Ddev Plastiks Industries Ltd (BSE: 543547) Q4 2025 Earnings Call dated May. 16, 2025
Corporate Participants:
Unidentified Speaker
Ddev Surana — Chief Executive Officer
Arihant Bothra — Chief Financial Officer
Rajesh Kothari — Ddev Plastiks Industries Ltd
Analysts:
Unidentified Participant
Renuka Sivsankar — Analyst
Pritesh Chheda — Analyst
Bhargav — Analyst
Amar Maurya — Analyst
Parth Kotak — Analyst
Vikash Daga — Analyst
Gunjan Kabra — Analyst
Amlan Chakraborty — Analyst
Saket Kapoor — Analyst
Arnav Sakhuja — Analyst
Laveena — Analyst
Harpreet Singh — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q4N FY25 earnings conference Call of Duty Day Plastic Industries Limited hosted by Philip Capital PCGdesk 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 presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on attached owned phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Renuka for from Philip Capital India Private Limited. Thank you. And over to you Ma’ am.
Renuka Sivsankar — Analyst
Thank you Yusuf. Good afternoon everyone. On behalf of Philip Capital Private Client Group I welcome all of you to the Q4 and FY25 earnings conference call of Dave Plastic Industries Limited today. From the management we have Mr. Narendra Surana, Managing Director, Mr. Dev Surana, Chief Executive Officer, Mr. Rajesh Kothari, Director and Mr. Arihan Bhotra, Chief Financial Officer. I now hand over the conference to Mr. Surana for his opening remarks and then we will open the floor for the Q and A over to you.
Ddev Surana — Chief Executive Officer
Thank you. Good afternoon ladies and gentlemen. Welcome to The Dave Plastics Quarter 4 FY25 earnings call. Yesterday our Board of Directors approved the financial results for the fourth quarter and full year of 2425. We are pleased to present our performance, key developments and future outlook. During this call, we will provide an overview of our financial and operational performances, discuss our strategic roadmap and outline our growth ambitions. We will also highlight the key initiatives undertaken during the year and share our vision for a sustainable long term expansion in FY26 and beyond. Financial year 25 has been very exciting for us, marked by significant milestones, growth aligned with our management’s guidance and vision and an unwavering commitment to excellence.
The global economy experienced steady yet uneven growth across regions in FY25 while global manufacturing slowed, particularly in Europe and in parts of Asia due to supply chain disruptions and weak external demand. The service sector remained resilient, driving economic growth in several regions. Inflationary pressure eased across most markets providing some relief to businesses and consumers. Despite global uncertainties, India maintained steady economic growth with real GDP expanding by 6.4% in FY25, remaining close to its decadal average for financial year 26. Real GDP growth is projected in the range between 6.3 to 6.8%. Driven by strong domestic consumption and investment, the industrial sector is esteemed to have growth by approximately 6.2% in FY25.
The current economic sluggishness is expected to be temporary with a notable recovery anticipated in the coming quarters. Government led public capital expenditure is projected to accelerate supporting infrastructure growth and industrial demand. Additionally, the real estate sector continues to benefit from the strong demand and new project launches ensuring sustained expansion. Improving private sector demand is also expected to provide a significant boost to the economic momentum. These positive macroeconomic trends will give strong domestic demand for our product portfolio, positioning us for robust growth just as we have consistently delivered in the past. The cables and wires segment remains central to India’s industrial expansion.
Continued investments in power, infrastructure, real estate and private capital expenditures are expected to sustain demand momentum. Recent trends also highlight the sector’s resilience and long term growth potential, making it a crucial pillar of India’s industrial and infrastructure development. Domestic demand for cable and bioproducts remain strong fueled by rapid electrification, infrastructure expansion and sectoral growth in power and transition and distribution, real estate and transportation. The domestic cable and wire market is projected to grow at a CAGR of 11 to 13% from FY24 to FY27. India’s emergence as a net exporter of cable and wire products since FY20 underscores its ability to meet the global demand.
On the global front, key demand drivers include the global push for renewable energy and accelerated adoption of electric vehicles and power grid modernizations. Despite concerns over potential U.S. import duties, the sector remains well insulated due to America’s reliance on cable imports. India has strengthened its foothold in the US Market in the cable and wire exports growing at a CAGR of 44% from FY17 till FY24. While export revenues face temporary headwinds in the first half of FY25 due to logistical disruptions and subdued demand, a recovery is already underway. We anticipate mid teen growth in FY26 driven by higher export volumes, better realizations and improved margins.
