Ddev Plastiks Industries Ltd (BSE: 543547) Q2 2025 Earnings Call dated Nov. 14, 2024
Corporate Participants:
Ddev Surana — Director and Chief Executive Officer
Arihant Bothra — Chief Financial Officer
Rajesh Kothari — Director
Narrindra Suranna — Chairman and Managing Director
Analysts:
Renuka Sivsankar — Analyst
Pritesh Chheda — Analyst
Kunal Ochiramani — Analyst
Apurva Shah — Analyst
Unidentified Participant
Saket Kapoor — Analyst
Manas Belekar — Analyst
Unidentified Participant
Aman Vishwakarma — Analyst
Anshul Saigal — Analyst
Unidentified Participant
Ajinkya Jadhav — Analyst
Dolly Choudhary — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Q2 FY25 and H1 FY25 Earnings Conference Call of Ddev Plastiks Industries Limited hosted by PhillipCapital PCG Desk. [Operator Instructions]
I now hand the conference over to Ms. Renuka from PhillipCapital India Private Limited. Thank you, and over to you.
Renuka Sivsankar — Analyst
Thank you. Good morning, everyone. On behalf of PhillipCapital Private Client Group, I welcome all of you to the Q2 and H1 FY25 earnings conference call of Ddev Plastiks Industries Limited.
Today from the management, we have Mr. Narrindra Suranna, Managing Director; Mr. Ddev Surana, CEO; Mr. Rajesh Kothari, Whole-Time Director; and Mr. Arihant Bothra, CFO.
I now hand over the conference to Mr. Surana for his opening remarks and then we will open the floor for Q&A. Over to you.
Ddev Surana — Director and Chief Executive Officer
Thank you, Renuka. Good morning, ladies and gentlemen, and welcome to our quarter two half yearly earnings call. Our investor presentation has been uploaded to the exchange and we hope you have already got an opportunity to review it. As we reflect on this joyous celebration of Diwali and welcome the New Year, I’d like to extend my heartfelt greetings to each one of you. I hope you all had a wonderful and joyous Diwali.
We are pleased to announce that Ddev Plastiks has performed positively in the first half of the year in line with the expectations. Our operating margins have sustained for the first half, reflecting our agility and success in navigating a dynamic market environment supported by a resilient domestic economy. At Ddev Plastiks, we are a team of curious and creative problem solvers dedicated to making a difference to innovation by moving up the value chain. Our R&D team is committed to exploring new technologies and processes to develop advanced products that truly impact our customers’ lives.
Additionally, our emphasis on continuous improvement and innovation has established us as one of the largest polymer compounders in India with an established capacity of more than 2,83,400 metric tons per annum. Our diverse portfolio is serving various industries and exporting to more than 50 countries. Analyzing the broad economic landscape, the demand environment across this sector remains strong. Following the general assembly elections, government spending and infrastructure investment have increased in creating positive momentum.
The government is expected to continue increasing its spending in the remaining months of the fiscal year to meet the budget targets, which will significantly boost growth. Additionally, the real estate market remains robust, supported by low inventory levels and rising prices and healthy project launches. First half has recorded the highest number of the new projects launches and sales over a decade. This ongoing activity will continue to drive demand for wires and cables in the coming years, contributing to the accelerated growth in the industry, which has also led to the growth and success of Ddev Plastiks, as we are India’s largest producer of polymer compounds. At Ddev, we are prepared to meet the rising demand trends in India. This commitment has allowed us to maintain our position as a leading player in the polymer compound sector, particularly in the production of cross-linked polyethylene XLPE compounds, which are essential for the power cable industry.
Over time, we have developed an expensive portfolio across five categories. They are XLPE compounds, PVC compounds, Engineering Plastic compounds, anti-fib compounds, and Halogen Free Flame Retardant compounds. We would also like to emphasize the leadership in XLPE and Sioplas compounds in India. Each of these categories play a vital role in various applications ranging from food packaging to automotive components and electronics.
Historically, our revenues have grown at a CAGR of 9% from financial year ’20 to ’24, and we anticipate continuing this growth trajectory at a CAGR of approximately 12% to 15% with better margin and improved volume over the next five years.
Now I would like to invite Mr. Arihant Bothra for his remarks.
Arihant Bothra — Chief Financial Officer
Thank you, Ddev ji. Players in the cables and wire sectors have positioned for potential growth. That could exceed twice the GDP rate, driven by rapidly expanding industries, such as electric vehicles and solar power installations. The launch of the Pradhan Mantri Suryoday Yojana in January 2024, which aims to install rooftop solar panels for 10 million homes, is anticipated to provide an additional boost to wire manufacturers and will also benefit compound manufacturing like us. Ddev Plastiks achieved net debt-free status in the last quarter of financial year 2024, and it is continuing to maintain this position into this current financial year also.
We further reduced our finance cost by 23% over a year-on-year basis to less than INR5 crores this quarter. Despite facing challenges from erratic monsoons, severe flooding and escalating conflict in the Middle East, which have significantly disrupted shipping routes and driven up the freight cost, we have managed to perform well financially. Having said that, on financial front, the quarterly financial highlights for this particular quarter as below. Revenue from operations stood at INR580 crores for this particular quarter. EBITDA stood at INR68 crores, reflecting a 3% growth year-on-year basis with a margin of 12% on EBITDA basis. PAT stood at INR45 crores, growth of 6% [Phonetic] year-on-year basis with a margin of close to 8% for this particular quarter.
