Century Plyboards (India) Ltd (NSE: CENTURYPLY) Q3 2025 Earnings Call dated Feb. 11, 2025
Corporate Participants:
Navin B. Agrawal — Head, Institutional Equities
Sanjay Agarwal — Managing Director and Chief Executive Officer
Keshav Bhajanka — Executive Director
Nikita Bansal — Executive Director
Arun Julasaria — Chief Financial Officer
Unidentified Speaker
Analysts:
Shubham Kadhi — Analyst
Bhavin Rupani — Analyst
Hrishikesh Bhagat — Analyst
Sneha Talreja — Analyst
Keshav Lahoti — Analyst
Praveen Sahay — Analyst
Harsha — Analyst
Amit Purohit — Analyst
Utkarsh Nopany — Analyst
Shivkumar Prajapati — Analyst
Rishab Bothra — Analyst
Presentation:
Operator
Now being recorded hello, ladies and gentlemen, good day and welcome to Century Plywoods — I’m sorry, Century Plywoods Limited’s Q3 FY ’25 Result Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the management’s opening remarks. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Naveen Agarwal, Head, Institutional Equities. Thank you, and over to you, sir.
Navin B. Agrawal — Head, Institutional Equities
Thank you good afternoon, ladies and gentlemen. I’m pleased to welcome you to this financial results conference call on behalf of Century and SKP Securities. We have with us Mr Sanjay Agarwal, MD and CEO; along with Mr Kesha Bhajanka, Executive Director; Mrs Nikita Bansal, Executive Director; Mr Arun Julasaria, CFO; and Mr Sumant, CEO for the MDF business. We’ll have the opening remarks from Mr Sanjay Agarwal followed by a Q&A session. Thank you, and over to you, Mr Agarwal.
Sanjay Agarwal — Managing Director and Chief Executive Officer
Thank you, Naveen. Thanks for hosting the calls for us. So good afternoon, ladies and gentlemen. Welcome to the FY ’25 Q3 earnings call for Century Pry. Before we begin, I would like to provide the standard disclaimer. This discussion will focus on the company’s historical performance and future prospects and is not intended as an invitation to invest in the company. The results and the analytical presentation have been shared with you and are available on the stock exchange website. I assume you have reviewed this, so I won’t go over the figures in detail. Q3 FY ’25 results aligned with our expectations, year-over-year, standalone revenue saw a solid 10.3% increase, rising from INR910 crore to INR1,003 crores. While consolidated revenue grew by 20.7% from INR947 crore to INR1,143 crores. The company’s overall EBITDA margin across all segments stood at 11.5% in Q3, down from 12.6% in Q2. This decline is primarily due to lower volumes in Q3 compared to Q2, which is typically given the festive season in Q3. The plywood segment is performing well, ranking among the fastest-growing segment in the building material industry. It recorded a 19.2% year-on-year revenue growth in Q3. With a Nine-Month FY ’25 increase of 18.5% over Nine-Month FY ’24. The EBITDA margin for Nine-Month FY ’25 rose to 14%, up from 12.1% in Nine-Month FY ’24, driven mainly by higher volumes. The Leminate segment is facing challenges with revenue declining both year-on-year and Q-on-Q. Despite sales pressure, the company maintained Q3 EBITDA at Q2 level by optimizing marketing expenditures standalone MDF revenue remained relatively flat Q-on-Q with a 2.6% year-on-year growth. However, standalone EBITDA improved to 16% in Q3 from Q2 due to better production efficiency. On a consolidated level, MDF revenue grew by 7% quarter-on-quarter and an impressive 53% on year-on-year. Notably, our newly established plant at Budwell is now EBITDA-positive. The Particle Board segment experienced a 3.1% Y-on-Y revenue decline with an EBITDA margin of 4.8% in Q4. This was primarily due to lower volumes and increased raw-material costs. We are setting up a continuous process facility aimed at improving quality and reducing costs. The operations expected to commence in the first-quarter of next fiscal year. While we anticipate growth and profitability to improve once the facility is operational. Growth may remain flat until then with continued pressure on margins. With that, I conclude my opening remarks and welcome any questions you may have. Thank you.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask questions may press star and one on their touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles the first question is from the line of Shubham from 3A Financial Services. Please go-ahead.
Shubham Kadhi
Hello. Hello.
Sanjay Agarwal
Hi, Subam.
Shubham Kadhi
Hello, sir. So I just one question was regarding what is your outlook on the timber prices globally for the next one or two years.
Sanjay Agarwal
You have some idea of Likita. If you have some idea, I don’t have any idea about.
Keshav Bhajanka
I will just take that up yeah if you look at imports into India in terms of timber imports, they are not very substantial as far as our industry is concerned. Paper has started importing some amount of chips or — and some amount of pulp, which means that domestic prices are now more or less falling in-line at international prices. So the only conclusion we can draw here is that going-forward, there will be the possibility to import chips if prices rise further. But having said that, we don’t see the scope for prices rising much because of this parity.
Shubham Kadhi
Okay, sir and so mainly, if we see our domestic prices, as you said, are in-line are going to be in language global. So when can we expect them to fall like previously you had said like in our — this cycle will continue for another year or so. So post that, can we see an improvement in margins?