The wire and cable segment, which constitutes nearly 40% of India’s electrical industry, continues to offer strong tailwinds with the accelerating pace of electrification across homes, factories, EVs, data center and solar infrastructure and with major players like Adani and Ultratech entering the space. Daechastics is primed to be a reliable and established supplier of polyvalue compounds to this high growth sector backed by strong momentum in both domestic and international markets. We view this industry as a high growth opportunity. To capitalize on it, we are executing strategic initiatives including capacity expansion, the introduction of high margin value added products, new product launches and the exploration of new export markets as well.
These initiatives are progressing as planned and aligned with the long term vision for driving sustainable growth and profitability. Delving Further into our FY25 performance, our volumes stood at 1,89,374 metric tons per annum registering a growth of 14% year on year basis. As of FY25 our installed capacity stood at 2,33,400 metric tonnes per annum, reinforcing our position as India’s largest polymer compound manufacturer. We achieved a record capacity utilization of 81% during this fiscal year, one of the highest levels since our demerger with Kalpana Industries. We have five modern state of the art manufacturing plants located in West Bengal, Damman, Andu Dadra Nagar Haveli.
These facilities are strategically positioned on both the east and west coast of India, thereby minimizing our freight cost. We have also developed a world class research and development facility equipped with the cutting edge machinery led by experts to deliver on innovative solutions. The facility also engages in scientific and technological collaborations with esteemed institutes like IIT and University Institute of Chemical Technology in Mumbai to name a few others. For the year ended FY25 we delivered a strong performance with consolidated revenue reaching 2603crores. We closed the year with an EBITDA of 287crores while our PAT stood at 185crores.
I would like to highlight that our PAT has grown at an impressive CAGR of 46% rising from 27 crores in FY20 to 185 crores in FY25, reflecting the strength of our business model and consistent execution over the years. I’m also pleased to highlight that our company has become a net debt Free Company in Quarter 4 of FY24 and has maintained its position to date. A significant milestone in our journey was also our listing on the National Stock Exchange which has further enhanced our liquidity. Also. Additionally, during this fiscal year we received NTPC approval for 3.3 kb insulation, reinforcing our commitment to quality and industry standards in FY26.
We will continue to build our momentum by expanding our xlpe, PVC and HFFR compounding capacities to cater to the growing demand for high voltage cables. As part of a broader strategy to strengthen our product offerings and manufacturing capabilities, we plan to introduce an XLP compound suitable for cables up to 132kV with future plans also extend this to 220kV as well. These initiatives will help us stay aligned with the market needs and support our objectives of gradually increasing market share in India and overseas. Additionally, we remain committed to reinforcing our position in the domestic market while steadily expanding our geographical presence over the next two years across the globe.
Furthermore, in line with our earlier guidance, we are targeting a volume growth of 10 to 15% and a revenue growth of 12 to 13%, aiming to reach a revenue of approximately 4,500 to 5,000 crores by FY30. We expect to maintain a healthy EBITDA margin of around 10 to 12%. Our strategic focus will remain on enhancing our operational efficiencies, expanding our product portfolio and delivering sustainable value to all our stakeholders. I Now invite our CFO Mr. Arim Bothra to take things forward.
Arihant Bothra — Chief Financial Officer
Good afternoon everyone. Our continued focus on innovation, capacity expansion and sustainability has enabled us to successfully navigate financial year 25 and close the year on a strong Note. In the fourth quarter revenue from operations stood at 737 odd crores reflecting a robust 23% year on year growth. EBITDA came in at 79 odd crores with a margin of 11% while profit after tax was approximately 52 odd crore delivering a 7% margin for the quarter. In terms of volumes, we achieved highest ever quarterly sales of 50,752 metric tonne in this particular quarter compared to the previous quarter.
Quarter four last year stood out due to the significant annual discounts offered by polymer producers. This was driven by the entry of a new player with a large polyethylene capacity which intensified competing and led existing producers to adjust their pricing strategies. Now moving on to full year finance Fiscal Results Revenue from operations for financial year 25 stood at approximately 2,603 crores which is again highest ever achieved by year was 287 odd crores reflecting a stable margin of 11% while Pact stood at 185 odd crores with a margin of 7%. In terms of volume, we achieved highest ever sales of 1.89374 metric tons in this particular financial year, registering year on year growth of 14% despite the year during the year we incurred a capex of 55 odd crores and we plan to invest another 110 odd crores in this current fiscal year.
To support our continued growth and expansion initiatives, we are pleased to highlight that CRISIL has upgraded our credit ratings to A stable from A for the long term as well as a 1 from a 1 for the short term a 1 is the highest short term rating reflecting our strong financial and operational performance. We are committed to better and stronger performance in financial year 26 and going forward. We now open the floor for question and answers.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to withdraw yourself from the question queue you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Pritesh Cheddar from Lucky Investments. Please go ahead.
