Dhabriya Polywood Ltd (BSE: 538715) Q4 2025 Earnings Call dated May. 26, 2025
Corporate Participants:
Unidentified Speaker
Digvijay Dhabriya — Promoter Chairman and Managing Director
Hitesh Agarwal — Chief Financial Officer
Analysts:
Unidentified Participant
Sumit Jha — Analyst
Pritesh Chheda — Analyst
Deepak Verma — Analyst
Manan Madlani — Analyst
Bhavesh Chauhan — Analyst
Madhur Rathi — Analyst
Reena Gattani — Analyst
Ajay Shantaram Kale — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Dhabria Polywood Limited’s Q4FY25 earnings conference call. As a reminder, all power spin 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 your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sumit Jha from XB4 Advisory. Thank you. And over to you Mr. Jhaj.
Sumit Jha — Analyst
Thank you. Good afternoon everyone and welcome to the quarter four and financial year 25 earnings conference call. Dhabria Polywood Limited. Today on this call we have with us Mr. Tigvijay Dhabria, Promoter, Chairman and Managing Director and Mr. Hitesh Agarwal, Chief Financial Officer. This conference call may contain forward looking statements about the company which are based on beliefs, opinions and expectations. As of today, actual results may differ. The statements are not the guarantees of future performance and involves risks and uncertainties and that are difficult to predict. A detailed safe harbor statement is given on the second page of the earnings presentation of the company which has been uploaded on the stock exchange as well as company’s website as well.
With this I now hand over the call to Mr. Dikvijay Dhabria sir for his opening remarks. Over to you sir.
Digvijay Dhabriya — Promoter Chairman and Managing Director
Okay, thank you. Good afternoon everyone. We welcome you all to the earning call for the quarter four and financial year 25 of the Dhabaria Bollywood Limited. I trust all of you have had a chance to go through our financial results and investor presentation which we have uploaded on the company website and the stock Exchange. Financial year 25 was a year of solid execution and strategic progress. Our performance reflects the strength of our multi brand strategy, the scalability of our manufacturing and design capability and our firm commitment to innovation and sustainability. We remain focused on driving profitable growth, improving operational efficiency and delivering value to all stakeholders as we move forward.
Now let us now let me tell you all about some key developments and attainments in the PVC and the UPVC building material industry. The sector continues to benefit from macroeconomic fundamentals such as the rapid urbanization, rising disposable income, a growing preference for the eco friendly material and robust real estate growth particularly in the tier 1 and tier 2 cities. India’s real estate sector is expected to witness substantial expansion over the coming years driven by a demographic shift towards nuclear families, increased NRA engagements and easier access to housing finance. In parallel, the UPVC doors and window segments are experiencing steady growth supported by the rising demand for the low maintenance and energy efficient alternatives to traditional materials.
Similarly, the furniture segment including PVC based and modular solutions continues to gain traction due to its affordability, durability and sustainability. Consumer preferences are increasingly moving towards modular and customizable interior solutions which offer aesthetic space, efficiency and quick installation. This trend strongly complements our offering under the Studio, Arezu and Dynasty model furniture brands. Our commitment to sustainability supported by a portfolio of design patents and innovation led products line continues to give us a meaningful age in the market. During the financial year 25 we actively participated in 10 major business exhibitions across key metros entire two cities which played a significant role in driving brand visibility and generating quality business leads.
Looking ahead, we have already finalized our participation in nine exhibitions for the current financial year, further demonstrating our commitment to outreach and industry connect. Marketing and promotional activities have also been a meaningful scale up. Our marketing and sales promotion expenses stood at rupees 3.26 crores in financial year 25 reflecting a 50% increase over financial year 24. This elevated investment has translated into stronger market penetration and improved customer recall especially for our fluted and soft panels and eco friendly modern furniture product line. Accordingly, our presence across social media and digital platforms continues to be strengthened enabling us to connect with younger design conscious audiences and leverage real time engagement.
This Omni channel strategy has been instrumental in positioning our Studio, Arezzo and Dynasty brands as leading names in the modern model of interiors. On the product front, we are witnessing robust traction in flu grid and soffit panels segment that are becoming increasingly popular for their aesthetic appeals and functional utility in both residential and commercial applications. We continue to maintain a healthy order book of rupees 140crores in our project related business which now accounts for approximately 30% of our overall revenues. This provides us with a strong revenue visibility and underpins our confidence in sustainable growth. Looking at the future, we are planning a capital expenditure of rupees fifty to sixty crore over the next two to three years primarily towards establishing a dedicated manufacturing facility for the WPC doors and enhancing capacity at our Southern India plants.
