ICICI Securities: Century Plyboards Q1 Review - MDF, Particle Board Segment Gains Impressive Traction 
A crane moves prefabricated wooden sections in Canada. (Photographer James MacDonald/Bloomberg)

ICICI Securities: Century Plyboards Q1 Review - MDF, Particle Board Segment Gains Impressive Traction 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

While Q1 FY21 result was largely in-line with our expectations, the key silver lining for Century Plyboards India Ltd. was impressive recovery in medium-density fibreboard / Particleboard segment which delivered positive growth in July 2020.

The core segments – plywood and laminate on the other hand are expected to achieve 70-75% of Q2 FY20 sales in Q2 FY21 and normalcy (100%) in Q4 FY21.

Higher credit offering to its dealers and timely vendor payments in first quarter led to an increase in working capital requirements which in turn led to a rise in overall debt levels to Rs 2.43 billion (versus Rs 1.88 billion in March 2020).

The management indicated that debt has already started descending with strong cash collections witnessed in July 2020.

Click on the attachment to read the full report:

ICICI Securities Century Plyboards Q1FY21 Results Update.pdf

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