Pritesh Chheda
Thank you. The question is what is so unique in quarter four last year which is not in quarter four this year and whereby let’s say your nine month EBITDA growth rate was 10% and your full year number has come down to 5% EBITDA. So you may want to explain us the difference in these two quarters.
Ddev Surana
Aryan.
Arihant Bothra
Yes sir. So if you see the Last year Quarter 4 Specifically we had as I explained the annual discounts comparatively higher as compared to the current year. It was majorly because of a new player entrant because of which the entire polymer petrochemical producers have adjusted their pricing strategies. Secondly, when you compare this with the previous few quarters the raw material prices were at bottom. When we compare the quarter two and quarter three of this fiscal year while in this particular quarter prices have gone up by almost 6 to 7%. So the bottom there is a, you can say impact of the base effect which is reflecting in terms of percentage while on EBITDA per ton.
If you see quarter on quarter basis. So the third quarter stood at roughly 15 rupees 15.3 rupees while the last quarter was 15.5. And the current quarter we have achieved 15.6 rupees of EBITDA per ton even. Even after we achieving the highest quarterly volumes.
Pritesh Chheda
Okay, but if you Recall your Quarter 4 transcript last year you for the explanation of the quarter four margin last year was these discounts and you had said that it happens annually every year. So now the nomenclature is that it was one time because the producer was a newer entrant in the market. So how we want to assess these two information.
Ddev Surana
Would you like to elaborate?
Rajesh Kothari
See this is. See last year a new entrant came and the all the companies have to readjust their annual distribution. Now what happens that we sold our quantities throughout the year and an annual bonus more than what we expected came in. So that is why it became exceptional this year also. Now the discounts are declared upfront from the beginning itself. So what happens that competition also takes that into account and starts offering pricing on the basis of that. So the surprise element of annual bonus is not this year, which was there last year.
Pritesh Chheda
Okay. Which means that the margin that now you’re reporting at 15 rupees or let’s say 11%. And 11% is a more normal number.
Rajesh Kothari
Yes, it is.
Pritesh Chheda
Versus the 14% which would have a 2, 3% type extra benefit last year, which was not called out in the call.
Rajesh Kothari
Yes, yes.
Pritesh Chheda
Okay, my second question is on the capacity side and the volume. So you know you had the HFFR capacity being utilized this year versus last year and you have called out that HFFR as a higher margin. But I don’t see it translating into EBITDA per kg yet. So you may want to call. You want to explain that part. And second, your capacity is 2,33. Do you have adequate capacity in this to ensure that you have a double digit volume growth next year, which has called out about 14, 15% or do you need addition of capacity during the year to generate that volume?
Ddev Surana
Yeah. So first let me answer this question with regard to hfr. If you look at the total volume of HFR last year, what we have done is close to 3,200 tonnes out of the total 190,000 tonnes. So even if the margins are a little better in hfr, the overall impact on the is not going to be significant because the volumes are not significant. This is one part now coming to the capacity part. Yes. If you look at the various segment, various product categories in case of HFFR, we are literally using almost 80% of the capacity installed capacity by now.
So we need the capacity there for which we already ordered for the equipment. And the equipment will get commissioned in the first quarter means before June or maybe July this year. Then similarly, we need to add capacity for XLP and Cyplus and Semicon Group there also we have ordered equipment and before say July, August, that capacity will also come on stream. So we will have enough capacity with these additions to meet our 15% this CAGR projection for the current year.
Pritesh Chheda
How much capacity are you adding in quarter one and whatever?
Arihant Bothra
For quarter one we are adding only 5,000 tons of XLP on XLP part while in quarter two installations will take place but expected, you can say COD in the third, third quarter, that is for PVC close to 25,000 tons, HFFR 5,000 tons and another few capacities are. Being debugged
Pritesh Chheda
sir, you are not audible so you need to tell again.
Arihant Bothra
So for XLP, in the first quarter, 5,000 tons have been made operational. 5,000 tons per annum capacity have been made operational. While some capacity are being debottle laid and machineries are in pipeline which will be operational by third quarter. When we talk about PVC Q2, the machines will be available in the plants as per the overall estimation. The commercial operation will start from the third quarter. The capacity is close to 25,000 tonnes. For HFFR, 5,000 tons is already working and 5,000 tons is already ordered which will be operational by end of September.
Pritesh Chheda
So it is 5,000 plus 5,000 plus 25, 35,000.
Arihant Bothra
It is already. There will be some additional.
Pritesh Chheda
Okay, I’ll come back if you have more questions.
operator
Thank you. Next question is from the line of Bhargav from Ambed Asset Management. Please go ahead.