Keshav Bhajanka
So again, the same statement I made last-time, the hope is that within that time period, prices will start reducing. As of now, it’s not happened, but going-forward, definitely the prices today seem to be on a much more elevated level. So I think that within the next year or two, they will normalize.
Shubham Kadhi
All right, sir. That’s it from my end. I wish you the very well.
Sanjay Agarwal
Thank you.
Operator
Thank you. The next question is from the line of Bhavin Rupani from Investec. Please go-ahead.
Bhavin Rupani
Hi, sir. Thank you so much for the opportunity. My first question is related to plywood. Sir, in Q2, we had imported timbers for plywood from various Southeast Asian countries, including Brazil, Africa. And now given INR is depreciating against USD, do you think we are still better-off if imports or are we increasing our sourcing from the domestic players now?
Nikita Bansal
Yeah. So there is a purchase decision process that we have so we keep evaluating from time-to-time. So there are even various types of there are a, there is eucalyptus so there are various forms of material also that we can get-in imports. So it’s not necessarily just eucalyptal, there is also a cashia, there is also pine. So there are various raw-material options that are available. So we keep deciding basis pricing and what is the processing cost of that in our factories? Because a lot of the things that we get, we save a lot in terms of drying and because they come in the dried state. So I don’t think it’s a simplistic answer, just because USD cost is a concern right now and we will have to change our decisions. Currently, we don’t, but we keep evaluating it. It’s very dynamic. It also depends on what is the pricing at that moment in the. Currently, we are continuing with import. Things may change in a month. But as of now, it is still making sense to continue with import.
Bhavin Rupani
Okay. And so what is the proportion of imports as of now?
Nikita Bansal
So currently I would say that we are 75%, 80% depending on import for plywood raw materials and about 20% is domestic.
Bhavin Rupani
Got it. And we have also committed INR150 crores for plywood. Can you throw some light here, what is the location? What is the capacity?
Nikita Bansal
Yeah. So we are planning to put up a plant in, we had actually declared this a little while back, but then we had put it on-hold because of the raw-material fluctuation and we had also started evaluating another location, which is Oressa, Andhra, Pradesh, Boarder, etc. So after all contemplation, we have come to the conclusion that currently it makes sense to put up a plant in Hishadpur. So the work has started in the planning stages. We will soon — we already have the land and some basic work had already been done in the first plan that we’ve gone ahead about a year and a half back. So I think it will be a year from now where we will have the plant — plant ready and operational. In the meantime, we all — we are already augmenting capacity in our existing plants like we have a plant in West in Kandla, so we are augmenting capacity there. Some have already happened, some will happen more in next three months, three to six months. So because we are growing, we need to keep ensuring that we are increasing our capacity. I hope I’ve been able to answer your question.
Bhavin Rupani
Yes, a follow-up on that. So what is the proposed capacity on this new plant?
Nikita Bansal
So it would be about per day capacity about 50, so 50,000 into 25 working days MA. We work on — that would be about.
Bhavin Rupani
MA. What would be in terms of? Okay. Fair enough. And what is our current plywood capacity and what is the incremental brownfield that you are working on? And where will be our capacity post this brownfield work? Hello.
Operator
Ma’am you are not audible right now?
Nikita Bansal
Sorry, can you repeat your question? What was your follow-up question?
Bhavin Rupani
What is our current plywood capacity? And you did mention that we are working on some brownfield expansions at Kandla. So what would be our capacity post the brownfield expansions?
Nikita Bansal
Okay. So currently, we have about 3,40,000 CBM capacity and I think we will be expanding it by so I didn’t circle back with the exact figures because I know everything in MA and I’ll just have to convert it into CDM and let you know. So I’ll circle back-in this in next five minutes and as you know.
Bhavin Rupani
All right. My second question is related to laminates. Our new laminate plant has started — has a capacity of almost 9 lakh sheets. Currently, if we reduce standalone volumes from the consol volumes, the volumes for subsidiary comes to somewhere around 1 1,10,000 sheets, which means we are running at almost 50% utilization, right? However, we still seem to have been making EBITDA losses over year. What do you think — what is the reason behind this? And when do we think we will breakeven from this plant?
Keshav Bhajanka
So again, when you look at this capacity, the number of sheets that comes in the form of quantity, but it can be a sheet of 6 mm or it can be a sheet of 1 MM. Now of course, if it is a sheet of 1 mm, the profitability is going to be far lower. If it is a sheet of 6 mm, the realization profitability both will be far higher. So because of this, I think currently the numbers that you are seeing, they are slightly skewed. They are skewed towards lower-value products. Hence, you’re seeing in terms of quantity, a good increase, but in terms of value, a lower increase. So going-forward, the capacity utilization is going to be far higher. I think here rather than looking at it from the point-of-view of numbers, we should look at it from the point of value.
Bhavin Rupani
Got it. And when do you think we will breakeven or some value or utilizations, if you have it in your mind?
Keshav Bhajanka
Here next year-by Q2, we should be looking at breaking only as far as laminate is concerned?
Bhavin Rupani
Okay. And any breakup over your possible — what is the domestic volume right now, domestic versus exports? What is it right now and.
