Duroply Industries Ltd (NSE: DUROPLY) Q4 2025 Earnings Call dated May. 15, 2025
Corporate Participants:
Akhilesh Chitlangia — Managing Director & Chief Executive Officer
Vijay Kumar Yadav — General Manager, Accounts & Finance
Analysts:
Vaibhav Pachisia — Analyst
Mahesh Attal — Analyst
Resha Mehta — Analyst
Sagnik Sarkar — Analyst
Moksh Ranka — Analyst
Presentation:
Vaibhav Pachisia — Analyst
Good morning, ladies and gentlemen.
On behalf of Duroply Industries Limited and SKP Securities, it’s my pleasure to welcome you to Duroply’s Q4 FY ’25 and FY ’25 Results Webinar. We have with us Mr. Akhilesh Chitlangia, MD and CEO; and Mr. Vijay Kumar Yadav, GM, Accounts and Finance.
This webinar is being recorded for compliance reasons. And during the discussion, there may be certain forward-looking statements. These must be taken in conjunction with the risks that the company faces. We’ll have the management opening remarks and the presentation, followed by a Q&A session.
Thank you, and over to you, Mr. Chitlangia.
Akhilesh Chitlangia — Managing Director & Chief Executive Officer
Thank you, Vaibhav, and good morning to everyone, and thank you for attending our earnings webinar for the fourth quarter and year ended FY ’25.
On this call, I’m joined by Mr. Vijay Kumar Yadav, who has recently been promoted to the CFO of our company post the confirmation by the Board of Directors in our last Board meeting held on the 13th of May. Duroply was founded in 1957, and over the years has built a strong brand in the industry and is recognized across the country for its high standard of quality, which we have maintained over the years. Duroply this year celebrated its 68th year in operation, and we are proud to have played a meaningful part in India’s growth story over the last 6 decades.
On the business front, we are pleased to inform that Duroply crossed the INR100 crore quarterly benchmark for the first time, closing the fourth quarter revenue at INR106.35 crores. This marks a 25.9% growth for the company over the same period last year and an 18.4% growth on a Q-on-Q basis. The business overall reported a profit before tax of INR3.25 crores for the quarter, including a onetime exceptional income of INR1.04 crores. For the quarter, revenue from in-house manufactured goods stood at INR59.7 crores, which is a 19% growth on a year-on-year basis and a 10% growth on a quarter-on-quarter basis.
Revenue from contract manufacturing stood at INR46.6 crores, a 36% growth on a year-on-year basis and a 32% growth on a quarter-on-quarter basis. The gross margins saw an improvement this quarter as well. It stood at 34.9% as compared to 33.1% for the same quarter last year and 34.2% for the previous quarter. The improvement was on account of improvement in our raw material costs as well as a more favorable product mix. Our EBITDA margin for the quarter stood at INR5.42 crores, a 275% increase from the same quarter last year and a 24% growth over the same quarter — over Q3 this year. In margin terms, EBITDA margin stood at 5.4% of sales as compared to 1.4% same quarter last year and 4.9% in Q3 FY ’25.
If we look at for the year FY ’25, revenue stood at INR371.8 crores, up by 15% on a year-on-year basis. Profit before tax adjusted for the exceptional onetime income stood at INR5.81 crores as compared to INR1.01 crores in FY ’24. Revenue from in-house manufactured goods stood at INR220 crores, an increase of 12.3%, and revenue from contract manufacturing stood at INR151 crores, a growth of 19%. Our overall gross margin this year stood at 34.7% as compared to 33.7% last year, and EBITDA margin as a percentage of sales stood at 4.8% as compared to 4% last financial year. On the product mix, the Duro segment, which is a premium offering, had a 12.7% growth rate on a year-on-year basis and a 17.6% growth on a quarter-on-quarter basis.
Our mid-segment brand, Tower also showcased robust growth with a 69% growth on a year-on-year basis and a 21% growth on a quarter-on-quarter basis. For the year, the Duro segment saw an overall growth of 10.5% and Tower had a growth rate of 34.4%. Overall, the last financial year has been quite a challenging one, but we took some aggressive steps in increasing our team strength and investing in a large sales team across India. This initiative, which began at the end of Q2 for us, the results of those are now clearly visible with the performance in the last quarter. Our employee cost for the year stood at 10.6% of sales, which is slightly higher than what it was last year. And we have continued to maintain our investment into our branding and marketing activity with our marketing spend at 3.8% this year.