Bhargav
Yeah, good afternoon team and thank you very much for the opportunity. So my first question is on exports. So if you look at last four, five years, we were doing generally 25% plus of revenue as exports, but that number has been falling in the last one year. What are we doing to sort of reignite our exports?
Ddev Surana
It is last year. In our earlier commentary we said that the first half we had a challenge of higher sea freight and those difficulties were there. But you can see in the last quarter we have improved our export numbers because sea freight and logistics situation is still challenging and local demand was very strong. So we were placing more material in the local market. But in last quarter we decided that we need to retain our market share and also secure growth from the export volumes. So we went out and secured the export orders in an aggressive manner as long as the EBITDA margins were comparable to the local ebitda.
Okay, so this quarter you must have seen the growth in the export volume. Volume. And we see the same momentum continuing in the current year. So first quarter, second quarter, you’ll see continuous growth in our export volumes.
Bhargav
So sir, in FY26, can we expect the share of exports to come back to 25% of overall revenue?
Ddev Surana
Yes, absolutely.
Bhargav
And exports generally tend to have higher margins. Right. Is that understanding correct?
Ddev Surana
Yeah, this understanding is correct. But unfortunately today we are facing this logistic issue, sea freight issues, that uncertainty part. So there are certain markets which are, particularly the long distance market, which used to pay you more, those are not so remunerative. And that is why we expect that at least EBITDA to be at par with what we earn locally. In some markets it could be Better. But of course the volume wise we will be able to regain 25% market share from export. But on EBITDA side it will take a bit of time to regain this earlier EBITDA numbers from the export.
Bhargav
Okay. Secondly sir, we were sort of in a testing phase for 132kV. So when do we start getting commercial revenue from this segment?
Ddev Surana
See, 132kv commercial revenue will not be possible before FY2720s 8 maybe. And the challenge today, even today, because last two quarter or three quarter constantly we are discussing this topic. Unfortunate part is that product is ready but we are not able to tie up. We have tie up with two customers but the demand is so strong with them that they are not able to spare the machines for trial. And until unless the type tests are done, we cannot move commercially. That is the big challenge at the moment. But people are promising because some of the companies are expanding their capacities and.
And they’ll be ready with the new capacity by end of this quarter, by June. So hopefully in June or July the trial should take place.
Bhargav
And lastly sir, on the HHFR you highlighted that we sold about 3,000 odd tonnes in FY25. Now that we are adding capacity. So are we confident that this 3,000 tons can cross 5,000 tons within FY26 and that’s why we are hiring capacity?
Ddev Surana
Yes, yes. See if you look at the capacity which we have sold last year, it is 3200 odd numbers. That quantity and the majority of the sales push has come in the second quarter. So now we are almost reaching the. Because generally you can produce 80, 85% of your installed capacity with the downtime and this and that great change and all. So now we are almost running at full capacity. So if you look at 3200 yearly average you might see that 250 to 60 tons a month. But if you look at last three, four months we are almost at the full capacity.
So we are quite confident that we will be able to push more material of HFR in the market because there is a pull.
Bhargav
And the driver will be mainly solar, right? Solar power will be the main driver.
Ddev Surana
Solar power is main driver. But apart from that the installation, cable installation in all multiplexes and metros, that is also a driver.
Bhargav
Okay. Okay sir, thank you very much for the updates and all the best.
operator
Thank you. Before we move to the next question, a reminder to the participants to ask a question. You may press star and one next question is from the line of Amar Maurya from Lucky Investments. Please Proceed.
Amar Maurya
Thanks a lot for the opportunity. Two questions. What was our trading volume for FY25 total? In terms of the revenue value, what would be the trading value last year?
Arihant Bothra
FY25 we did close to 327 odd crores.
Amar Maurya
327. Okay. And sir, now FY24 and we need some EBITDA per ton of around EBITDA per kg of around 15 rupees. Now this kind of EBITDA per kg sustainable going forward or how should we read this number.
Arihant Bothra
You’D like to address.
Ddev Surana
Which this, this quarter for 15,600 numbers you are talking about this?
Amar Maurya
Yeah, basically this, this quarter we must have done the volume of 50181, right?
Ddev Surana
We did a volume of almost 50,750 tons and.
Amar Maurya
750 and EBITDA of around 76 crores. Correct?
Ddev Surana
Yeah. So EBITDA is around 15 rupees. 15.6 rupees per kilogram or 15,600 per metric ton. This is the EBITDA for this quarter.
Amar Maurya
This includes other income. Sir, I believe this will be including again.
Arihant Bothra
Yes, yes.
Amar Maurya
[Foreign Speech] 14.9. So I’m just trying to understand. This kind of EBITDA per kg is now looking sustainable to you.