Now moving on to half yearly results. Revenue from operations stood at INR1,206 crores odd for this particular first half of the year. EBITDA stood at INR133 crores with 4% growth year-on-year basis with a margin of 11% in this particular first half. PAT stood at INR87 crores odd with 9% growth year-on-year basis with a margin of 7% for the first half basis. As of September 2024, our installed capacity stood at 2,33,400 metric tons with a capacity utilization of 78% approximately.
With this, I thank everyone and I again wish a Happy Diwali and Happy New Year to everyone. From this, we request the chorus to open the floor for question and answers.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] We’ll take our first question from the line of Pritesh Chheda from Lucky Investments. Please go ahead.
Pritesh Chheda
Sir, can you give the volume performance for H1 and quarter two?
Arihant Bothra
In H1, we achieved 91,000 metric tons close to volumes and Q2 is close to 45,000 metric tons.
Pritesh Chheda
And how does it — in volume growth terms, how — is it on a Y-o-Y basis?
Arihant Bothra
Y-on-Y basis, for quarter, it’s close to 3%, whilst on annual — half yearly basis, it’s more than 11%.
Pritesh Chheda
Okay. And in this — in the half yearly, what would be your export growth and domestic growth?
Arihant Bothra
In half yearly, the export degrown by almost 12%, 13%. That is mainly on account of two things. One is the rates — freight rates are higher, so the export potential comparatively in few of the countries is difficult. And second is the margins — this — margins, average relation have come down marginally due to the reduction of polymer prices.
Pritesh Chheda
I didn’t get how much export has declined first half?
Arihant Bothra
Close to 12%, 13%.
Pritesh Chheda
Okay. So basically domestic would have grown really fast…
Arihant Bothra
Yes. Yes.
Pritesh Chheda
And your outlook on the export and your outlook on the capacity that you’re adding…
Arihant Bothra
Pardon me [Phonetic].
Pritesh Chheda
What is the outlook on the export growth and what is the progress…
Operator
I’m sorry, Pritesh, use your handset mode. Your voice is not very clear.
Pritesh Chheda
Yes. Am I audible?
Arihant Bothra
Yes. Yeah. So this outlook for the overall sales growth from volume point of view is in line with what we have projected. 12% CAGR kind of growth we are anticipating, and that second half should also support that projection. Now on the export front, we see that this challenge should continue in the second half also because sea freights are not coming down. They are still very firm. And because of that our viability to export goes down. And that is the story going to be in the second half as well.
Pritesh Chheda
What’s your progress on capacity expansion?
Arihant Bothra
Capacity expansion, we are as — last time we discussed that we already acquired a piece of land. Now on that — construction is yet to start, but we are adding some capacity for the — means for XLPE side. This should come in place in the first half of next year. This year we will be able to utilize the 100% capacity, close to 100% of the capacity installed for XLPE site.
Pritesh Chheda
Okay. So greenfield will come second half?
Arihant Bothra
Yeah, yeah, not second half of this year, not second half of this year, first half of the next year.
Pritesh Chheda
So greenfield will come first half of next year and until that you have a XLPE capacity expansion line, right?
Arihant Bothra
Yeah. See, the current capacity which we have for XLPE, that should be good enough to meet our demand for this financial year.
Pritesh Chheda
But have you got your approvals and your product ramp-up and all in XLPE?
Arihant Bothra
See, for example, HFFR, if you see that this first half, the capacity utilization rate has reached 50%, okay? So we are getting the improved volume from HFFR, which was a new product. On the XLPE side, the only one product where we were looking for approval and new launch is 132 KV, which we already said that it would be happening [Technical Issues] anytime in 2025.
Operator
I’m sorry sir, your voice was sounding muffled. Can you just repeat the last part, please?
Arihant Bothra
Yeah, yeah. So I say that on HFFR, which is a new product where approvals are playing an important role to increase the volume. There, our volumes have grown to the 50% of the capacity, which means we are getting enough approval to support our — this capacity. And on another side, on XLPE side, we were talking of a new product launch of 132 KV, that we updated in the last meeting also and we repeat the same that this project — this product will be launched during the calendar year 2025.
Pritesh Chheda
Can you just give your volume target for FY25, what could be your overall volume…
Arihant Bothra
1,85,000 metric tons to 1,86,000 metric tons.
Pritesh Chheda
Okay. Thank you very much and all the best.
Arihant Bothra
Thank you.
Operator
Thank you. [Operator Instructions] Next question is from the line of Kunal Ochiramani from Kitara Capital. Please go ahead.
Kunal Ochiramani
So I wanted to understand how will the demand flow for next two years, three years for our Company, and how do you see the EBITDA per kg for next two years, three years?
Arihant Bothra
Rajesh ji.
Rajesh Kothari
So the demand scenario is as we have projected in the opening remarks, Arihant has highlighted and Mr. Ddev Surana also highlighted that we are looking for a 12% CAGR. So the market conditions are good enough to support that projection of 12% CAGR growth in the volume terms because the top line revenue could be depending upon where the raw material prices are. So the top line, revenue may move here and there but volume growth definitely we are looking for a CAGR of 12% for next two years, three years and market is supporting that projection. And looking at this, what you call EBITDA, if you look at our presentation this quarter and this half year maintained EBITDA level per ton basis compared to what we have achieved the peak number in 2024, we feel that we’ll be able to maintain this range.