This investment will be financially largely this investment will be financed largely through internal accruals reflecting our strong cash generating generation capabilities and prudent capital management. In recognition of the company’s robust financial performance and healthy balance sheet, the brand has recommended a higher dividend of 7% compared to 5% in each of the past two years. This move is a token of appreciation for our shareholders continued trust and support with these strategic initiatives and financial discipline. We remain confident of sustaining our growth momentum and creating long term value for the stakeholders.
Thank you. Now I hand over to the call to our CFO Mr. Hitesh Agarwal for financial comments. Over to Mr. Hitesh. Thank you.
Hitesh Agarwal — Chief Financial Officer
Thank you sir. Good afternoon everyone. We are pleased to report that Q4FY25 reflected healthy progress showcasing the effectiveness of our diversified product portfolio and customer centric execution. Our consolidated revenue stood at 63.47 crores, registering a healthy year on year growth of 15.9% compared to 54.78 crores in Q4FY24. This growth was driven by demand across all our product segments. The company’s EBITDA for the quarter came in at 10.23 crores, a 17.5% increase over the same period last year. EBITDA margin excluded 16.1% reflecting an improvement of 20 basis points year on year. This margin expansion is attributable to better product mix, improved operating efficiencies and consistent pricing discipline.
Profit after tax grew by 32.3% year on year reaching 5.38 crores up from 4.06 crore in Q4FY24. The PAT margin also improved by 110 basis points increasing to 8.5% level compared to 7.4% in the same quarter of the previous year. The quarter’s commendable finish was driven by the management’s focused effort on strengthening operational capabilities and enhancing bottom line performance for the full year. FY25 our revenue from operation stood at 235.11 crores, an increase of 11.1% over 211.63 crores. In FY24 the company’s EBITDA expanded to 37.50 crores reflecting a 20.9% year on year growth. Our EBITDA margin for financial year stood at financial at 25 stood at 16%, up by another 130 basis points from the 14.7% in FY24 supported by both operating leverages and our focus on high margin product categories.
On the profitability front, PAT for the year was 18.03 crores, a strong 28% increase over 14.08 crores in FY24. This led to a PET margin expansion of 100 basis points taking the margin from 6.7% to 7.7%. These results underscore the resilience of our business model and the scalability of our diversified operations. Let me now walk you through the segment wise performance beginning with Q4FY25. In Q4FY25, TVC profile recorded revenue of 37.7 crores registering a 20.4% growth. UPVC window revenue grew by 5.1% reaching to 14.84 crores. Modular furniture reported revenue of 11.56 crore, growing by 17% year on year.
For the full year, FY25 TBC profile contributed 135.11 crores, a growth of 10.4% and continue to be the highest contributors. Our top line UPVC Windows delivered revenue of 59.83 crores up by 10% year on year basis. Modular furniture posted revenue of 40.17 crore up by 15.4%. The revenue mix contributes continues to diversify with PVC profile accounting for around 58%. UPVC windows 25% and modular furniture 17% of the total revenue in FY25. We are happy to share that our order book remains robust exceeding 140 crores with strong traction in institutional and builders projects particularly within our UPVC Windows, Aluminum Windows and modular furniture categories.
Thank you all. Now we can open the floor for the questions.
Questions and Answers:
operator
Thank you very much, sir. We will now begin the question and answer session and anyone who wishes to ask questions may press Star and one on their Touchstone phone. If you wish to withdraw yourself from the question queue, you may press STAR and two participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pritesh Cheddar from Lucky Investments. Please go ahead.
Pritesh Chheda
Sir. Can you just share what were the hits and Mrs. For FY25? Where do you think you lag behind? Or where do you think you move materially ahead? If you could share that. And for FY26, how do you see the growth shaping up?
Hitesh Agarwal
Yep. See. Yeah. FY25. Yeah. We have achieved the top line of 235 crores which is about 11% from the previous year by 24. See, we had expected some higher figures in that year but as we mentioned in our previous earnings call due to certain factors which are beyond our control, like extended rainy season and then certain restrictions on the construction activities particularly in Delhi ANCR region which went up to around 4045 days. So these 23 factors basically we have compromised some of the revenue particularly from the project business related to UPVC windows and model of furniture.
Because during that period on site executions were totally stolen. So that was the reason and going forward we are quite optimistic. In fact the whatever the reason we have taken earlier the long term vision which we had shared earlier. Going forward for next four, five years we have to grow certain percentage. So we are stick to that and looking to the current order book, the market response, our multiple efforts towards penetration in different segments. So going forward good growth is expected recently.
operator
Mr. Chada, do you have any further questions? Sir, Mr. Chera, we are unable to hear you right now.