Keshav Bhajanka
We don’t share that information.
Bhavin Rupani
Got it. And next question is related to particle board, sir. How should we understand the utilization of particle board for year-one and year two?
Arun Julasaria
Sorry, what was the question?
Keshav Bhajanka
Sorry, I couldn’t hear the question. Can you repeat that once, please? Can you repeat the question, please?
Operator
MR. Rupani?
Bhavin Rupani
Yes. So this is — yeah. Yeah. So next question is related to particle board, sir. How should one understand the utilization of particle board for year-one and year two.
Keshav Bhajanka
For the new capacity?
Bhavin Rupani
Yes, sir.
Keshav Bhajanka
So once the new capacity comes on-board, we will pretty much be putting a hold-on the current capacity. The volume will be transferred to the new line because the operating — the operating parameters in the new line will be far better. It’s a continuous press versus a press, which we currently have. So by definition, will be lower, resin consumption will be lower and EBITDA will be higher. So I think within the first year, we will be able to hit close to 50% plus capacity utilization. Of the standalone new line capacity? And secondly onwards, we’ll ramp-up.
Bhavin Rupani
Got it. And sir, last question is related to tax rates. So we have two new plants, plant, particle board and laminars, what — I’m presuming tax-rate over there are lower. So how should one understand what would be the blended tax-rate for Century as a whole?
Keshav Bhajanka
So the tax-rate for the unit for Century panels is lower, but the tax-rate for our Chinnai plant is going to be in-line with the tax-rate for the company. So I think CFO can answer this better, but the basic lower tax benefit that we’ll get will be from, which means from the new MDF plant, the new plant and the new PV planet. CFO if you would please clarify.
Arun Julasaria
Yes, this particle road plant at is coming in the middle of Century only, their applicable tax-rate is 25% and new company which we have owned, Century which is running our new MDF and new and new PVC bolt plant 15%.
Bhavin Rupani
Sir, any sense on the blended rate it could be somewhere around 23%.
Arun Julasaria
The profitability of both. So difficult to imaginate the moment. So you can say in-plant, we will have for this financial year. But we may not really taxpayer one year depending upon what possibility to use this next year?
Bhavin Rupani
Got it. Fair enough, sir. Thank you so much.
Nikita Bansal
I would like to just answer your question on plywold. So the Sharpur capacity at full utilization would be about 80,000 CBM. And as far as the expansion in our West and some other factories, it’s about 15,000 to 20,000 CBM. Currently, we are already at a very-high utilization percentage. So because of that, we are expanding. So I think we are at 90% to 95% utilization capacity already.
Operator
Thank you, ma’am. So the next question is from the line of Rishikesh Chandrakan Bhagat from Kotak AMC. Please go-ahead.
Hrishikesh Bhagat
So on the MDF South capacity, is it fully 950 CBM that is installed or is it lower today.
Unidentified Speaker
So right now it is a bit lower. I would say the capacity right now is more around 750 to 800 CBM per day. When we take the press extension, the capacity will reach to 90 CBM to about 1,000 CBM that you mentioned. Recently, we’ve seen a slight increase in capacity on account of installation of pre-heater. So just to summarize, right now we’re at about 800. We will go up to INR950 to 1,000 after the little bit of capex that we take-in terms of line extension?
Hrishikesh Bhagat
Sure. So effectively, if I work with 800 per CBM, you are guys are already above 50% utilization, at least in the South capacity. So the question is more to do with in terms of the South production, is it now fairly stable in terms of mix like in terms of high-grade MDF in or is it largely still a low-grade MDF in terms of commodity? That’s what the question is.
Keshav Bhajanka
I see. So basically in any new plant, you will first start selling the mass products and then gradually as you know, as you delve deeper into the market, you will start selling the value-adds. So currently, the majority of our products are the lower-end DI category, Premium-Plus,, etc., takes some time to ramp-up and we are ramping-up. But I think next year towards H2, you will see us read somewhere close to the same figures that we have in in the unit. Last quarter, you will also see that we have taken a hit because of some degrade that we have had to — those initial days, we had a lot of degrade now we had to get rid of that. It was block in my plant. So because our realizations have been lower, this quarter realizations will look fairly better.
Hrishikesh Bhagat
Okay. So the purpose from more from the — apart from the realization, the idea is that if you start moving to high-grade MDF, then potentially from the incremental utilization standpoint, probably it should peak around somewhere around 80% 85. That’s what the point is in the sense once the stability and once you have the market in-place in terms of.
Keshav Bhajanka
Absolutely correct.
Hrishikesh Bhagat
Yeah. Okay. Okay. The utilization should peak at 8%, 85%. That’s what the question is. Yeah.
Keshav Bhajanka
On the product mix. See, for us, the ideal scenario is utilization peaks is 75%, that means 100% is premium, but I don’t see that happening. But still, you’re absolutely right. You can take 85% as peak utilization, considering the quantum of premium products we are looking to add.
Hrishikesh Bhagat
Okay. Thanks. Thanks.
Keshav Bhajanka
Thank you.
Operator
Thank you. We’ll take the next question from the line of Nehar Talreja from Nuvama Wealth. Please go-ahead.