Kunal Ochiramani
Okay sir, thank you so much.
Operator
Thank you. [Operator Instructions] We’ll take our next question from the line of Apurva Shah from PhillipCapital. Please go ahead.
Apurva Shah
Hello. Yes sir. Thanks for the opportunity. Sir, just want to understand on the volume front. So if you look at the domestic cable revenue, then it’s far better than our 3% volume growth for the current quarter. So just curious if you can just bifurcate between domestic and export, and can we just help us to understand for like-to-like for cable business what could be our volume growth. So that would be very easy to understand from our story perspective.
Arihant Bothra
So on a volume front, if you see the numbers of 82,000 metric tons last year versus 91,000 metric tons this year first half, around 67,000 metric tons for this particular year has been contributed by the warrant, specifically the XLPE segment. I am not talking about detailed warranty but I’m just giving you a highlight, which is 20% Y-on-Y growth as compared to first half last year. What has come down, the anti-fib business which is a low margin low volume business…
Rajesh Kothari
Arihant, sorry. See, Mr. Apurva asked the question particularly on the cable side, the breakup of the growth or degrowth in domestic and export. So the number which we are reporting for the XLPE group, there is overall growth compared to last year. But how much growth has come from the local and how much of the growth has been lost on the export, if you can give that data, then it will answer the question of Mr. Shah. Mr. Shah…
Arihant Bothra
Actually, I want to first explain him why he is finding a lower volume growth because the volume has happened in the anti-fib section and it has grown in the XLPE segment. So on an average basis you are finding a lower volume growth of 3%. But on item to item basis, volume growth is — our first half had been 20% as compared to last year. This is the first point I wanted to address.
Apurva Shah
As Rajesh sir said, I was more interested in like what could be the volume lost in export, and in that case, what could be the like-to-like domestic volume growth for the cable and wire industry. That was my simple point what Rajesh sir said. Is that data is readily available then…
Ddev Surana
Not readily available.
Rajesh Kothari
Immediate basis. Maybe we’ll get back to you on this.
Apurva Shah
Okay. And sir, when we are guiding for 12% volume growth, so is it still considering the current difficult situation in the export market, so that whatever difficulty we are seeing in the export side that we can mitigate from the domestic growth, so that’s why still that 12% volume growth is we are confident, right?
Rajesh Kothari
Yes, yes. We are confident of 12% growth overall because as the export we are facing challenges, and we — as we have said in the earlier remarks that we see the same challenge prevailing in the second half as well but we see a very strong demand from the domestic side, so it will offset the losses on the export side.
Apurva Shah
Got it. And sir, just final thing, one clarity on the — like obviously on the realization front it would be direct correlation, but on the EBITDA per kg side. So I think this quarter is one of the better quarter compared to like last quarter. So going forward, maybe if you can just throw some light on the EBITDA per kg considering the kind of product mix we are envisaging. So that INR14.4 or maybe including other income, what we are reporting may be INR15.4. So will that trajectory will be maintained going forward?
Arihant Bothra
See if you look at the last quarter [Technical Issues] that…
Operator
I’m sorry, sir. You’re sounding muffled.
Arihant Bothra
Yeah, see, if you look at the last quarter, our EBITDA went down compared to the previous quarters. And we explained that it was because of higher freight [Technical Issues] went down. Now if you look at this quarter, the export share has went down. So the hit on account of higher sea freight has been mitigated and the local volumes, the margin level has been maintained as projected. So you will see that margins are more or less EBITDA per ton basis more or less are maintained and we foresee that with, say, looking at the headwind and tailwind which will emerge in the second half. But we say that this main number we are confident of achieving in the second half as well.
Apurva Shah
Got it, sir. Thank you so much and all the best, sir.
Arihant Bothra
Thank you, sir.
Operator
Thank you. [Operator Instructions] Next question is from the line of Suhag Sanghavi [Phonetic] from Hikasaru [Phonetic] Consultancy. Please go ahead.
Unidentified Participant
Madam, my first question is how — when Bhilad plant will start. And second question is what margin of net profit we expect in coming new three years.
Ddev Surana
Arihant?
Arihant Bothra
So on margin front, we have already given our guidance that we are expecting to maintain this current levels of margin levels of 10% to 12% of EBITDA. We are not specifically commenting on the net profit but we are specifically giving a guidance on the EBITDA front. And as far as the Bhilad plant is concerned, as Mr. Kothari highlighted, this is expected only in the next financial year first half.
Unidentified Participant
Okay, thank you.
Arihant Bothra
Okay, thank you.
Operator
Thank you. We’ll take our next question from the line of Saket Kapoor from Kapoor & Company. Please go ahead. Mr. Saket Kapoor.
Saket Kapoor
Yeah, [Foreign Speech], sir, and thank you for the opportunity. Sir, firstly, on the capex front, could you please elaborate what we have outlined for the current two years, for this year, what is the capex that we are going through and for the next financial year and the capacity addition therefore?