I now request Vijay to take you through some of the other financial metrics.
Vijay Kumar Yadav — General Manager, Accounts & Finance
Thank you, and good morning to everyone.
Let me take you through some of the key financials from last year. For the financial year, gross margin stood at 34.7% as compared to 33.7% in the last financial year ’24. Employee costs stood at 10.4% of sales in the previous year ’25 as compared to 10% in FY ’24. Marketing expense stood at 3.8% of the sales as compared to 4.3% of sales in the last financial year ’24. We saw an improvement in our financial and interest costs. It stood at 2% of sales in FY ’25 as compared to 2.5% of the sales in financial year ’24.
Our debtor days for the year increased to 47 days as compared to 39 days in FY ’24 due to incoming BIS and QC norms, which have been enforced from March ’25. Company invested in FG inventory over the last few months and therefore, the day inventory stood at 165 days of consumption as compared to 149 days of consumption in the previous year. We expect it to gradually reduce in coming quarters. Credit days stood at 117 days of consumption. As a result, cash conversion cycle stood at 94 days of FY ’25.
Thank you from my side. Mr. Akhilesh will further take over.
Akhilesh Chitlangia — Managing Director & Chief Executive Officer
Thank you, Vijay.
So the past financial year, we saw a lot of — we had a significant infusion in equity. And earlier in the year, we had given a guidance that we would have a mid to high teens growth rate. We are pleased to have closed this year with a 15% growth rate, but FY ’25 overall posed significant challenges with demand being soft and also our industry saw raw material cost escalation, especially during the middle part of the year. The aggressive growth steps that we have taken this year have started bearing results for us, which is clearly reflected in our fourth quarter top line growth and margin improvement. I think for the coming year, we expect that our growth should be stronger and our margins to also further improve.
With that, Vaibhav, I think we should open the floor to questions, please.
Questions and Answers:
Vaibhav Pachisia
[Operator Instructions] We’ll take the first question from the line of Mahesh Attal.
Mahesh Attal
Akhilesh, just want your perspective on what’s the percentage of our advertisement expense to the sales that we have done? So my further question on that would be, which are the states where our advertisement expenses is being done like very aggressively. Like I could see that in the southern parts of India, you have been going very aggressive on advertisement. So, I mean, what is the management’s perspective about that? And when do you see the numbers coming up after this thing?
Akhilesh Chitlangia
Sure, Mahesh. Thank you for that question. Our ad spend for this year stood at 3.8% of sales. This includes brand promotion activities as well as spend on our influencer program.
Mahesh Attal
Sorry to interrupt, can you give me an absolute number for that?
Akhilesh Chitlangia
Sure. About INR14-odd crores. So that’s where we stood on our marketing spend. Where we are spending money? Mahesh, over 60% of our revenue comes from North India. So we continue to invest very aggressively in North India, because this is our stronghold, and we are considered one of the brand leaders in this part of the country. But beyond that, I think South and West India, we’ve chosen pockets of South and West India, which I would not like to disclose specifically which pockets, but we have chosen certain pockets in South and West India, where we are being very aggressive on our marketing spend as well as building up our sales force to serve our customers better. And I think we will be doing more of focused working in a few markets, developing them, bringing them to a particular level and then shifting our focus to another few markets.
Mahesh Attal
Great, Akhilesh. Akhilesh, first thing is that — fine. My follow-up question would be more on certain markets being getting matured for us. Do you see certain markets like you said that you’re entering into South and West? What time line should we take for these markets to reach what you have shown in the North region? Or maybe are you seeing the green shoots coming up, or after doing all the advertisement that we have done over the last year, are you seeing something happening there? That is my first question.
And then I would also like you to throw some light on the products profile from our in-house manufacturing. Any new products that we have added, because I could see that interior designing space is an always changing space. There are new products that are being taken up by the designers like fluted panel is one thing. You have now ceiling fluted panels and all these things. So what are we doing on that part? Like any new product line that we have introduced that could be like where you are seeing some great numbers coming. I mean, you could see the visibility or green shoots happening.