Arihant Bothra
So I would like to add first before Kothariji speaks on this. See other income is mostly part of business. There are three types of income in this for everybody to have a clarity. First is the export incentive which is part of the business. Once we export then only we get this benefit. But as per the India’s requirement we have to report it separately. Second is the foreign exchange gain loss wherein we report our purchase at custom driven rates which is generally one rupee cheaper than the market driven rate. Similarly exports are recorded, sorry, one rupee higher than the market driven rate.
Similarly exports are recorded at custom rates which are one rupee lesser than the market demand rates. So on both sides we are under reporting revenue as well as over reporting expenses. So this additional gain is going towards the other income. Why we do so just to ensure that our GST compliances and GST figures tally with the same with the customs driven exchange rates and their figures. So there is no dispute whenever we file any bill of entry or shipping bill. Third, this includes interest income which is today majorly if you see we are net debt free.
So whatever debt we are taking is on sort of a arrangement to ensure that our limits which are committed to the bank are also utilized at a limited level whilst the same amount does not stands idle. And we Earn some revenue on it. So interest cost becomes part of the finance cost while interest income shows us other income. If we consider all this as part of business then it will reflect the correct EBITDA number. Now as far as going forward maintaining of this number is concerned we have been continuously maintaining from the earlier quarters that 15 rupees and above is something which we are trying to maintain.
And if you see the last three quarters 15.3, 15.5 and 15.6 is the overall EBITDA number. But KG basis which we have achieved I now hand it over to Kothareji to add further.
Rajesh Kothari
Yeah. So Ariant has already clarified that 3/4. We have demonstrated that this number is maintainable. And in all concourse we have said that always in the businesses some headwind and some tailwind be there. So there will be a range. There cannot be an absolute number. The range, what we expect is the range is going to be between 14,500 to 16,000 rupees per metric ton of EBITDA. This is achieved.
Amar Maurya
Okay. And sir, if you can give me the volume number of last four quarters. Q1, Q2, Q3, Q4 exact number.
Arihant Bothra
Just a second. So Q1 was 46,000 tons. Q2 was around 45,000 tons. 45. Q3 was around 48,000 tons and Q4 is around 51000 tons.
Amar Maurya
So 5075. Right? 50750
Arihant Bothra
075. Yes.
Amar Maurya
Okay. So basically sir, if I include. If I exclude other income then basically from last three quarters your EBITDA per kilogram is in the range of 14 rupees to 15 rupees. That is what you are saying.
Arihant Bothra
Yes. But generally we include the other income because as per US it is part of the business.
Amar Maurya
Got it sir, Got it. Point taken sir. Thank you.
Arihant Bothra
Thank you so much.
operator
Thank you. Next question is from the line of path Kotak from Plus 91 Asset Management LLP. Please go ahead.
Parth Kotak
Hi. Thanks for taking my question sir. So one is on the receivables. Receivables have increased for a couple of years. And how do you see the working capital intensity changing especially with increased exports and Capex coming up.
Ddev Surana
As far as the receivables are concerned we don’t see any issue in this. This temporary increase is because of the increase in revenue as well as specifically if you have to see the last quarter has seen an increase in the raw metal prices by close to nine to ten rupees. The same has been passed on. So similar percentage if you see is around 6 to 7%. As far as the effect is concerned so when you compare this with the last numbers probably of H1 then 6 to 7% increase in the receivable is expected and that can be maintainable.
Secondly as far as the capex and cash flow is concerned if you see we are generating close to 185 crores of PAT and 200 crores of cash in the system the capex we have done last year is close to 55 odd crores. And majorly the money has gone for reduction of the working capital utilization and other from banks. Even the reliance on higher credit period creditors is also being reduced and negotiated for a cash discount or you can say other benefits. Similarly the additional CapEx which we are planning for the coming years is planned in this manner that it will first the generations will first cater to the capex While the balance revenue generation cash generation will be allocated for the working capital utilization.
If there is any further requirement then we may look for other alternatives.
Parth Kotak
Got it sir. Got it. That was a fairly detailed answer. So second is just want to get a sense on our manufacturing capabilities. In the presentation we’ve mentioned our partnerships with IIT Kharagpur and UICT1. Is there any differentiate differentiating factor globally for DDEVs products or manufacturing practices with other players in the market. And are we working on some other chemistries or sustainability solutions that could differentiate ourselves?
Rajesh Kothari
Yes. So now when we say the differentiator because we. If you look at our slides that our manufacturing processes involve the chemical reaction reaction based compounding and that is where the precision of that reaction and repeatability of that reaction these are two very important factors. These are the differentiator between us and any other competitor and our XLP product. We are one of the leading players globally who have got a recognition for consistency of the quality and and also the capability to develop tailor made product at shortest possible Notice the time which we take for the developing new product because our R and D backup and understanding of the product chemistry is so strong that the amount which we take for developing a new product tailor made for any of the customer is much less than any of our competition.