Arihant Bothra
This year we have targeted to acquire one land in Bhilad, which is in near Vapi and then we will go ahead for — once the acquisition, entire process is complete, then we’ll go ahead for the construction and then there are few machines to be ordered for that. For the next financial year, we have planned to add HFFR and XLPE capacity in that plant only for some additional quantities. As far as the outlay is concerned, current year, we have already committed close to INR50 crores odd and we are in process of — rather the target is to add another INR50 crores to INR60 crores odd of commitment. It may not be outlet in the current financial year but the commitment will be there. For the next couple of years, another INR125 crores to INR150 crores odd has been committed.
Saket Kapoor
Okay, and this will all go through the internal accruals only?
Arihant Bothra
Yes. Yes.
Saket Kapoor
Sir, as of the first half, our CWIP, the capital work in progress closing balance is INR7 crore. So bulk of the expenditure will happen in H2 only?
Arihant Bothra
Yes, because that is all our commitment basis, that major — these are sort of advances you are finding over there, this will convert into actual payments once the deliveries happen.
Saket Kapoor
Sir when we look at the EBITDA per ton numbers there, this has improved to [Foreign Speech]. So taking into account the benign raw material prices and our product mix [Foreign Speech] for H2 in terms of EBITDA per ton?
Arihant Bothra
Mr. Kothari has already given his outlook on this that we have seen a downside in the first quarter only because of the higher freight rates. Now since the export is comparatively lesser as compared to the domestic, rather I can say this way, we have diverted the material from export to domestic to have the right EBITDA mix. So we are able to achieve INR15,000 plus of EBITDA per ton in this particular quarter. So we expect to maintain this with the current ongoing prices, and with the reduction in prices, you can only see that the average realization [Technical Issues] come down, but that has also helped the reduction of overall working capital utilization.
Saket Kapoor
No, sir, last year, our average was INR16,900 per ton. First quarter was INR13,900 per ton. Second quarter is INR15,300 per ton, just approx number. So for H2, taking into account, our thrust mainly on the domestic segment and mitigating the sea freights part of — onto it, what should be the trajectory for the average for H2 and for the year as a whole?
Rajesh Kothari
See, I will comment, you can expect closer to INR15,000 per ton basis.
Saket Kapoor
Okay. H2 average will be INR15,000 per ton.
Rajesh Kothari
Yeah. Yeah.
Saket Kapoor
Okay. And for the volume sir, the tonnage will be…
Arihant Bothra
We are targeting 1,86,000 tons to 1,87,000 tons.
Rajesh Kothari
So 91,000 tons, we’ve already done in the first half. So second half if you extrapolate, 1,86,000 tons means 95,000 tons additional volume for the second half.
Saket Kapoor
Correct, sir. And sir, when we look at your slide for the focus area segment wherein you have outlined entering into looking for the 220 KV compounding part and then the U.S. market, if you could just elaborate on the same where are we in terms of those fructifying in the near future?
Rajesh Kothari
See, on the higher voltage application launches, 132 KV and 220 KV, we have discussed it in earlier discussions also. These are high end products and it takes — the launch cycle takes too long a time. So in the earlier first question — answer to the first question, I said that 132 KV launch is lined up for 2025 calendar year and then we will discuss about 220 KV launch and all. Now coming to U.S. market, yes, we are putting our effort. We are already doing the export by proxy to U.S., but that export effort is suffering at the moment due to very high sea freight. That is why it will take a bit of time till the freight rates come to a normal situation. And now we have to watch what kind of duty structure will come up. If they put the protection duties, then our plan will have to be recalibrated according to that.
Saket Kapoor
Correct, sir. And sir, one small observation and pardon me if I’m incorrect there. Sir, we have — we always find our results to be at the penultimate day or at the very stag end of the earning season. So any particular reason? Sir, we do not have any foreign subsidiaries wherein the data needs to be accumulated at the fag end. So why do our results come only on the penultimate day, 13th or 14th of the ensuing quarter? Sir, it is — it’s almost half the quarter has passed for the current quarter and the gap is — so just wanted to understand the rationale.
Arihant Bothra
Actually this quarter specifically there has been a lot of festive holidays, so our auditors were getting less time to complete their job. That is the reason we have to come down to the last few dates. Otherwise if you see, we try to do at least 10 days or 15 days prior to the dates, generally within 1 month or 35 days, 37 days.
Saket Kapoor
Previous quarter was also on 13th August, sir, if I — correct me there also. Last time also for the June quarter, we did it on the penultimate day. So that was my observation. So kindly try to put forward the number for the investing community, also it will be good to track, we are in an interesting space and that rejuvenates also keep the interest also and good corporate governance also, sir. These are factors that get you notches up in the investing circle. So that was my observation. Kindly look to get the right auditors, right team of people who can accommodate you because this festive season is not only for Ddev it is for the entire community and people are coming up with numbers earlier also. That was my humble suggestion.
And I hope the Board will take note of and deliberate on the merit of the same. As we are doing the con call, we are coming up with presentation, we are speaking to investors. So in that line we should also come up with our numbers much, much earlier than what we are coming up, what have been the practice. Thank you, sir. I’ll join the queue for follow-up.
Operator
Thank you. We’ll take our next question from the line of Manas from Xylem Investment. Please go ahead.
Manas Belekar
Thanks for the opportunity. Sir, my question is on the America direct export. So any timeline on this, when we can expect direct export to America?
Rajesh Kothari
It is work in progress kind of a thing. Our efforts are on. It is very difficult to put a date to this but we are working on the direction.