Akhilesh Chitlangia
Sure. I’ll take both the questions. The first part is when do we see — if I heard you correct, it was when do we see the other parts of the country becoming as strong for us as it is in North India. See, North India, we’ve been a brand leader for over 60 years. So there is an inherent brand equity that exists. We do have some equity in other parts of the country, but the journey is not going to be completed over 1 or 2 or 3 quarters of brand investment. It’s going to take a little longer than that. The core focus for us is on our channel and influencer network expansion. And we expect at least 2 to 3 years before we start becoming what we call a significant player in that zone. It takes a lot of time to build that scale and have the stickiness of the brand develop.
But the offshoots are strong, which is clearly reflected in our fourth quarter numbers. We started investing from Q2, Q3 onwards. And I think we have a strong acceptance of our product in the market. The dealers, the channel, the influencers trust the quality of the product that we give. And with more and more touch points being added, I think we just go from strength to strength. Now regarding new product extension or introduction of new products, we did introduce 10-feet plywood 2 years ago and then fluted panel veneer sheets about a year ago. But beyond that, we are not looking at any major product line expansion right now, just basic innovation over the existing product lines. And that is going to be our core focus. Our focus right now is with the existing product mix to significantly grow our revenue.
Mahesh Attal
Great. So any guidance on the marketing spend for the next year?
Akhilesh Chitlangia
It will still be in this range from 3.5% to 4%.
Vaibhav Pachisia
I’ll take the next question from the line of Resha Mehta.
Resha Mehta
So Akhilesh, I’m fairly new to the company. So probably my questions would be a little bit more basic. But one, I wanted to understand that it’s been a good growth that we have seen in the Q4. So what has driven this growth, number one? And who typically are our customers? How much is B2B? I do see a couple of customers in your presentation, right? But how much is retail, how much is B2B? What does that do to our margins? What are the margins in both these segments? And how is the working capital different across both these customer segments? So that’s my first question.
Akhilesh Chitlangia
Sure. So thank you for that, Resha. We received a fund infusion. We raised equity in March 2024, right towards the end of the year, following which we started investing in our infrastructure. We went ahead and improved our terms of payment with the suppliers, and we started building our sales team from end of Q1, middle of Q2 onwards. The result of this top line growth in the fourth quarter is because of that investment that we started making from August, September onwards in our sales team infrastructure and supply chain. That’s where this growth has largely come from. And I think we expect this growth rate to continue in the coming quarters as well, maybe not as high as what we saw in the fourth quarter, but slightly better than the 15% overall growth that we achieved this year.
Sorry, could you repeat the second part of the question, please?
Resha Mehta
What’s the revenue mix across customers, B2B and the difference in margins in working cap?
Akhilesh Chitlangia
So 95% of our revenue comes from B2B. We have very few institutional customers. So all our margins largely is on B2B sales. We are focused on the homebuyer retail segment. We work with channel partners who serve people who are building basically new homes and want plywood for their home interiors, and also working with the furniture manufacturers. Today, that is the growing segment. But largely, the margins are reasonably similar across both the categories. And that’s where our core focus is. We work with influencers, which are basically contractors and designers who specify and use our material, and they help us generate the demand, which then gets serviced through our channel partners.
Resha Mehta
Sorry, just to reconfirm, 95% revenue is from B2B?
Akhilesh Chitlangia
B2B, yes.
Resha Mehta
Sorry, B2B, meaning these hotels and…
Akhilesh Chitlangia
No, no, no.
Resha Mehta
Dealer channel, right?
Akhilesh Chitlangia
Dealer channel, which then goes into the homebuyer segment. So if someone is renovating their house or building a new home, that is our core target audience.
Resha Mehta
Okay. Got it. So B2B is — okay, so basically, the indirect one is very small. Got it.
Akhilesh Chitlangia
Yes.
Resha Mehta
Right. And working capital would be — the debtor days in both these segments, why…
Akhilesh Chitlangia
See, the direct to customers is negligible. So that actually has no impact on our days of debtors. Our day debtor this quarter actually increased because of the extraordinary growth in sales that we had over the last couple of months actually. Our debtor days typically hovers around the 40 to 42 days of debtors. This time, it’s gone above a little bit over that. And inventory days, we have warehouses across the country, and we try to hold inventory a little bit extra at our end, because as we’re expanding on our channel partners, we need to provide them with services within 24- to 48-hour delivery time lines to them. In addition, our industry has gone through the implementation of the BIS QCO norms. And therefore, strategically, we’ve decided to invest a little bit more on the finished goods inventory prior to the implementation of the QCO norms coming in. And we expect our days inventory to now come down over the next couple of quarters.
