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We recently interacted with the management of Century Plyboard India Ltd. who indicated that demand has been tepid Q3-to-date with December 2022 likely to be the decisive month for the quarter.
Medium density fibre brownfield expansion at Hoshiarpur (Punjab) is likely to be commissioned by end-Dec-22 (earlier guidance was Nov-22) and management expects to start its ramp-up from mid-Q4.
Company has taken no material price increases across segments in Q3-to-date as raw material pressures (except for wood used in MDF) have abated.
Management indicated that the Q2 blended margins (~17%) are sustainable in the near term.
Company had guided for more than 20% YoY revenue growth in FY23 (implying H2 FY23 growth of ~5% YoY), which we believe is achievable. We tweak our estimates for FY23E-FY25E by 2%-3% respectively.
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