Manas Belekar
Yes. Because our export volumes have also finally degrown [Phonetic] due to this shipping problem. So that’s why. Yes. And second question is, right, so you mentioned the volume of 1,86,000 tons for this year. So if we calculate the revenue per ton to this number, our top line will be INR2,400 crores this year. So this will be flat as compared to the previous year.
Rajesh Kothari
Yeah, I think — this, Arihant can…
Operator
I mean you were sounding muffled, sir. Can you just repeat, please?
Rajesh Kothari
Yeah, yeah. So as Arihant has already cleared it multiple times during this call that due to drop in the raw material prices, we have to pass on the raw material drop to the customer, immediate basis. So the realization per ton has gone down. And that is why despite the volume growth, you will see the revenue not grown [Technical Issues]. This has already been answered by Arihant.
Operator
We’re losing you again.
Rajesh Kothari
Yeah, Arihant, can you please…
Manas Belekar
So any guidance on revenue per ton, when will this improve within the H2 or you expect this continue to H1 FY26?
Arihant Bothra
We expect that what has been the average in the quarter two will be the bottom. We don’t see a major — further reduction from here.
Manas Belekar
Okay. So H2 will be better, right?
Arihant Bothra
Yes.
Manas Belekar
Okay, thank you, sir. That’s all.
Operator
Thank you. We’ll take our next question from the line of Suhag Sanghavi from Hikasaru Consultancy. Please go ahead.
Unidentified Participant
Thanks for giving me this opportunity again. Thank you. I just want to know the last — on September 2023, inventory level was negative 338 [Phonetic]. And the current September 2024, the inventory level is 1,185 [Phonetic]. So why is that this inventory level is negative and that is — is that giving rise in profit?
Arihant Bothra
Sir, it’s a change in the opening and closing stock of finished goods which is highlighted from this. It is not negative. It’s the impact of the change in inventory positions. And this is technically if you ask me doesn’t impact profitability at all.
Unidentified Participant
Okay. But do we consider that negative inventory means you already have orders in hand for that product — for that inventory?
Arihant Bothra
Yes, yes. We do have orders in hand for this particular — it’s the inventory of only close to INR35 crores, INR36 crores odd, and that is hardly a sale of less than three days, four days.
Unidentified Participant
Okay. Okay, sir, thank you very much.
Operator
Thank you. We’ll take our next question from the line of Aman Vishwakarma from PhillipCapital PCG. Please go ahead.
Aman Vishwakarma
Thank you for the opportunity. So I just had — so a couple of questions. So to start with what is our demand outlook in the HFFR segment and how big is the domestic market size currently, if you could just throw some light on that?
Ddev Surana
Rajesh ji.
Rajesh Kothari
Yeah. So HFFR demand, if you look at the — From the capacity utilization number from the presentation, we are already at a capacity utilization level of 50%. So demand is improving and [Technical Issues]…
Operator
I’m sorry, sir. You’re sounding muffled.
Rajesh Kothari
Hello. Now — can you hear me now?
Operator
Yes, yes, sir, please go ahead.
Rajesh Kothari
Yeah, yeah. So as this product requires approvals and approval cycle takes longer time, so by now we are having enough approval to use our 50% capacity and we see that demand is very strong. And in next, say, two quarters, by end of this year or maybe first quarter of next financial year, our full capacity utilization will come from HFFR side.
Now coming to the domestic demand side, exact number is difficult to put in because we have not worked the numbers again. Whatever the projection or whatever the numbers which have been presented earlier have not been reworked. But the bottom line is that as the solar installation grows, the HFFR demand is bound to grow. And that — yeah, that is where our outlook is very positive for this product segment.
Aman Vishwakarma
Okay. Thanks. And the next question would be on our new product development. So I believe there was a mention of 132 kilovolt wires, right. So when are we expecting to launch that product?
Rajesh Kothari
See, the difficulty for that product launch is that you need to have some customers to be tying up with you to make the cable. And the demand is so strong that we have not been able to get a time allocation with our customers. We have already tied up the two who are committed that they will make the cable and do the testing. But unfortunately demand situation is so strong that they have not been able to save their machine time for this trial. And that is why it is taking time, and looking at the second half being stronger period for the cable guys, we see that it will be a challenge to get those cable made and tested. That is why in my earlier comment I said that this is due for launch in calendar year 2025.
Aman Vishwakarma
Okay. And so just if you could quickly touch upon the 220 kilovolt also. I think, I believe the approvals are pending, right?
Rajesh Kothari
No, 220 KV, we will not go until and unless we gain commercial acceptance for 132 KV. It is a process going one ladder up at a time.
Aman Vishwakarma
Okay, got it. I’ll join back in the queue. Thank you.
Operator
Thank you. We’ll take our next question from the line of Anshul Saigal from Saigal Capital Advisors LLP. Please go ahead.
Anshul Saigal
Thank you. I want to know what proportion of revenues were exports in the current quarter?
Arihant Bothra
Exports?
Anshul Saigal
Yes. What proportion of total revenues were exports? So if I — if volumes that we’ve done are 91,000 tons in the first half, then what proportion was exports, how much was domestic of that 91,000 tons?
Arihant Bothra
Oh, you want in quantitative terms. Just a second. In value terms, it was 22% odd.
