only as much as the market can absorb (can they control their competitors?)
- Did not & will not discount to push sales
- Get a better credit profile.
- Will do Capacity growth at lower capital cost than greenfield.
6/ From the desk of the CEO

- Gained market share in MDF: As the broad MDF market de-grew by 37% while they grew by 20%
- Q1 of FY21 showed 57% regrowth in revenues which bounced back leading to the highest ever sales in Q4
- No big capex in the next 3yrs | Peak rev at 1600crs
7/ Macroeconomic trends that benefit the MDF Industry

Economic growth
Attractive social fundamentals
Vast under consumption
Increase in incomes and aspirations
Lifestyle priorities
Atmanirbhar Bharat
Urban real estate growth
Rural emergence
8/ Various risks & how the management is controlling them.

- Demand risk: depends on increased construction of real estate & people's willingness to spend on upgrading.
- Import risk: In the past few years, cheap imports were dumped all over 🇮🇳

& many others.
9/ Different ways in which the management is trying to increase their shareholder's value.
10/ Reasons why MDF is a preferred furniture fabrication resource.

78% of the company's revenue comes from MDF.

Current capacity utilisation at 69% (up from 60% in FY20)
11/ Brand investments to educate customers of the positive attributes of MDF over lower-priced plywood continue with full force.
12/ Consumption for the co's products would grow at double digits in the upcoming yrs.

One of the most detailed annual reports out there

The products are commodities so supply-side dynamics (imports & domestic capacities) should always be taken into account.

End of Thread.

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The first ever world map was sketched thousands of years ago by Indian saint
“Ramanujacharya” who simply translated the following verse from Mahabharat and gave the world its real face

In Mahabharat,it is described how 'Maharishi Ved Vyasa' gave away his divine vision to Sanjay


Dhritarashtra's charioteer so that he could describe him the events of the upcoming war.

But, even before questions of war could begin, Dhritarashtra asked him to describe how the world looks like from space.

This is how he described the face of the world:

सुदर्शनं प्रवक्ष्यामि द्वीपं तु कुरुनन्दन। परिमण्डलो महाराज द्वीपोऽसौ चक्रसंस्थितः॥
यथा हि पुरुषः पश्येदादर्शे मुखमात्मनः। एवं सुदर्शनद्वीपो दृश्यते चन्द्रमण्डले॥ द्विरंशे पिप्पलस्तत्र द्विरंशे च शशो महान्।

—वेद व्यास, भीष्म पर्व, महाभारत


Meaning:-

हे कुरुनन्दन ! सुदर्शन नामक यह द्वीप चक्र की भाँति गोलाकार स्थित है, जैसे पुरुष दर्पण में अपना मुख देखता है, उसी प्रकार यह द्वीप चन्द्रमण्डल में दिखायी देता है। इसके दो अंशो मे पीपल और दो अंशो मे विशाल शश (खरगोश) दिखायी देता है।


Meaning: "Just like a man sees his face in the mirror, so does the Earth appears in the Universe. In the first part you see leaves of the Peepal Tree, and in the next part you see a Rabbit."

Based on this shloka, Saint Ramanujacharya sketched out the map, but the world laughed