And these are the things which are playing in our favor.
Parth Kotak
Got it sir. Thank you. Thanks for answering my questions.
operator
Thank you. Next question is from the line of Vikash Daga from Yeshvi Securities. Please go ahead.
Vikash Daga
Hello. Yes sir, could you please.
operator
Mr. Daga may we please request you to use your handset? Sir, your voice is very low. Please go ahead.
Vikash Daga
Sir, could you please reiterate your volume and revenue guidance for the Next year.
Ddev Surana
Yes. So volume guidance is around 13 to 15% of volume growth whilst revenue guidance is 12 to 15% of value growth.
Vikash Daga
Okay and could you please share the competition you mentioned that entered last year?
Rajesh Kothari
New supplier. New supplier.
Vikash Daga
Okay and could you please also mention the market share in the 3.3 KB wires and 32, 62 and 72 KV wires.
Rajesh Kothari
It is very difficult to give precise number. But yes, 3.3 KV is basically considered to be part of low voltage. So in low voltage our market share in India is close to 50%. When we come to the medium voltage for Cyoplas route our market is close to 80%. And then rest of the semicolon and other products our market share is 1/3.
Vikash Daga
Okay sir, thank you.
Ddev Surana
Thank you.
operator
Thank you. Participants, to ask a question you may press star. And one next question is from the line of Shashi Ranjan, an individual investor. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Sir, can you just enlighten me about the SLP compound for 220 volt KV status?
Rajesh Kothari
Yeah. So XLP is basically insulating material. What we are doing today is up to 72kV and now we are trying to upgrade ourselves to 132kV first and then to 220kV. And as I answered the question of some of the investors where we said that revenue from 132kV is expected somewhere in financial year 2027 or 28. So this is our pipeline.
Unidentified Participant
Just a clarification on that. In view of the valued compounds like XLP and HFFR and especially HLP compounds going live by 27 and 28 FY27, 28. How confident you are of hitting 5000 crore of sales by 2030 when the value added compounds are I mean getting delayed. So can you just enlighten us about that on that line?
Rajesh Kothari
No, no. See this cable compound, this industry is mix of Compound required for 660 volt up to 440kV. OK so the range is quite big and we are already present where the maximum volumes are there. We are already present there up to 72kV. So the volume which or the turnover which we are getting from these products which we are doing currently is in the range of 2,600 crores plus. So even if you look at 15% CAGR till 2030 will be definitely we will to reach closer to 5,000 crores with our existing product line itself. And these additional product will definitely enhance our capability to reach those numbers faster.
But they are not that critical for reaching that volume number.
Vikash Daga
Okay, so thank you for the clarification. Just one last question on the capex of 110 crore in the coming financial year. What are the various segments in which you want which we are looking to spend at 110 crores?
Ddev Surana
Aryan.
Arihant Bothra
Yes. PVC, HFFR and XLP.
Unidentified Participant
Okay, so entire 110 crore goes to HLP and FFR. HFFR,
Arihant Bothra
HFFR, PVC and XLP. All three segments.
Unidentified Participant
Okay, thank you. Thank you for the time and answer. I’m done. Thank you for this. Thank you.
operator
Thank you. Next question is from the line of Gunjan Kabra from Nivesha Investments. Please go ahead.
Gunjan Kabra
Thank you so much for the opportunity. I wanted to understand that how should we see the volume growth in front of the cable companies? Like the cable companies in India are growing at a very high rate versus our volume growth. So like we have a very good market share. We are the leaders in the segment. So how should we see in terms of my understanding wanted to know that you know the the companies end user companies are growing so are we. Like are the imports basically increasing a lot more than of their sourcing component or in the recent times because of the rupee deputy depreciation imports and the lead time imports were lesser and we can gain market share going forward.
A lot more domestic sourcing can happen of these cable companies.
Rajesh Kothari
See the cable companies are having a different business model compared to us. Because all these companies are having certain products like building wire which goes for our electrification of our houses. We are not participating in that business much. So the kind of growth which they are generating from there, we are not participating. Secondly, every cable company is in having a EPC business where we do not participate. So their growth of EPC we are not able to participate. And that reflection of the growth you will not see in our volumes. Similarly in telecommunications sector we are not participating.
So there whatever the growth is being generated by them you will not see the replication of that in our volumes. Our growth and next point is very important. They are having a product which will enhance their business or their top line significantly. Whenever you are talking to the cable industry results they are not giving any quantitative input. When you look at their top line you will get the top line value. But it is very difficult for them to provide you a quantitative report that how much kilometers of a particular cable they have made. So as the copper and aluminum prices are are going up.