Sneha Talreja
Hi, good afternoon, sir, and thanks a lot for the question they have.
Sanjay Agarwal
Hi, sir.
Sneha Talreja
Just two to three questions from my end. And sorry if at all, I’m repeating it. Just wanted to understand the scenario on the plywood segment. We’ve seen a continuous outperformance coming in from you. Wanted to understand if the industry is growing that strongly, how are we gaining market-share, some reasons and how sustainable these market shares could be and your outlook on this particular segment?
Nikita Bansal
So see the industry itself, if I really look at plywood as an industry, I think we’ve said it several times that plywood as an industry will continue to grow at 5% to 7% year-on-year. It won’t grow in double-digits just because there are a lot of other wood panel products like MDF, particle board that are coming in. Growth will continue at this 5% to 7%. And we have always said that as a company, if I really look at the industry, we are — we used to be a few years back about this basis turnover, we used to be about 4% to 5%. Today we’ve reached 9%. So somewhere we are gaining market-share and that has been through our various strategies that we keep doing and our goal is ultimately in the next four to five years to reach 15% of market-share. But having said that, is there a shift towards branded? Is there a thing there is really no study or data on plywood industry that is there and easily available. So everything is extremely ad-hoc and something that is a big perception that we have. So it’s very difficult for me to really say that is there a shift in brand — unbranded to branded or what are we doing good? We are doing — there are so many things that we are doing at the same time, what is really working to give us that result, I think it’s a combination of everything that is helping us results our delivery. So I hope I’ve been able to answer, is there anything particular more you would like to know, I would expand on that.
Sneha Talreja
No, I think plywood, okay, I’ll put it other way. What are the things which are not succeeding in the laminate segment to put it as I mean, you’re outperforming significantly in the plywood front. What are the things you’re trying to replicate in laminates that’s not working out for you?
Keshav Bhajanka
I think in laminates, we have not been able to execute. We had good strategies. We’ve been able to devise a number of new interventions, for instance, increasing team size for architect working, for instance, introducing semi-claminates, but the execution on round hasn’t been as good as. And I think towards that end only, we have now taken the decision to bring about a change in leadership. I’m sure with the change in leadership and with a course correction that we’ve already taken, we should be able to execute better on-the-ground and that should result in better numbers going-forward?
Sneha Talreja
Understood. Any change in guidances that you would want to give out or any new guidances for FY ’26 for all the divisions?
Keshav Bhajanka
Not currently.
Sneha Talreja
Not currently. Sure. Let me get back. Thanks, Keshav.
Keshav Bhajanka
Thank you.
Operator
Thank you. The next question is from the line of Keshav Lahoti from HDFC Securities. Please go-ahead.
Keshav Lahoti
Hi, thank you for the opportunity. Sir, firstly, a small clarification. The guidance, hi, sir, the guidance mentioned in PPD is for Q4 or H2.
Nikita Bansal
Q4.
Keshav Lahoti
Q4. Okay, understood. And secondly, want to understand, firstly, congratulations on a stellar MDF performance to your peers have reported the numbers. So kind of 15% healthy margin on MDF side while peers are talking about increase in timber cost for this quarter also, while you have mentioned your timber cost for MDFF decreased in this quarter. So what things you are doing different? Please let us know.
Unidentified Speaker
Yeah. So I had this answer. We’ve invested significantly behind production efficiencies. So that’s done us well this quarter. Also on the product mix side, while in South, we are still ramping-up to alloyed products. In North, we are focusing a lot on our value-added products that also helps us in profitability. So I would say these are the two main reasons that we are driving profitability for us.
Keshav Lahoti
Understood. And your timber costs have reduced sequentially, right, and for MD&O?
Unidentified Speaker
Not really. Look, timber cost is something that is not fully in the control of the company any which ways. So we — it’s — it is what is for everyone, right? In North, our timber basis are already seven-plus in South we are at about 6 plus. So that’s moving in-line with industry. We haven’t seen a reduction in cost Q2 and Q3.
Keshav Lahoti
Okay, got it. And lastly, how should we read the situation in particle board industry? While the margin for particle board industry is so low, recently a large capacity by Greenland have got commissioned and now essentially also plan to enter this market and the industry margin is so low and when we are seeing supply coming up in this industry, how will the industry scenario looking for next one or two years?
Unidentified Speaker
You’re right, I think every industry goes through these phases of overcapacity and under-capacity. Particle boat for sure, we’ll see a lot of capacity coming up like you rightly mentioned. Also, margins are under pressure primarily on account of increased raw-material prices and also sales pressure. But this is a time for the industry to also innovate and shut back, right? So new technology will come in, which will give certain efficiencies, people invest more behind other kinds of products. So I think this is a good type of industry to sit back and reflect on what more value-added actions can be taken. But these are cycles they happen.
Keshav Lahoti
Understood. Got it. Should we expect particle boat to breakeven at EBITDA as well as PAT in FY ’27?
Unidentified Speaker
Yes, that’s what you would aim for.
Keshav Lahoti
For both the also break-even right.
Unidentified Speaker
Sorry, guys can you repeat the.
Keshav Lahoti
Will also happen in FY ’27?