Pritesh Chheda
Okay, you can hear me now.
operator
Yes.
Pritesh Chheda
Okay. Sorry sir, I missed you. For FY26 what did you say you will grow?
Hitesh Agarwal
See projection what we have earlier estimated to grow with the percent long term vision of 25% year on year growth. See if you see our last three years performance we have grown by 21% CAGR basis. So going forward also and we are quite optimistic to cross this average of growth basically so around 25% plus growth we will see in coming year also.
Pritesh Chheda
Okay, this 140 crore order backlog that you mentioned what was the order backlog Same period last year. So we can know the growth in your backlog.
Hitesh Agarwal
Yeah, almost same, almost same favor basically that 140 crores. So in fact in mid of the last financial area it was around 135. So we are adding new orders and regular execution is happening. So as on 1st April of this current current finance is there so an executed order value basically that is on the same level of around 140 crores. So we said product mix of UPVC window and aluminum window around 99 crore and remaining is related to modular furniture business.
Pritesh Chheda
Okay and just can you for FY25 give the breakup again the fluted panel door, UPC window and furniture and yeah.
Hitesh Agarwal
FY25C overall revenue breakup for this PVC profile which is around 158 of total revenue and 25 came from the UPVC window and around 17% is from the furniture segment.
Pritesh Chheda
So can you give sir can you give the absolute revenue number and the YOY growth?
Hitesh Agarwal
Yeah, absolute number and the YOY growth that also I’ll just.
Pritesh Chheda
Yeah, yeah, yeah.
Hitesh Agarwal
So for this PVC profile that which is our B2B business segment. So here we did the business of 135 crores against the 122 crores in previous year FY24 registering a growth of around 10%. And for the UPVC window it’s almost 60 crores against the FY24 figure of 54 crores. So here also that growth was 10%. And in modular furniture we registered a revenue of 40.017 crores in FY25 against the 34.81 in FY24. Here the growth was a little higher is it was 15%. And in fluted panel Fluted and soffit both are from the same segment.
So total revenue in FY25 it was around 44 crores in FY25 against the 30 crores in by 24.
Pritesh Chheda
Okay. So fluted panel grew 50%.
Hitesh Agarwal
Yeah. 44 crores.
Pritesh Chheda
Yeah. So any reason why a core original product of PVC profile grew? Let’s say low single digit.
Hitesh Agarwal
See in pvc PVC profile also there is a growth seed. This fluted panel as we mentioned earlier also this is a ceiling and paneling application. Earlier it used to be low cost single layer PVC profiles. So now it has been upgraded with the patented designs and certain other solutions. So by which we can cater to the middle and upper class residences and commercial spaces also. So here the growth is more and in fact our focus is also on the high margin value added products. So in those segments also there is growth. And similarly in the fluted panels, the ceiling paneling application we can see that it is contributing more as compared to the other product.
Pritesh Chheda
Okay, thank you sir. I’ll come back if I have more questions.
Hitesh Agarwal
Yeah, thanks. Thank you.
operator
Thank you. Participants, you may please press star and one to ask questions. The next question is from the line of Deepak Verma from Iota Investments. Please go ahead.
Deepak Verma
Hello.
operator
Yes sir. Yes sir, please you can be able.
Deepak Verma
Okay. I had a couple of small questions. One is what would be your maintenance capex figure annual any approximation?
Hitesh Agarwal
Sorry, can you repeat sir,
Deepak Verma
Capex capital. Expenditure that goes towards maintenance of assets.
Hitesh Agarwal
Expenditure for this FY25. Yeah. Maintenance capex is generally in the range of 3 to 4 crores annual basis wherein we have to replace, upgrade or replace certain process.
Deepak Verma
Understood. The other question is if we look at these segments which segments do you you know see growing fast and what kind of returns on invested capital. If you could do a comparison.
Hitesh Agarwal
Bifurcate this in all our three segments that our major focus and major revenue contributing segment is PVC profile extrusion where we make the door profiles and furniture profiles. And this Fluted and all. So here the capex is more and in fact this particular segment requires more capex. Also if you have to add certain capacities and monetary terms, capital expenditure is higher as compared to other two segments.
Deepak Verma
Okay, so you’re saying current capex current and maybe near term.
Hitesh Agarwal
Yeah.
Deepak Verma
And in terms of return on invested capital, which segment would fare where as compared to the other two?