Anshul Saigal
Exports?
Arihant Bothra
Yeah.
Anshul Saigal
Okay.
Arihant Bothra
And in volume terms, is also close to 22% only.
Anshul Saigal
Okay. And this number in FY24 was higher than this?
Arihant Bothra
Yeah, comparatively high. Even the first quarter have been a bit higher. But in the second quarter, if you are having a direct correlation, then there was war escalations as well as higher freights in the international — this Red Sea crisis and everything. In the international market, the freight rates were very high. And in September months, specifically the war escalations were multiple times. So that has led to reduction of export by close to 1,000 plus tons. That is the main reason why you can see the downward trend is there.
Anshul Saigal
Okay. So our exports in the range of, say, in a normal year, are they in the range of 25% to 30% of revenues?
Arihant Bothra
Yes.
Anshul Saigal
Okay. Now if our expectation is to do 1,85,000 ton to 1,86,000 ton volume in the current year, how much of this are we estimating domestic volumes to be?
Arihant Bothra
With the current proportion, you can say that this 20% to 22% will be maintained and the balance diverted to the domestic area. So proportionately you can ask me on a broader sense, 72% to 75% will be the domestic and 22% to 25% will be the — rather 25% to 28% will be the export.
Anshul Saigal
So which means that in the second half exports as a proportion of revenues will go up?
Arihant Bothra
Partially for some percentages, a couple of percent you can say.
Anshul Saigal
Okay. Now in which case, if we are building in a 12% growth for volumes in the next year, what kind of growth in domestic are we building in? Because — and why I’m asking this question is that if exports were to revive next year, that is sea freight was to come down, then given how the domestic market is growing, actually this 12% volume growth number looks quite conservative because you will also have the added lag of exports.
Rajesh Kothari
Let me comment. See, the headwind and tailwind will emerge, okay? We really cannot say that the domestic will continue to do as well as it is doing today, okay? And we cannot say that export will have the same challenge which is having today. Because in export area, on one way the challenge may drop in form of cheap rate again turning to be genuinely in the right range. But we see a challenge in form of the duties coming up on the export to USA. If that happens, then the cable export and cable compound export both will have a viability issue. So these are the things which are in the future, we are really taking, considering that there will be some headwinds, new headwinds and there is some new tailwinds that will balance it out and that is why we are projecting only 12%.
Anshul Saigal
Got it.
Arihant Bothra
Just to add, your volume growth question was there, a minor, you can say, volume driven answer. We have grown at the rate of 18% for the last two years in the specific XLPE segment. Whilst overall you see a volume growth of 16% and 5% for ’24, ’23, respectively. So what — exactly what we want to portray or convey a message is that we are diverting capacities towards XLPE and XLPE is growing at much faster rate, which is commensurate or you can say in align with the domestic or international market, specifically the wire and cable we are targeting. Yes, there are headwinds as Mr. Kothari has specifically highlighted. But on volume front, when you see the overall numbers, you are getting diverted, the right number visibility will be comparing XLPE to XLPE which is in the wire and cable segment.
Anshul Saigal
Okay, great. Now Mr. Surana mentioned earlier that 15,000 tons — INR15,000 per ton is the average EBITDA that he expects in the second half. Is this the normalized EBITDA over the long-term? Because first quarter was slightly weak, second quarter was strong. In the last year, we were even stronger than that. We were at about INR16,000 per ton plus. What will be the normalized EBITDA per ton in the long-term? Also this question becomes relevant given that XLPE as a proportion of sales is going up and I assume XLPE is a higher margin business than the remaining Sioplas, etc. Yes.
Arihant Bothra
So we have already given our guidance on this. Just before a couple of questions, Kothari ji also portrayed this that our — we are targeting EBITDA per kg of INR14 to INR15 and INR15 being very close right now. We have been able to achieve INR15 plus in this particular quarter. Last quarter was close to INR14. On an average it is close to INR14.5. But we are — for this financial year, we are targeting to achieve at least average of INR15. And on a broader sense INR14 to INR15 is something which is achievable.
Anshul Saigal
Even if XLPE and HFFR grow as a proportion of sales, still this kind of a number is what we should anticipate, not a higher number.
Arihant Bothra
We are…
Rajesh Kothari
Same level.
Anshul Saigal
Same level. All right. Thank you very much.
Operator
Thank you. We’ll take our next question from the line of Niru Dimani [Phonetic] from SNS Holdings. Please go ahead.
Unidentified Participant
Hi. Hi, team, thank you for the opportunity. I just wanted to know about our capex plans and what are the timelines and the target for the same.
Arihant Bothra
Though we discussed just now, we are going ahead with our original capex plan wherein we have already committed close to INR50 crores odd in this financial year. And with a few more capacity addition targets, it will be another INR40 crores, INR50 crores in this particular financial year of commitment. Next two years will be another close to INR100 crores plus of commitment. This is what we are targeting. On a capacity front, we are targeting to add capacity of 25,000 tons of XLPE from ’25 financial year to ’27 and 15,000 tons of HFFR in this three financial years.
Unidentified Participant
So that means we’re on track, right?
Arihant Bothra
Sorry. We?
Unidentified Participant
We are very much on the track.
Arihant Bothra
Yes. Yeah.
Unidentified Participant
Sure, sir. Thank you. Thank you so much.