Keshav Bhajanka
Yes, that is gonna be the end that will be.
Keshav Lahoti
Okay. Okay, got it. Thank you.
Operator
Thank you. The next question is from the line of Praveen Sahai from PL Capital. Please go-ahead.
Praveen Sahay
Yeah. Thank you for opportunity and congratulations for a best set of numbers. My first question is related to the MDF. As you know in the previous participants and sir, you mentioned that the improvement in the GM is because of a product mix change. But if I look at your standalone, there is not much improvement in the realization. So sequentially, I’m looking at the numbers. Realization is almost flat, whereas your gross margin profile has improved. So what exactly.
Keshav Bhajanka
So if you look at our realizations in quarter-on-quarter our realization has gone up by 4.4%. And in MDF, you see there is also a product mix change that might have taken place because of which you’re not seeing the realization improvement. Like-for-like, if we sold the same product, there will be an improvement in realization. This could be due to a mix change within plain NBF.
Praveen Sahay
Okay. Got it. And second question is, as you had also given the guidance for the 4th-quarter around 40% plus of sales that required around if considering the realization to be same around 55% plus of a growth in the volume. So do you expect even a lot of capacities are coming in, you’re able to maintain that more than 50% volume growth numbers for MDF?
Keshav Bhajanka
I think most of the new capacities have already come in. So considering that we were able to do it as of the previous quarter, I think we should be able to maintain our guided growth.
Praveen Sahay
Okay. Okay. And on the plywood side, definitely like last 3/4 volume numbers has been very strong. And like how — like way forward from here onwards, what exactly the capacity addition is a more driver you are looking at to further increase your market-share and what exactly you are looking at to increase the market-share there over here when you are at the somewhere around 9% of market-share already. So any color on.
Nikita Bansal
I think definitely capacity expansion is to cater to the increase in-market share that we would like to do. So the growth will be catered by expansion. But at the same time, I mean, we have to continuously keep deploying various strategies on-ground whether it be in terms of you know, various programs that we keep doing, whether it be in terms of availability, whether it be in terms of channel expansion, whether it be in terms of really developing our 710 brand because that is where the belly of the market lies further, you know, growing the brand of Century Fly. So I think it is not very easy to say that there is one strategy that we are deploying and that is what is going to lead to result. So I think it’s a combination of lot of activities happening, whether it be in teams of team, in terms of building up the team, in terms of digital infrastructure. So there’s so many things that go in. It’s just that the intention is towards reaching that. I mean, there are a lot of things that may — in the last, I think from COVID to now, there were a lot of things that worked in our favors. There are lot of strategies that failed, but that does not mean that we stop putting those efforts and ultimately some result into what we have been able to gain in some 5% to 9%, you know. So similar things will keep happening.
Praveen Sahay
So in this segment, how much in the last nine months?
Operator
I would request you to rejoin the queue for follow-up questions.
Praveen Sahay
Okay.
Operator
Thank you, sir. We’ll take the next question from the line of Harsha from Key Securities Limited [Phonetic]. Please go-ahead.
Harsha
Yeah, thanks for taking my question. Firstly, congratulates for your results. And my question is like how you managed to achieve your year-on-year growth despite weak market segment and how will you see your market in next six months? Hello.
Sanjay Agarwal
You see, you have seen that the growth has basically come from two sectors MDF, where we have installed new capacity and we also as a company, Kesao as the leader for MDF has taken it very strongly and full team has been put into pressure into South India and the growth is coming from South India. So the plant has reached the good capacity also as we had earlier thought of. As far as plywood is concerned, of course, whatever we have been trying too many things, new, new things, some of them have really failed and we have done away with them certain things which have really succeeded and they are now pushing harder on them. So, but it’s a very, very difficult situation in these markets. Right now, yes, we are doing well this year. Next year also, we will probably look for similar kind of growth. And I hope that the markets will also improve by then the government is also trying to do a lot of things. I hope this kind of a growth will continue.
Harsha
Yeah and my next question is how would you see a market in next six months?
Sanjay Agarwal
Yeah, that’s what actually. I believe that the markets are only going to improve because the market has been slow for some time. And now with the wind in Delhi and Maharashtra and one of Canada State High estate another estate BJP won. I think they have also. They must-have got their confidence back and I think they will start now spending the money also a lot in the investment cycle will also start and they have requested the or the businessmen also industrialists also to increase their investments in the country. I’m sure things are going to change, they cannot remain as today because the markets are slow. We can see in all the results we are seeing for 3rd-quarter. I certainly believe that the H1 of the next year will be much better than what we have today.
Harsha
Okay, sir. Thanks. That’s it from my side.
Operator
Thank you. We’ll take the next question from the line of Amit Purohit from Elara. Please go-ahead.
Amit Purohit
Yes, sir. Thank you for the opportunity. Hi, everyone. Hi, sir. Sir, on the volume growth outlook for plywood, so we have — I mean, if I look at the historical trend has been that for FY ’24 was not so great in terms of the revenue growth for us in the plywood. And then FY ’25, we saw a very strong growth likely are in more than teens kind of. Would you say that now the strategies are in-place, which will give you confidence of a double-digit outlook in plywood should not — it’s a doable thing that is — I don’t know if you’ve answered this, but just wanted to check your thoughts on this.