Okay, so their top line is showing a significant growth because of the metal prices also going up. That is one part. And as Aryan told in earlier this one Comments that last year we have seen the drop in our raw material prices compared to 20, 23, 24. So raw material prices didn’t support our top line increase at par with the cable. I hope we are clear on this.
Gunjan Kabra
Okay. Okay, thank you.
operator
Thank you. Next question is from the line of Amlan Chakraborty from AK Investment. Please proceed.
Amlan Chakraborty
Am I audible sir?
operator
Yes, go ahead.
Amlan Chakraborty
So my question to you is given the raw material prices fluctuation which business for some time how does the company expect for the input cost to stabilize in terms of the global prices? And I’m talking in the context of the crude prices dropping and D day being a major source. Taking the major source of raw materials from Reliance. That is the first question and how does dday have anticipate for supply chain issue stabilization along with developing more premium products and working towards higher margins. Thank you.
Rajesh Kothari
Thank you. So on the first question, see our overall marketing policy is very much clearer with our customers, rather transparent with the customers. Wherein whenever there is a change in raw material prices our price list changes and we immediately take the new orders on the basis of new price list. Any order which we receive are not of any long term nature. It are generally all spot orders and short term in nature. So whenever we see the prices input as a stabilizing then definitely we can say that raw material prices are not in our control. But our EBITDA margins in per ton basis is something which we can control and which we are focusing on to control.
We are trying to pass on whatever price increase or decrease is there to the customers. Whilst you have had a separate question in the same question that crude price movement. So in India it is not majorly the crude price movement which triggers the change in price. It is more of demand and supply which triggers the prices movement whether that is headwards or tailwinds. This is from that perspective. Secondly on on terms of supply chain disruptions, see on raw material side we have already clarified and we will again reiterate that we have domestic suppliers as well as international suppliers working with us.
Whenever we find any issue we can switch suppliers on both the sides. So raw metal we don’t have any specific issue as such. Similarly on the customer segment do export has hit for a couple of quarters. But when you see the overall market segment we have been ensuring that we don’t lose our market share in the export market as well. Whilst in the second quarter and third quarter we saw that the margins are declining in the export market. So we could, we were able to you can say divert those particular quantities to the domestic market and we have achieved quarter increasing capacity from this.
I wanted to just highlight that our focus is definitely to ensure that we sell higher quantities. But the global supply chain disruptions are not in our control. What we can control is how to allocate the quantities profitably whether in domestic or international markets.
operator
Sir, the line for the current question of Mr. Amlan got disconnected. Okay, so meanwhile we’ll move to the next question. But before we move to the next question a reminder to the participants to ask a question. You may press star and one next question is from the line of Saket Kapoor from Kapoor and company. Please go ahead.
Saket Kapoor
Thank you for this opportunity. Firstly as you mentioned about 10x being highest at closer to 51,000 per ton. So what would be the trend going ahead? And also as you alluded to the fact that RN prices there was an increase and so we will have with that lag effect we will have that also getting passed on in the quarter ahead. How should we look into these two aspects going ahead?
Ddev Surana
So for the second question probably I just tried to answer that whenever there is a change in prices we have already passed on. That is reflected from the EBITDA per ton last quarter in third quarter our EBITDA per ton was 15.5 rupees overall while in this particular quarter it is 15.6. Even if there is increase of raw material prices by almost 6 to 7 odd percent. So as we have been informing to all our stakeholders that prices whenever there is a movement upwards or downwards it are immediately passed on through the change in price list and new orders are taken on the basis of the new prices.
Whatever orders we generally have in hand we have similarly back to back inventory already with us. So there is no major, you can say price movement impacts we face for the raw metal side as far as the quantity is coming concerned. Yes, our trajectory remains the same. We have targeted to grow at a CAGR of 13 to 15% of volume growth last two years we have been able to see a volume growth of 16% and 14% respectively. And we ensure rather we are committed to achieve this targets of 13 to 15% volume growth.
Saket Kapoor
Right? Sir, for the tax payment part this year our tax payment is higher when we look at the comparison from last year. So what explains this? In the cash flow we have seen the payment net of payment is 76 crore. Last year it was 58. However our pvt numbers have almost remained flat. So if you could just explain to us what led to this higher tax incident.
Ddev Surana
So it all calculation as per The Income Tax act, there are, you can say provisions for which the tax is not payable whilst there are provisions for which it is payable. So it is a calculation. But overall on a broader sense I can say you attack is remaining in the range of 25 some odd percentage which is as per the new law applicable to us.