Arihant Bothra
Thank you.
Operator
Thank you. We’ll take our next question from the line of Ajinkya Jadhav from KRIIS PMS. Please go ahead.
Ajinkya Jadhav
Yeah, thanks for the opportunity. My question is regarding U.S. exports. In the last con call, we highlighted that we are expected to get UL approval by the end of FY25. Can you provide some status on this?
Rajesh Kothari
Yes, we are having one approval in hand, another is in the process. So we targeted to have three approvals. So one is already there and another, we hope that it takes around six months time. We have submitted the sample in the month of November itself. So we expect that another approval should be available by end of the year.
Ajinkya Jadhav
Okay. And this approval is for, let’s say, it’s different for HFFR, different for XLPE or like how…
Rajesh Kothari
Yeah. There are specification numbers given by the Underwriters Laboratory there. And according to that you have to take the approval. So it is different for different products.
Ajinkya Jadhav
Got it, got it. Regarding HFFR, as far as I understand, government has not formulated any policy yet. So are we taking up to the — any ministry to the government to you can say push them to formulate the policy?
Rajesh Kothari
Arihant, would you answer this?
Ajinkya Jadhav
Yeah, yeah. Regarding HFFR, yeah, I was saying that like has the government taking any efforts to formulate a policy?
Rajesh Kothari
No, no, we are not lobbying for any increased uses of HFFR because there are so many people already working on it. Okay. Yeah. Yeah.
Ajinkya Jadhav
Okay. And regarding the polymer prices, how is the trend as of now? Like you said, Y-on-Y, the prices are subdued. So going ahead, what do you feel about the polymer prices?
Rajesh Kothari
Polymer prices are close to their bottom. We do not see any significant drop until and unless you see a very severe drop in the oil prices, oil and gas price basically.
Ajinkya Jadhav
Okay. And the last question regarding — you said the export challenge will persist in second half as well. So like will it revive in next year, financial year like FY26 or…
Rajesh Kothari
Yeah, it should, it should, because the sea freight had been abnormally high in last one year and that has impacted the global trade. So we see that this situation should ease out by middle of next year, middle of next calendar year means by the June quarter. Yeah.
Ajinkya Jadhav
Got it. Got it. Yeah. Thank you. Thank you, sir.
Operator
Thank you. We’ll take our next question from the line of Suhag Sanghavi from Hikasaru Consultancy. Please go ahead.
Unidentified Participant
Our Company’s paid up share capital is about INR10 crore and authorized share capital is about INR15 crore. As a shareholder, can we expect one bonus share for every two years — two shares within two years to three years? First question. Second question is as Mr. Surana said on his interview on television that company is expecting INR5,000 crore turnover in — within financial year 2030 and profit margin expecting 10% to 12%. Then within five years, how much Company’s growth in — as a shareholder, how much can we expect price on market?
Rajesh Kothari
Arihant, please.
Operator
I’m sorry, the line for Mr. Arihant is disconnected. I request everyone to stay connected please while I rejoin them. [Technical Issues] Ladies and gentlemen, we have Mr. Narrindra and Mr. Arihant back on the call. Sir, please go ahead.
Narrindra Suranna
Yeah. Mr. Sanghavi, you may have to ask the question again. Probably Arihant might have not heard.
Operator
Mr. Suhag Sanghavi? Can you repeat the question? Yeah.
Unidentified Participant
Yeah, yeah, madam. My — yeah, madam, my first question is as we know that company’s paid up share capital is about INR10 crores and authorized share capital is INR15 crores. As a shareholder, we — can we expect one bonus share for every two shares in future? And second question is as Mr. Surana told on television that company is expecting INR5,000 crore turnover in financial year 2030 and profit margin expecting about 10% to 12%. At that time, profit — I think that profit will go about INR600 crore. Can — how much — as a shareholder how much market price can we expect in financial year 2030?
Narrindra Suranna
Good afternoon. This is NK Surana. Rather good morning. See what market will decide about the price, we have no comment on that, okay? I can only say that whatever we committed that we will achieve a turnover of INR2,000 crore — INR5,000 crore by 2030. We will definitely achieve that. That is for pretty sure. And so far as the bonus share is concerned, you’ve made a suggestion. We will think about it. We’ll deliberate among our Board member at an appropriate time. There is no commitment. There is no thought process on this at this moment. As and when there will be a thought process, we let you know. Thank you very much.
Unidentified Participant
Okay.
Operator
Thank you. We’ll take our next question from the line of Saket Kapoor from Kapoor & Company. Please go ahead.
Saket Kapoor
Yeah, thank you, sir. Sir, firstly, if you could give us some color on the RM prices, you said that they are at the bottoming. So what is our RM basket constituent of?
Ddev Surana
Yeah, sorry.
Arihant Bothra
It’s mainly the polymers. Polymers and PVC resin is the main RM basket and polymers is broadly the polythene-based polymers and polypropylene-based polymers.
Saket Kapoor
Okay. And what are the price trends, sir? Currently crude prices are trending lower. So are the derivatives of crude — these polymer prices are stable or what’s the trend likely?
Narrindra Suranna
Kothari ji?