Hitesh Agarwal
As I said that we can say more return on capital investment will come from the UPVC wind and modular furniture because their capital expense capex amount is lesser. Lesser capex is required to generate the revenue. But in the higher.
Deepak Verma
A bit or something. I, I meant to see.
Hitesh Agarwal
That higher margins. Margins are almost same and all three. Yes. Currently in our case in the furniture IITA is little bit lesser because.
Deepak Verma
I’ll just, I’ll just explain myself further. What I’m looking at is very, very roughly speaking, ebit, you know, earning before interest and tax divided by whatever investments on average we make per segment There that’s the comparison I’m looking at. When I’m looking at ROIC roughly, roughly.
Hitesh Agarwal
This will be around maybe 20, 20% plus for each.
Deepak Verma
I meant a segmental comparison. Sorry.
Hitesh Agarwal
Yeah, almost is 1 or 2% differentiation is there and in the furniture it is lesser. And then second one is the UPVC window and better margin is in the this PVC profile segment because here value added products are there and capital cycle is a bit higher over there. We can put it more.
Deepak Verma
Okay, so we’re saying that ROIC is higher in PVC profile.
Hitesh Agarwal
Correct.
Deepak Verma
Versus the other two. And investments are also going there only versus. And gross prospects also you’re saying are better.
Hitesh Agarwal
In all three verticals. It’s there. And more growth is coming up from this PVC profile. In monetary terms we see that it is contributing around 58% of our overall revenue.
Deepak Verma
And so let’s see, it’s been declining over the years. It’s gone down because modular furniture has. Taken over
Hitesh Agarwal
modular furniture as you mentioned earlier also that earlier we were focused on B2B or institutional supplies only. Last three years we have shifted. We have added the project business also for model of furniture. So that is contributing now.
Deepak Verma
Okay, thank you so much.
Hitesh Agarwal
Yeah, thank you.
operator
Thank you. Ladies and gentlemen. In order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to two per participant. Should you have a follow up question, please rejoin the queue. We’ll take the next question from the line of Manan Madlani from Kamayakya Wealth Management. Please go Ahead.
Manan Madlani
Hi sir, thanks for the opportunity. My first question is what’s the utilization rate for the current year and what’s the CapEx number are we planning for next year?
Hitesh Agarwal
The capacity utilization for this PBC profile extrusion it was around 53% in current last financial year by 25 based on the increased capacity. Because we had done the capacity expansion in last financial year and for the UPVC window it was 40% capacity utilization in last financial year. Furniture as we have been mentioning earlier also because it is a non standard kind of formulation so there is no rated capacity applies in that furniture. Your second question related to the CapEx in next two years. As our CMD mentioned in his introductory speech that company is planning to invest around 50 to 60 crores in going forward in next two to three years for new product addition capacity.
Yeah, sorry, can you Repeat?
Manan Madlani
Yeah, this 50 to 60 crore will be split over two to three years or each year will spend.
Hitesh Agarwal
Yeah, each year I see that for particular this particular year we can take around 15 crores of capex if the things get speed up because we are working on certain new product addition as mentioned that WPC door. So that project is going to be light up in this financial year if it happens in within before March and maybe that CAPEX for current year will be little higher. But yes, for next two to three years we have made a longer plan. So in that we are going to add some capacities also for the extrusion particularly in South India where the market is really good and for WPC doses and other certain other solutions also.
Manan Madlani
Okay, and my second question is on Arizona Studio. So in BPD I can say that there are four showrooms available. So is it related to Horizon Studio?
Hitesh Agarwal
Yeah, see four showroom. You see these four showrooms are not exclusively related to ARRHO Studio Studio exclusive showrooms are two One in Japan, second one is in Gurgaon and the rest two are the our application center which belongs to entire range of the product of the group including studio range also.
Manan Madlani
Okay, and we are adding two more store in byte Q2 right?
Hitesh Agarwal
Yeah. For the current financial year by 26 we have planned for the two more studio original studio to be.
Manan Madlani
Where are you trying to add these tools?
Hitesh Agarwal
Yeah, these one in South India, Southern India we are planning and second one maybe in western region only that location is yet to be decided.
Manan Madlani
Okay, so what’s the plan going ahead like next two to three years Are we accelerating to know adding this kind of studios more and more like what’s the plan here?
Hitesh Agarwal
See I Have furniture segment. Since we started this modular furniture working through projects for the real estate we have seen a very good response and is being reflected in our figures. Also for the dynasty model of furniture business and similarly for the studio we are. Since we are we have already built up the capacities. We have added several high end machines here and entire design teams and all so rage is there. So going forward the plan is there to announce this studio. But as of now we are going slow and steady in particularly in Studio Horizon segment.