Nikita Bansal
Yeah. So, see, we have given an outlook that in Q4 we will grow at that 12% going-forward and that has been our statement throughout that we will grow at 12%. But see, we cannot predict any year and that is why we always give a number that we feel can be done. So if you see this year my — I have been saying 12%, but we are outperforming that 12%, right? But we still give a conservative number just because the market is so dynamic. It may not be just strategies alone that play a role. So yes, we may have got strategies right for this year, whether they will continue to work next year because there is so much how the market changes, how the scenario changes, what does the competition react to different things. So I think are right now not talking about those numbers for next year whenever we come with that, we will discuss it more. But I think as a division, we will always give numbers, which we feel are doable. If we outperform great if we don’t — but yeah, currently, we are on the track that, yes, we’ve got something right and it’s doing right for us. Whether it will continue, we don’t know.
Amit Purohit
Okay. Okay. No, I just was wondering if this is a base effect thing or would it — this is something more to it?
Nikita Bansal
And is there ever a strategy that is set and go for all years? I don’t think so. It has to be dynamically to keep changing strategy, to keep adapting to various market scenarios. So I would say let’s see how everything unfolds. Yes, we are definitely on the right path and we definitely have the right vision in-place yeah.
Amit Purohit
And would the loyalty program that paint and the carpenter loyalty program, that allocation, how it would have moved over the last one or two years, if you could share that.
Nikita Bansal
You mean in terms of budget?
Amit Purohit
In terms of — yeah, yeah, the budget probably say, ’22, ’23, ’25 till now what would that if anything which will give some sense on.
Nikita Bansal
So we actually don’t budget it. It is something we generate within our or pricing itself, so there is no budget as such. And at the same time, these are two fine details for us to share over this call.
Amit Purohit
Thank you. Sure. Okay. And second, on the MDF part, I wanted to understand, I mean, mean your guidance of 15% for Q4 that presumes that the standalone MDF would have at least 18% to 19% kind of EBITDA margin, right? Is that a fair — if this 15% first is on consol right now because 40% Y-o-Y growth would also be consoled for Q4.
Keshav Bhajanka
Yes, earlier, we had given numbers for profitability on standalone, but for volume on consol, this is because we weren’t very sure of how that would scale-up. 15% was a standalone and we are sure that 15% can be achieved for standalone. If you’re looking at consol, I would say that the blended EBITDA numbers would be closer to what they were in this quarter.
Amit Purohit
Sure. Okay. Okay. And there is one, I mean, I was just doing a math, I don’t know if you would be able to help me out in this MDF, which is basically the consol minus the standalone performance and I see significant savings on the overhead cost especially on the new plant. Anything one-off thing or should we take that as a structural?
Keshav Bhajanka
I think it’s operating leverage and the benefit of economies of scale. So there has been nothing significant that has gone off in the current quarter.
Amit Purohit
Sure. I’ll take this offline with answer. Thanks. Thank you so much.
Keshav Bhajanka
Thank you.
Operator
Thank you. The next question is from the line of Putkarsh Nopani from BOB Capital Markets Limited. Please go-ahead.
Utkarsh Nopany
Yeah, hi, good afternoon, sir.
Sanjay Agarwal
Yeah. Hi,.
Utkarsh Nopany
Yeah. Sir, my first question is on-again on MDF segment margin. So I just wanted a clarification from you, like if we see the industry-leader margin has contracted sharply on quarter-on-quarter basis in December quarter, whereas if we see for our MDF segment margin, the EBITDA margin without the impact of ForEx, there has been a 700 bps improvement on a quarter-on-quarter basis despite our realization going down by 2%. So can you please explain why our margin has improved on a quarter-on-quarter basis, which is an aberration compared to the industry trend?
Keshav Bhajanka
Hi. I think, you know, it is better efficiencies as far as our new plant is concerned. Last quarter, if you look at it on a standalone basis, while we weren’t very far off from where we are in the current quarter, but on a consol basis, we are very, very far apart. So the new plant, of course, there have been operating — operational efficiencies that we have brought in. Alongside that, I think that in terms of timber, we have benefited slightly from having higher inventory, which has reduced the cost. But overall, I think this is predominantly due to operating leverage and due to operating efficiencies that we are able to generate.
Utkarsh Nopany
Sir, on a quarter-on-quarter basis, your revenue has remained roughly same. So the operating leverage benefit would not have kicked-in? And if you could quantify what would — what would have been the reduction in the timber cost for us on a quarter-on-quarter basis? And what.
Keshav Bhajanka
Operating leverage when we are discussing operating leverage, I mean year-on-year, so the overhead cost definitely get split-up. Quarter-on-quarter, like I said, in any plant, when you’re in your first or your second-quarter, there will be wastages, there will be higher consumptions, you need to ensure quality is met. So all of those things have definitely led to us being able to give a higher EBITDA number in Q3 compared to Q2 as far as the plant is concerned.
Utkarsh Nopany
And sir, going-forward, can we maintain similar kind of a margin run-rate say from the March quarter onward, what we have delivered in December quarter at least for MDF segment?
