Century Plyboards maintains its earnings before interest, taxes, depreciation and amortisation (EBITDA) margin target at 12-14% for this financial year and the next.

However, Executive Director Keshav Bhajanka said the 15% margin target for medium density fiberboard (MDF) may be difficult to achieve in the financial year ending in March 2025.

Bhajanka noted that timber prices remain high, particularly impacting MDF and particle board segments, where costs have more than doubled in some regions over the past year. However, he does not expect further price increases or reductions in the near term.

Century Plyboards is investing over ₹500 crore in a new particle board plant and around ₹100 crore in a new plywood at Hoshiarpur.

“In terms of debt, we have always said that we would be comfortable with a debt-to-EBITDA ratio of 1:1 or lower debt. Going forward, maybe for a couple of quarters, that ratio might be breached, but otherwise, we will be within the same,” Bhajanka said.

Also Read: Century Plyboards eyes over 15% revenue growth in FY25

In October-December 2024 (Q3FY25), Century Plyboards reported a 22% revenue growth to ₹1,140.5 crore, while EBITDA rose by the same percentage to ₹129.5 crore. However, net profit declined by 7.3% to ₹58.4 crore.

The company’s market capitalisation stands at approximately ₹17,793.83 crore, with its shares gaining around 9% over the past year.

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