Porinju buys more of Sarda Plywood Industries

Here we track the latest buys and sales and portfolios of famous investors
Post Reply
Pee Vee
Site Admin
Posts: 453
Joined: Mon Dec 26, 2016 10:45 pm

Porinju buys more of Sarda Plywood Industries

Post by Pee Vee »

Porinju already has a holding of 1,00,000 shares of Sarda Plywood Industries. he bought 50000 shares today at Rs. 131.34.

Sarda Plywood Industries Limited is a pioneer in the Indian Plywood Industry and one of the first few manufacturers to venture into producing a wide range of plywood products. Its plywood products are sold under DURO range of brands across the nation and have a strong predominance in the market because of best quality and constant up gradation through research and development. The Company also owns a bought leaf tea processing factory in Assam.

SEGMENTWISE PERFORMANCE

Plywood

During the year 2015-16, segment revenue decreased from Rs 178.05 Crores to Rs 158.37 Crores i.e. a decline of 11.05%. The Company has earned segment profit before tax and interest of Rs 0.47 Crores as against Rs 5.53 Crores in the preceding financial year.

Plywood demand scenario has continued to remain sluggish during the financial year 2015-16, due to slowdown in real estate and housing and infrastructure sector. Availability of raw materials has affected the sales during the year. However Company believes plywood demand is set to witness a jump owing to a rise in real estate demand and the Centre's plan to establish smart cities and other urban infrastructure projects. Also, with increasing labour cost in China, producers there are losing out to competition from India and other neighboring countries. This is helping Indian manufacturers to plan capacity additions and step out aggressively to source raw material.

Consequently, a sign of growth and development is expected with a stable Government at Centre and its emphasis on infrastructure development. Falling inflation and interest rates and GST implementation will be a game changing reform for Indian economy by developing a common Indian market and reducing the cascading effect of tax on the cost of goods and services.

The Management does not foresee any significant threat to the industry and/or Company from any product and/or sector.

Tea

Segment revenue during the year was Rs 23.98 Crores as against Rs 24.81 Crores in the preceding financial year representing a decline of 3.34%. Segment loss before tax and interest is Rs 1.02 Crores as against Rs 0.78 Crores profit in the preceding financial year.

The financial performance of the company with respect to operational parameters has declined during the year due to increasing overhead cost and lower sales realization. Uncertainty in weather condition has caused fall in production of quality tea leaves.

Since the Company’s tea operations are in the bought leaf segment, availability of green leaf and its prices will remain a matter of concern. The sectoral outlook is not very bullish for the coming months and remains neutral. The Management does not foresee any significant threat to the industry and/or to the Company.
Post Reply