Keshav Bhajanka
Yes.
Utkarsh Nopany
Okay.
Keshav Bhajanka
Our attempt will be to maintain similar margins.
Utkarsh Nopany
And sir, second question is like, can you please quantify what kind of a pricing action we have taken for each of our segment in December quarter and whether we are planning to take-in March quarter as well for MDF plywood and for laminate?
Keshav Bhajanka
For MDF, we have taken close to 3% to 3% to 4% blended increase pan-India as far as prices are concerned. For laminate and for plywood, I don’t think we have taken any increases as far as last quarter is concerned.
Amit Purohit
Okay. Thanks a lot.
Operator
Thank you. The next question is from the line of Shev Kumar from Ambit Investment Advisors Private Limited. Please go-ahead.
Sanjay Agarwal
Hi, sir.
Shivkumar Prajapati
Thank you. Yeah, hi, sir. Thanks for having my question. Our first question is like I guess from today onwards, BIS won some wood panel products was about to be effective. So is it effective from today like any update if you can, if you could share yes, yes.
Nikita Bansal
Hello. Yeah, I think DIS is getting effective in different products at different times. For example, plywood, it is 28th Feb is the date. I think in MDF, it is 11th or 12th Feb is the day and I think it is very like I think you have to give us a day or so to know whether it’s really got effective or not but this time it seems that the government is extremely serious about this being put into motion. In terms of import, it will be done on these days in terms of domestic. I think they are doing it in a standard manner over big, small and micro up to August yes.
Shivkumar Prajapati
Okay. And my second question is the follow-up on the previous questions. Like if I’m not wrong, you mentioned that you have taken price hike of around 3% to 4% on MDF during the previous quarter. Is my understanding correct?
Keshav Bhajanka
Can you repeat the question, please?
Shivkumar Prajapati
Like you mentioned that we have taken price hike on MDF, the previous quarter around 3% to 4%.
Keshav Bhajanka
Yes, absolutely correct.
Shivkumar Prajapati
Okay, sir. Okay. That’s it from my side. Thank you. Best of luck.
Operator
Thank you. We’ll take the next question from the line of Rishab Bothra from Anand Rathi Share and Stock Brokers Institutional Equities. Please go-ahead.
Rishab Bothra
Yes, sir. Good, sir. Yeah. Sir, wanted to understand on the demand perspective for each of the segments, what are the key drivers you see will be meaningful in next two, 3/4, which will drive demand, be it plywood, laminates, and particle groups.
Sanjay Agarwal
I think I have already spoken on this because I believe that undercurrents have been slow and government was not at a very confident footing because of the results of the annual — of the five-year central elections and then local elections. But after these three big wins and now the government has also adjusted, so I — and the kind of budget they have given. So I think all of this will actually now in few months, I think there should be a recovery and it is only — it’s a question of mindset. If people feel positive, things will become positive. So that’s why I believe that H1 should be much better than the last three, four months, five months, whatever has gone?
Rishab Bothra
I agree this on a broader level, but in case of plywood, let’s say dealer demand will be available from housing, laminates, would it be export or domestic? And in MDF and particle board, will it be OEMs or dealer distributor level? So I wanted to some color on that front.
Sanjay Agarwal
So.
Rishab Bothra
Yeah, yeah.
Sanjay Agarwal
Yeah, yeah. So as far as plywood is concerned, you know it all depends on the high upper-middle class or the upper class you know the HNI HNI is — HNI is housing actually. So I believe that a lot of sales has happened and lot of new residences and offices are getting now interial decorated. So I believe that some demand have started coming in and we are benefiting out of that only. Otherwise this kind of a growth would not have been possible. And I think this would now continue for some time and more-and-more sales are happening, we are seeing the kind of registration fees being collected in Maharashtra or in Guru they are certainly a very positive sign. Yes, of course, even after buying a person tricks probably a year to settle down his mind, who is the integrated designer, what kind of design he wants to do and all that might be happening. But I’m sure that this is what will really propel the further growth as far as plywood is concerned. As far as MDF and is concerned, I would like so to predict.
Keshav Bhajanka
I think for laminate, both the domestic as well as the export markets are going to lead to a substantial increase in-demand. Exports have been doing well for some time now and India is growing steadily in export of, right, for quite a few years. I think with the new larger-sized presses, we should be able to take advantage of this trend as well. And of course, the domestic market will continue to grow. As far as MDF and particle board are concerned, I am fairly confident that we will see an increase in domestic demand. There is growing traction and both OEM and home consumers or the retail segment, they are likely to grow in-line with the government’s initiatives towards for all and other such instance related to real-estate.
Rishab Bothra
Got it.
Sanjay Agarwal
We should see — you see two large plants of MDF came into production. One is, another Exxon had come into production and both are mostly doing well. I think both have crossed 50% capacity utilization. Because MDF is the one which is really growing much faster than plywood. A lot of furniture is getting converted into usage of MDF. So I expect that within next about a year’s time, whatever capacity has been created should be absorbed. So I don’t see much headwinds or any kind of a problem in coming time as far as these things are concerned.