Rajesh Kothari
Yeah. See, it depends on not only the crude but the gas prices also because crude and gas both are used as a raw material for this application. And another factor is demand supply. So we see that the prices remaining in this range not coming up too much and not going down too much because the raw material price, crude and gas prices are such that they are not leaving any scope for the polymer supplier to drop the prices further. And demand supply schedule is such that they are not going to allow the polymer suppliers to raise the prices drastically. So it is on balance, is going to remain in the same range in coming couple of quarters.
Saket Kapoor
Okay. Sir, we heard that Reliance is also coming up with a big PVC complex in the year 2026-2027. So how should we read this information being connected to a business dynamic for ours and the cable sector, the PVC segment?
Rajesh Kothari
Surana probably can answer in a better way on this?
Ddev Surana
Can you please repeat the question once again?
Saket Kapoor
Yes, sir. Reliance is coming up with a big PVC complex which they have announced in their AGM in the year 2026-2027. How will this capacity will change the dynamic for PV compound consuming companies like us, sir?
Rajesh Kothari
No, no. See, they have — in PVC — in any case, we were short in supply and production in the country actually. So that’s — this is the gap only, the shortest gap. And our company is making PVC compound also but there is a very small part actually if you see. Basically they are dependent on LGP, LLDP and LDP, okay? And in any case, our country is importing, I think 1.5 million tons of PVC resin every year, and by every passing year that demand and supply gap is increasing. So they will only build that demand/supply gap.
Saket Kapoor
So currently we’re sourcing it — what portion are we sourcing domestically and how much are we importing our raw material requirement?
Rajesh Kothari
No, no, we — see LLDP, LGP, and LDP, our country is self-sufficient, but even then it depend on that pricing strategy and all. We are importing also. But our PVC is concerned, we have a PV pipe from Reliance and we import also, okay?
Saket Kapoor
Okay, sir. So the EBITDA margin improvement which we have seen Q-on-Q from 10% to 12% is mainly on account of this benign raw material prices and lower export mix. This is what the — this has what contributed to the increase in EBITDA?
Arihant Bothra
Yeah, yeah, increase in EBITDA in percentage terms, see percentage has changed because the revenue per ton has dropped. So if you look at the percentage of the revenue, then EBITDA percentage looks to be improved. But if you look at per ton basis, yes, there is a slight improvement in quarter two compared to quarter one. And quarter one was lower because we had a hit on account of higher export, and when the sea freight was high, in second quarter, the exports are a little lower compared to first quarter, that is why the hit on account of higher sea freight is less. That is why the EBITDA improved in the second quarter compared to first quarter. But on percentage terms, the improvement is mainly attributed to lower realization per ton basis.
Saket Kapoor
Okay. And H2 will have higher component of export, means on a year-on-year basis, if we take our export number for FY24, what was the export mix and what is the current export mix for H1?
Arihant Bothra
Last year — this year it’s close to 23% in this particular period. Whilst when you talk about the last year as far as the percentage of export is concerned, it was around 25% odd.
Saket Kapoor
Okay. So it’s in the similar level only. For H2 also, we are eyeing this percentage to be maintained?
Rajesh Kothari
Yes. Yes. See, it is — see, it is a range of — I would say it is a range of 22% to 26%. Now it will be remaining in that range. At times it could be 21% also, but this range only. Couple of percentage here and there. It is very difficult to be very precise.
Saket Kapoor
Yes, sir. Yes. And sir, one suggestion, when we are giving in our investor presentation, the production volume, we are providing annual number and the H1 number. So if we can provide the quarterly numbers, then the comparable there, that would suffice a lot of our understanding, sir. Slide #14, wherein we have given production volumes and product-wise segment split, wherein a quarterly breakup and a comparative number would definitely add value to itself. So kindly look into the merit of the same.
Arihant Bothra
Okay, noted.
Saket Kapoor
Thank you, sir, for elaborating and very candid answers, and we hope that the suggestions would be looked into, sir. Thank you.
Narrindra Suranna
Just to add to what Arihant ji has said, if you can refer to Slide #21, there we have already given our quarterly — this — quantities just for your comparatives.
Saket Kapoor
Okay, sir. I will refer that, sir. Thank you, sir.
Operator
Thank you.
Narrindra Suranna
Thank you.
Operator
We’ll take our next question from the line of Dolly Choudhary from Niveshaay. Please go ahead.
Dolly Choudhary
Hello? Am I audible?
Operator
Yes, please go ahead.
Narrindra Suranna
Yes.
Dolly Choudhary
Yes. Thank you for the opportunity, sir. I just had one follow-up question regarding the raw material price trend. So I believe our highest raw material contribution is from LDP. So I wanted to understand the price trend from last year to this year and as well for the last quarter, what would be the percentage fall in the raw material prices?
Rajesh Kothari
Arihant, you have — because we — I can talk about the general trend, but precise number how much drop is there, that is something again we have to check up and then report back. The general trend had been downward for the last four quarters, five quarters, but exactly how much drop has happened means the precise number is not there. We will work it out and we’ll let you know.
Dolly Choudhary
Okay, sir. Thank you. That will be all. All the best.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to management for closing comments. Over to you.
Arihant Bothra
So I take up this opportunity. Thank you so much for your time. We had fruitful discussion and interaction. We look forward to the — to your continued support and guidance. In case if there are any unanswered questions, please feel free to reach out to our Investor Relations team. Thank you. Have a good day.
Operator
[Operator Closing Remarks]
Arihant Bothra
Thank you.