So two studios are planned for current financial year. Maybe going forward we will speed it up based on the market response.
Manan Madlani
Okay, so this will be like the. What you say the client side of the studio, right? So people will come there, see the products and they’ll buy from the distributor or dealer, whoever is there.
Hitesh Agarwal
Yeah, See this is studio. We are having become a complete display of our product range and we have a digital library over there. We will design. We can design the solutions in front of the customer itself as per their requirement. We have made a long library of.
Manan Madlani
Standard and non standard.
Hitesh Agarwal
Non standard solutions both.
Digvijay Dhabriya
So the standard solutions we are providing to the small customers and the delivery time, we are shortening the delivery time. So in front of them. Suppose a person is coming with a flat design of his flat. We will design the entire furniture in front of them and show him all the colors, designs, materials and quotation at the same time and make the all the executions within a limited time period so that there they will not disturb in and they can save their time. Because all the couples are working nowadays they don’t have time for running around the execution of the INTJs.
Manan Madlani
Okay, so this is a very exciting segment. Like if you. Even if you see the metro cities only this segment can become a huge for the company. So how are we planning to compete with unorganized players? Because we know there are many unorganized and even big organized players are into modular furniture. So how are we competing with them? Like on the basis of prices or timing. You already mentioned. But other than that, what’s the strategy here?
Hitesh Agarwal
See, primarily it’s based on the design and execution. The only thing that what. What range of products we are having seen is. Yes, you have rightly mentioned that in furniture industries has more unorganized players in this. But there that you will not find all kind of the finished solutions that upgrade latest designs and patterns with the organized players. Being an organized player, having the presence all over India digitally available to everyone and physical infrastructure to visit us and to see the product physically and then get it Designed there itself. So all those features definitely differentiate us with the unorganized players.
And since we have the education capabilities, working with the large builder, developers and architect teams. So that also give us the ease to compete with others. Okay.
Manan Madlani
Thank you so much sir. I wish you all the best. I’ll jump back into.
Hitesh Agarwal
Yeah, thank you Mananji.
operator
Thank you. Thank you sir. We’ll take the next question from the line of Bhavish Chauhan, an individual investor. Please go ahead.
Bhavesh Chauhan
Sir. With more than 20% sales growth that we are expecting in FY26 and even going forward what is our guidance on margin? Should it sustain at current levels?
Hitesh Agarwal
Margin side, see the gross and EBITDA both we have been putting regular efforts to maintain this and you can see from the continuous performance of last four to six quarters. So we have been improving it on both the fronts. So we are confident that these margins can be easily maintained going forward also.
Bhavesh Chauhan
Okay. And in terms of sales growth, should it be over the next three to five years? Should we.
Should it be more than 20%?
Hitesh Agarwal
Yeah, it should be. In fact we have mentioned it earlier also and the kind of the product range, what we have developed, the infrastructure in terms of our showrooms, depots and all and the market scenario that real estate growth and all those factors gave us the confidence that this much growth is definitely achievable.
Bhavesh Chauhan
Great answer. Last year we did very well in terms of managing our debt. So if I can see year over year it’s around 53 crores more or less stagnant. So going forward how should it be
Hitesh Agarwal
that regular expansion is happening and that we see that in last year also we have done around 12 crores of capex in the different segments and also maintenance.
Maintenance capex part. So yes, we are working on reducing the debt also regular repayments are happening and going forward in last four to five years. In fact we have the plan to be directly also.
Bhavesh Chauhan
Okay, so great and all the best.
Hitesh Agarwal
Thank you.
operator
Thank you. The next question is from the line of Madhurati from Countercyclical investments. Please go ahead.
Madhur Rathi
Thank you for the opportunity. Sir, if I look at our Q4 number. Sir, gross margins.
Digvijay Dhabriya
You are not audible please. Can you speak louder?
Madhur Rathi
Yes sir. There’s no audio better right now.
Digvijay Dhabriya
Yes, please.
Hitesh Agarwal
Yes, yes.
Madhur Rathi
So I wanted to understand if I Look at our FY25 versus FY24 numbers our gross margins have improved by 3 odd portion. And so if I look at our. Revenue or modular furniture segment as grown at a higher rate. So I’m trying to understand is the modular furniture coming at a higher margin or is the gross margin improvement because of something else?