Rishab Bothra
Got it. And lastly on input cost, what would be the delta in case of would the price increase, let’s say, by 5%, which segment will be affected the most? I guess laminates don’t have a timber consumption as such, large timber consumption as compared to.
Sanjay Agarwal
Timber consumption as far as luminate is concerned, is made out of creper, pepper and all that.
Rishab Bothra
Correct. So only the plywood MDF and particle board will be impacted. And if you could spell out what percentage the plus or minus is there in case of increase or decrease in timber cost by 5%.
Sanjay Agarwal
Will you react?
Unidentified Speaker
And so for MDF you know it does the price quarter-on-quarter have increased by about 5% to 7% in North and in North it’s been slightly higher. It’s about 10% to 12%.
Keshav Bhajanka
Yeah. This is for MDF related to MDF. For plywold, I think there hasn’t been any material spike in raw-material prices in last quarter, but if it has been something it is administered.
Sanjay Agarwal
I think for plywood, what has happened, we are getting good imports of core linear and linear both from different countries. So there is not one country, but many countries which are now exporting to India and the demand is being met and that is why the local price rise also had been curtailed that it is not increasing. Otherwise you would have gone to the roof. So for last about six months’ time, I don’t see any increase as far as plywood raw-material prices in India is concerned because of the import prices. And I don’t see until something very big, something which we do not see right now happens. After Trump, anything can happen of course, but I don’t see much happening really there.
Rishab Bothra
Got it.
Sanjay Agarwal
Yes, plywood is capable of taking that price rise also. It has — we have taken about 4% price rise in the this year — present year also. So next year, again, if it happens, we will be able to take a price rise.
Rishab Bothra
Got it. And lastly, if I may chip-in. Anything update on the container business? What kind of capital can we get released and how soon can it happen?
Operator
MR. Botra, could you please repeat your question? MR. Agarwal had got disconnected from the call.
Sanjay Agarwal
Yeah, please. Please go.
Rishab Bothra
Yeah. So I wanted to understand what kind of capital can we leave from the container freight business? Any update on that front? How soon that can happen?
Sanjay Agarwal
So Container Freight station very frankly is doing much better this year that much I know. But right now, I’m unable to really answer any question on that division. If CFO can throw better light, I know this division is doing much better than last year, that much I know.
Arun Julasaria
But on the of fair discussion, this business is doing good now because volume of import on Talkata product is now increasing but as such we don’t have any plan of expanding capacity in this business. Of course we are now entering into port operations also for that we have formed the separate companies into the ports so we are now working on that business also. We are also working on whether we can help some partner who can help us in this business. So a lot of things are on-going board in fact, so we shall update you at right time.
Rishab Bothra
Okay. So no plans to have as of now and fourth operations will be in a different entity.
Arun Julasaria
I think the plan, the plan is not there.
Rishab Bothra
Okay.
Arun Julasaria
We don’t have.
Rishab Bothra
Thank you.
Operator
Thank you. We’ll take the next question from the line of Bhavin Rupani from Investec. Please go-ahead.
Bhavin Rupani
Thank you so much for the follow-up, sir. Hi, sir. Sir, do we have any export obligation from our new MDF plant and particle board plant in South India? Thank you.
Sanjay Agarwal
Yes, sure.
Keshav Bhajanka
Yes, we do have an export obligation from the MDF unit. And currently, we are not in-line to meet the same because the raw-material prices have shot up drastically, but we are working on all available options and we are sure that within the six-year time horizon, we’ll be able to meet our export obligations.
Bhavin Rupani
And what is the timelines within which we have to — we have to export us?
Keshav Bhajanka
Yes. Six years.
Bhavin Rupani
Six years, sir.
Keshav Bhajanka
Yes.
Bhavin Rupani
Okay. And quantum, if that is possible?
Keshav Bhajanka
I think CFO will get back to you with exact details if I don’t have the data ready on me.
Bhavin Rupani
Got it. And sir, last question is related to plywood. I just wanted some sense which category is growing faster. Is it the one or the premium categories growing faster? And if you can give the breakup, if that is possible.
Nikita Bansal
No so we never give this breakup. But just to give you a perspective of everything, if you have to deliver 18% to 20% growth, it cannot be behind just one segment. Both segments have to grow at a very double-digit growth number for you to deliver that level. Having said that, I’ve repeated this in every call that the belly of the market lies at the segment. So the growth — our expectation is that the growth level of has to be higher than that of, but that does not mean that Century is not growing at a very-high pace. So I hope that answers your question.
Bhavin Rupani
All right. Thank you so much.
Operator
Thank you. A reminder to all the participants that you may please press star and want to ask questions at this time ladies and gentlemen, that was the last question in the queue. As there are no further questions. I would now like to hand the conference over to Mr Agarwal for closing comments. Over to you, sir.
Sanjay Agarwal
Thank you. Thanks to all of you for supporting Century Ply with very positive hopes for the Q4 and the H1 and I believe that things will be much better. The undercurrents will certainly improve in coming times. We close today’s call. Thank you.
Operator
Thank you, members of the management. On behalf of SKP Securities Limited, that concludes this conference. We thank you for joining us, ladies and gentlemen, and you may now disconnect your lines. Thank you.