For 4QFY2018, Century Plyboards Ltd. (CPIL) underperformed both on the top line and bottom line front. Total revenue for the quarter remained flat at `544cr compared to `526cr for the year ago period. Operating margin contracted by 60bps on account of increase in raw material cost. On the bottom line front, CPIL reported a decline of ~36% yoy to `35cr.

Outlook & Valuation: We expect CPIL to report top-line CAGR of ~11% to `2,537cr over FY18-20E. On the bottom-line front, we estimate ~18% CAGR to `230cr over the same period. Considering the overall poor performance of
4QFY18 results and depreciation of currency by 10% since Jan 2018 which would further impact the overall profitability (as company imports 50% raw material), we maintain Neutral rating on CPIL.

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