Hitesh Agarwal
See gross margin improvement is mainly due to the two factors. One is the primarily focus on the high margin solutions that is the primary one reason and the second one that stabilizing of the raw materials also helped us to get the better margin and across labor basically so both both the factors contributed to this higher margins stable pricing was prices and at the same time our focus on the high margin solutions Got it.
Madhur Rathi
So was there any inventory loss in FY24 or answer if there is a raw material pricing increase with what lag do we pass on these price increases or decreases to our customers?
Hitesh Agarwal
There is no inventory loss applicable to our industry because see all the inventory is rotatable in within two to three months cycle basically so we are not keeping any longer run inventory there the prices reduction are happening. It’s majorly price reduction or stability applies to the PVC region which is a crude oil by product and where the inventories is maintained for just one to two weeks only. So it’s a regular supplied raw material. So what are another question.
Madhur Rathi
That answered my question sir. I have a next question sir One is sir if you could give me margin difference between our PVC profile UPVC windows and modular furniture segment what is the margin differential on all of these three products?
Hitesh Agarwal
See it’s about 2 to 3% differentiation which is presently at the lower side in the module of feature because of the lower level of top line. Basically there is no reason on the other PVC windows and the PVC profile margins are almost on the same levels.
Madhur Rathi
Because of 2 to 3% lower for modular and remaining seminar. Okay sir, got it.
Hitesh Agarwal
Remaining.
Madhur Rathi
Yeah yeah sir currently we are operating at a very low decent utilization what would be the revenue potential from the current capacity as well as sir the 50 to 60 crore capex that we are going to do over the next two to three years what would be the revenue potential from that?
Hitesh Agarwal
It is 50 to 60 at the current capacity Revenue generation of around 450 to 500 crores is easily possible and Capex which we have planned for the next two to three years which is related to certain new product additions and at the same time for some capacity announcements for our South India plant also. So once that is implemented so that will definitely contribute around 150 to 200 crores of top line that would be the additional one after adding all those capacities.
Madhur Rathi
So just a final question from my end on this 50D this wood plastic composite door and the South India plant extrusion plant expansion. So what is the margin and would the WPC dose is it higher than our company average today? Answer the expansion that they’re doing in South India. Sir, are we going to add more value, added product, high margin, product capacity. In that
Hitesh Agarwal
the product addition of WPC dose is not based on the higher margin or some other calculation. It’s basically the requirement going forward because we since we are providing a solution for the board 3 house so whatever solutions currently we are having and that one component is missing that is that internal doors for the bedrooms and all. So for that all we are coming up this with the solutions. Yes, margins since it is from the same segment, same line of business. So similar margins we can expect from this.
Madhur Rathi
Sorry, competitors. Can you repeat?
Hitesh Agarwal
Actually your voice is not.
Madhur Rathi
Audio better right now.
Hitesh Agarwal
Yeah.
Madhur Rathi
So who would be our competitors in this segment?
Hitesh Agarwal
See competitor in the PBC profile extrusion which is a B2B2B segment that listed peers. There is only one party as currently which is from Gujarat, Ms. Industries and then there are several regional players everywhere. You know, so many regional players are there.
Madhur Rathi
Got it. Answer in this WPC door segment who would be the competition?
Hitesh Agarwal
WPC doors. See that’s kind of solution which we are working on and we are planning to bring in according to the information what we have it is the new solutions for the Indian market.
Madhur Rathi
So that was from my end. So thank you so much and all the best.
operator
Thank you. The next question is from the line of Rina Gattani from Paul Asset Consultant Private limited. Please go ahead.
Reena Gattani
Yeah, hello. Thank you for the opportunity.
operator
Ma’ am. Sorry to interrupt, your audio is low. Can you increase the volume and speak please? Yeah.
Reena Gattani
Am I audible now?
operator
Yes ma’ am. Please proceed.
Reena Gattani
Yeah, so thank you for the opportunity. And so my first question would be sir, like last financial year also you had said that you will achieve the revenue growth of 95% but actually achieved has been only 11%. And. And as you said it was because of the. And the other reasons and going forward you are saying that you will achieve around 25% as well. So all these things you know might happen in the forthcoming also. So is there anything planned so that you know such things will not happen in the future?
Hitesh Agarwal
These negative factor which affected our revenue last year have been considered by us while projecting the revenue growth for the current year. These are the uncertainties which are not in control of anyone. But yes, based on the increased product range, our penetration throughout India that growth, what we are projecting now is definitely achievable considering these One or two factors are repeated.
operator
Ma’ am, you are not audible. Can you unmute yourself and speak please?
Reena Gattani
Yeah. Am I audible?
