Plywood maker Greenply Industries reported 48.38 per cent decline in its net profit for the quarter ended December 31, 2010, at Rs 7.19 crore due to losses incurred by two new facilities.
The company had posted a net profit of Rs 13.93 crore in the corresponding period previous year.
The net sales, however, increased by 44.86 per cent to Rs 316.54 crore from Rs 218.52 crore in the year-ago period.
"The dip in net profit is due to losses coming in from our two new facilities in Uttarakhand and Himachal Pradesh.
This is the initial period and hopefully we will post positive results in the fourth quarter," Greenply Industries Joint Managing Director & CEO Saurabh Mittal said.
The company has incurred a loss of Rs 12.11 crore due to low capacity utilisation and product-mix at the new medium density fireboards (MDF) plant at Pantnagar and laminate unit at Nalagarh, he added.
Mittal said Greenply is investing Rs 25 crore to double the plywood making capacity at its facility in Rajkot from 3.75 million sq mt at present.
Besides, the board has decided to sell its wind mill unit at Seilanallur, Tirunelveli, Tamil Nadu.
The company currently has six manufacturing facilities across the country that produces plywood, laminate and MDF.
Shares of the company were trading 2.69 per cent up at Rs 184.95 during late-afternoon on the Bombay Stock Exchange.