Century Plyboard is looking to achieve 15 to 20 percent growth in financial year 2019, said Keshav Bhajanka, executive director of the company, adding that the margin expansion was sustainable going forward.
Century Plyboards has posted a strong set of earnings in the first quarter. The year-on-year (YoY) revenues for the company were up 22.5 percent at Rs 537.3 crore versus Rs 438.6 crore. The YoY EBITDA too was up 41.7 percent. Blended margins have expanded to 16 percent, while plywood segment margins have expanded to 17.4 percent.
"The delayed price hikes due to GST last year aided margin expansion," said Bhajanka.
Talking further about the business, he said that the medium-density fibreboard(MDF) business saw more than 55 percent of capacity utilisation. "The 10 percent growth in the segment is likely to continue going forward as well," said Bhajanka.
"Now with e-Way bill, the compliance will increase and there will be a bigger shift to the organised sector," he added.