Hitesh Agarwal
Yes.
operator
Yes. Yes, ma’ am.
Reena Gattani
Yeah. Am I audible, sir?
Hitesh Agarwal
Yes, ma’ am.
operator
Ma’ am, I’m sorry to interrupt you. May I request you to use your handset please? There is a static on the line otherwise.
Reena Gattani
Yeah, so am I audible now?
Hitesh Agarwal
Yes, ma’ am. Yes, loud and tinger.
Reena Gattani
Am I audible now?
operator
Yes, yes ma’ am.
Hitesh Agarwal
Please proceed.
Reena Gattani
Yes, so my second question would be. Sir, like you have said that you have planned 50 to 60 crore expansion in the next three years. And you have also said that within four years you wanted to be without loan in your book. So how would it be achieved along with the expansion plan?
Hitesh Agarwal
I’m see the. As you can see that in current financial year we have the very good cash flows with us. In fact around 25 crore plus cash profit is there in the books. So going forward based on the increased business and all so this should also increase. So considering the profitability incremental business so that capex can be met out with the mostly with the internal accruals and at the same time our vision to be debt free in next four to five years can also be easily achieved.
Reena Gattani
Okay sir, so you mean to say the expansion would be from the internal accruals mostly, right?
Hitesh Agarwal
Yeah. See it depends on the priorities. If something gets prioritized in that case maybe we have to go for some of the short term of financial assistance. Otherwise as of now we have planned to meet this expansion plan through internal accruals only.
Reena Gattani
Okay, thank you for answering my question.
Hitesh Agarwal
Thank you.
operator
Thank you. The next question is from the line of Deepak Verma from Ayodhya Investments. Please go ahead.
Deepak Verma
Yeah, I was just noticing that this growth in revenue has fallen quite a lot this year. And since we are projecting a 2025% growth next year and so on, was there any specific reason why it was not so good this year?
Hitesh Agarwal
See that last year there were certain factors which affected Q2 and Q3 revenues. But in particular so we were not able to reach to the expected levels going forward since we had put a lot of investment in an investment on the promotional activities and placing ourselves on different position at certain cities and going the entry with several new builders and developers also. So considering all those sectors that revenue growth in coming years is surely achievable. What we have projected.
Deepak Verma
Now could you throw a bit more light on what factors caused this? Slow. Slow down.
Hitesh Agarwal
Yeah. Last year see that there was a extended rainy season since A lot of revenue comes from the project related business being a uvbc windows and modular furniture and which are mainly goes into the Delhi NCR region. So last year that rains were extended till almost second half of the August. And then there was the long restriction on the construction activities that grab 4, graph 3, graph 3 and grab 4 restrictions were implemented by the Supreme Court due to the positions and all. So all those sectors affected the on site activities. Basically. So let up our supplies to the sites.
Deepak Verma
Okay, got it. One more small question. What would be our average cost of debt long term and short term Separately.
Hitesh Agarwal
It’S lesser than 8 and a half percent.
Deepak Verma
Which one long term?
Hitesh Agarwal
Both. Both. Rate of interest is same basically for both long term and short term.
Deepak Verma
All right. And Hitesh, can I email you separately for some segmental data?
Hitesh Agarwal
That I’ll do. Thank you so much.
Deepak Verma
Thank you.
operator
Thank you. The next question is from the line of Manan Madlani from Kamayakya Wealth Management. Please go ahead.
Manan Madlani
Thanks for the follow up. So when I see the PPT. So in FY25 our employees stand at 700 plus versus 500 plus last year. So where did this addition happen?
Hitesh Agarwal
We had started our manufacturing factory in Bangalore for the fluted and profit. So that a major addition is in that plant only.
Manan Madlani
Okay. And for the fluted panels we did 44 crore this year. So why do you see this segment in next two to three years my when you know we should reach 100 crore mark.
Hitesh Agarwal
Hundred crore mark? Yes. Our plan is to do IT in within two years. Next two years maybe. Or you can take it two to three years. We will achieve take this segment to 100 crore level.
Manan Madlani
Okay. The topic we just started in H2 so there. There won’t be any big number from that segment. Right.
Hitesh Agarwal
Both are mixed. Basically because the application is same as you. May I mentioned in the previous call. Also it’s related to the false ceiling and wall paneling. So one is the multi layer solution and second one is the single layer solution. So response for the fluid. That’s also good.
Manan Madlani
Okay, one last question. Any plan from your site to hire a you know brand ambassador for any of your particular brand or any. Any particular. Any you know brand activity to promote.