Saket Kapoor
And lastly sir, since we are our major customers are the wires and cables and we are servicing all the top notch of the industry, so what are the current business sentiment? If you could just allude to us, how have this financial year began in terms of the key players like Kei and the other, the response time from them and the demand. If you could just give us some more color of how the economic activities have begun for the current financial year. The first quarter which is the ensuing.
Ddev Surana
Quarters, I will break the question in two parts. One is how they look the year ahead and beyond. And second, what is the ground realty? For ground realty, I will definitely request Puthariji to answer. But on the first part, if you have seen the commentaries of all the big players, four or five big players, they have right now given a very strong commentary that the demand is again robust for the current year and going forward as well. And probably they are also seeing a 13 to 16% average growth in this particular segment which is in line with what we are projecting.
So I can only say that whatever we were expecting, the demand and whatever guidance we have been doing are in sync with what our end customers are giving in their commentary as well. On the ground realty, I will request Kothari Ji to add.
Rajesh Kothari
Yeah, so as Ariel has said that the commentary is very strong from the cable companies and it is visible to because generally April to June quarter after a very strong fourth quarter, we see that cable demand slows down in the first quarter compared to the fourth quarter. But we are towards the end of May and we do not see any kind of slowdown compared to quarter four. Demand is equally strong in these months also and also the export volumes coming back with our effort to regain our share in the export market, we see literally no difficulty in achieving our projections with regard to volume growth.
Saket Kapoor
Right sir. Thank you sir. And all the best to the team. I joined with you sir.
operator
Thank you. Next question is from the line of Arnav Sakuja from Ambit Capital. Please go ahead.
Arnav Sakhuja
Hi, thanks for taking my question. So which would ask you,
operator
Mr. Anav, your audio is not clear.
Arnav Sakhuja
Am I audible now?
operator
Please go ahead.
Arnav Sakhuja
Yeah, so I was saying with respect to exports, when can we expect approvals for The US Direct exports to come through.
Rajesh Kothari
Yes. So we expect that within next one month we should have these approvals in our hand because we are working on different specifications. So we are right now working on three particular specifications of US market cable samples are there with the authorities. And we expect at least one approval before June 2025. It should happen in next two to three weeks time. And then the next two approvals should come another three months time. So that will open an opportunity for us to export to more markets. Not only to US Direct, US Direct is one opportunity. But also to the markets in Middle East, North Africa and Europe which are making cable for American market exports.
So we’ll be able to gain market share there as well.
Arnav Sakhuja
Okay, thank you.
operator
Thank you. Next question is from the line of Lavina from Spark Capital. Please go ahead.
Laveena
Hello. Hi sir. Thank you for giving me this opportunity. I had one question regarding the new capacity is being added in XLP and FFR compounds. What is the impact do you see in EBITDA per kg like based on the margin attractive capacities that you’re adding?
Arihant Bothra
We continue to maintain that since we are adding PVC capacity which has comparatively lower margins in per ton basis and it could be an HFFR on the high team basis. So continue to maintain that the 15. To rather Kudhari has let it 14.5 to 16 rupees and is something which we continue to commit that this is something maintainable.
Laveena
Okay, so thank you so much.
Arihant Bothra
Thank you.
operator
Thank you. Ladies and gentlemen, to ask a question you may press star and one participant. If you wish to join the question queue you may press star and one on your touch tone telephone. Next question is from the line of Arpit Singh from Agam Holdings Private Limited. Please go ahead.
Harpreet Singh
Sir. My first question is what will be the capacity added in the financial year 2026?
Ddev Surana
As we have highlighted, around 35,000 tons is something which we have already committed and are in pipeline. And there may be some debottleneaking activity which may also come up. So as of now 35,000 tonnes of PC, HFFR and XLP put together is already in pipeline
Harpreet Singh
and operational.
Ddev Surana
Well, you can consider XLP of 5000 ton is already operational and balanced by Q3.
Harpreet Singh
And the FNP operational capacity.
Ddev Surana
So since it is a first year you can say the operational capacity will be around 60 to 65% max. But going forward next year we can go up to 80 to 85%.
Harpreet Singh
Okay, thank you.
operator
Thank you ladies and gentlemen. That was the last question for the day. I would now like to hand the conference over to the management for the closing comments.
Ddev Surana
Yes, Kothariji.
Rajesh Kothari
Good afternoon, everybody. So it was a very, I would say, productive, an informative session of question and answer. And we hope and believe that we have been able to satisfy everybody’s, you know, queries to the best of our ability. And we assure the investors once again that we are working sincerely, honestly, to take the company to a different level altogether. With that note, I say thank you and goodbye to everybody. Thank you very much.
operator
Thank you, sir. On behalf of Philip Capital India Private Limited, that concludes this conference. Thank you all for joining us. And you may now disconnect your lines.