Hitesh Agarwal
Not anything going and not. There is no plan for hiring any specific brand ambassador. But yes, to promote our product and to be visible to everyone. Our focus is on more and more participation through exhibitions and source.
Manan Madlani
Okay. Any ballpark number how much we will be spending in a year?
Hitesh Agarwal
Yeah. See last year we have spent around 1.4% of our overall revenue on the exhibition and sales promotion activities and we plan to take it to the 2% of top line.
Manan Madlani
Okay, so this will include all the other activities as well, not just the acquisition part.
Hitesh Agarwal
Yes, later to the exhibition participations and other sales promotion related activities through digital media and other funds.
Manan Madlani
Okay, fair enough. That’s it for myself. Thank you so much and I wish you all the best.
Hitesh Agarwal
Thank you.
operator
Thank you. We’ll take the next question from the line of Ajay Shantaram Kale, a retail investor. Please go ahead.
Ajay Shantaram Kale
Yeah. Hi sir, my question to you is what is the percentage of your revenue between your distribution and your project order and how is margin get splitted between distribution and the back to back orders? And also what are the. I know in bit synthesis you have given the answers of how you’re going to achieve the revenue. But I wanted to understand a specific initiative which will translate to that 25% growth. And if you could just add an element of, you know, your distribution split between southwest, east and north that will also help.
Hitesh Agarwal
So far the revenue mix is concerned related to the B2B and other sales verticals. Around 60% revenue comes from our B2B business channel basically majorly for the PVC profiles and then remaining from the modular furniture and around 30% comes from the project related business. Basically project related business is for the UPVC and aluminum windows and doors and the and modular furniture. And for that particular project related business we are having the order book of around 140 crores in hand. Because B2B business does not carry any order book. It’s a regular supplies from 0 to 7 days.
We are executing the orders and all we are having a small portion of Exports also around 2 and a half percent is for the export for the modular furniture and PVC related products. And around 7% is the retail revenue which is primarily for the UPVC windows and doors and modular furniture. So this is the revenue mix and the second question was related to the revenue. How we are going to generate the revenue for the.
Ajay Shantaram Kale
What are the, what are the specific, what are the specific initiatives that you’re going to take which will allow you to take a growth of 25%.
Hitesh Agarwal
See we are regularly as you our ambition also mentioned that last year we have increased our expenses on the marketing front. In fact it’s not the expenses, it’s about the initiative. We have taken up the initiative to go aggressively in the participation of the exhibitions Penn India, whether it is in the south or north or east, everywhere we are participating in that. So that Is the one front where we are doing the promotional promoting the products. Second one is the healthy order book is supporting our projections. This order booking is being analyzed based on the site current site scenario, how much execution can be done in the current financial year.
So considering all those sectors this figures is derived that around 25% growth can be achieved.
Ajay Shantaram Kale
But are you adding any sales force at a ground level in order because.
Hitesh Agarwal
Yeah, yes, that is also. That is also happening. We have also mentioned in our presentation. So regular recruitments are happening. In fact in last year also we have added more than 15 heads in sales front.
Ajay Shantaram Kale
Okay, and the last question, this is what is your mix between south west, east and north of overall your business teams?
Hitesh Agarwal
South is the major contributory because being a coastal world that acceptance for the more substitute solution particularly the polymer based product is more from the south India. So we can say around 40% revenue is coming from the south India itself. And then the major market after south India is the eastern part, that west Mongol Odisha region. So.
Ajay Shantaram Kale
So which means west and east is specifically west is lesser penetrated in terms of your business.
Hitesh Agarwal
Yeah, this is a lesser penetrated. In fact we mentioned earlier also that Mumbai region earlier we used to do very good business over there. But last two years, in fact last year itself we have opened our depot and showroom in Mumbai to cover up getting more revenue from the Maharashtra regions.
Ajay Shantaram Kale
Okay, thanks. Is it okay if I just drop in you know an email for you know, some follow up questions related?
Hitesh Agarwal
Yeah, sure sir.
Ajay Shantaram Kale
Okay. Yes, thank you. Yeah, thank you.
operator
Thank you. Participants, you may please press star and one to ask questions. Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Mr. Digvich Dhabria for closing comments. Thank you. And over to you sir.
Digvijay Dhabriya
Thank you all for joining us on today’s earning call. We hope we have addressed your questions effectively. Should you have any further queries or require additional information about the company, please feel free to connect with our investor relations team at XB4 Advisory. Thank you once again and we wish you good health and safety.
operator
Thank you members of the management, on behalf of Tabria Plywood Ltd. That concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you.
Hitesh Agarwal
Thank you.