Resha Mehta
Okay. So what would be a normalized range for inventory days? I think it’s increased like you mentioned.
Akhilesh Chitlangia
Right. Typically, 120 to 130 days, that’s where the industry average typically hovers around.
Resha Mehta
Right. And debtor days, you said 40 to 42 days is…
Akhilesh Chitlangia
42 to 45 is what our indication would be, slightly on the elevated side right now, but that will come under control very soon.
Resha Mehta
Okay. And in terms of the raw material outlook, right? So there’s been pressure on the input side for quite some time in this segment. So what are your thoughts on that? And how do you see that shaping up over the next couple of months?
Akhilesh Chitlangia
Right. So the raw material, sadly, as an industry, there was not a lot of focus that was there on sustainable plantations, which would form a sustainable source of raw material for our industry and allied industries as well. But that focus came in after the COVID period ended. And the typical timber cycle is 4 to 6 years. So we expect a little softening on the raw material to come in towards the later half of this year. That is our expectation. Typically, the monsoon season sees a little spike, which then normalizes. But we’re expecting that this year should be not as bad as what it was last year, and we might actually see a little bit of the raw material cost softening towards the later half of the year.
Resha Mehta
You mean the calendar year or the financial year?
Akhilesh Chitlangia
Financial year. Sorry, financial year.
Resha Mehta
Financial year. Okay. So you have seen some uptick in your gross margins, right? So there’s been some improvement there. Then what is that attributed to? Is that attributed to product mix or — because you’re saying that timber prices have not yet eased?
Akhilesh Chitlangia
They have started easing. It hasn’t been that significant, but there has been a little easing that has come on the timber prices. Our product mix was also a little better. And we found some efficiencies in our plant and in our procurement processes. So it’s a combination of all 3 that have allowed for the margins to be slightly better. So it’s a combination of all 3.
Resha Mehta
Okay. And the other thing, if you could just elaborate on your product mix. So how much of it is from — how much of your revenues is from ply? And then I think you also started with veneer, and to the previous participant, you mentioned a few new product launches. And also within ply, how would you classify yourself into, let’s say, economy, mid, or premium?
Akhilesh Chitlangia
Sure. So we have 2 ranges, which is the Duro range and the second, the mid-segment offering, which is the Tower range. Between the 2 brands, so Duro basically comprises of all the premium products, which includes the veneers, doors, and plywood. The Duro range typically accounts currently for 75% of our revenue. Our mid-segment range is about 25% of our revenue, though that is the fastest-growing segment for the company. We started Tower as a brand only 3 years ago, aggressively coming into the market. In a very short span of time, we’ve been able to carve out a reasonably good revenue, and this is where a large part of our growth is coming from.
Resha Mehta
So Tower brand is a mid-segment brand, right?
Akhilesh Chitlangia
Correct. Yes. Yes, 25%.
Resha Mehta
So with that growing faster versus your Duro range, what does that do to our margins?
Akhilesh Chitlangia
The Tower range largely comes from our contract manufacturers. We don’t make that in-house. And so the margin on contract manufacturing today is typically about 22% to 22.5%. And I think that’s reasonably okay for us. And it doesn’t — which has already been factored into our gross margin, which is currently at about 34.7%. We are finding ways of finding more efficiencies in there. And I think as the company grows, scale comes in and our financial position gets even further strengthened, we will see a slight improvement in the gross profit margin on the trading side as well.
Resha Mehta
Right. And what would be the gross margins in our own manufactured Duro range?
Akhilesh Chitlangia
Duro range in-house manufactured is at about 44.5%.
Vaibhav Pachisia
Ms. Mehta, we request you to rejoin the queue as we have other participants as well. We’ll take the next question from the line of Sagnik Sarkar.
Sagnik Sarkar
Congrats on the great set of numbers. So I had just one question on the margins front. So if you look at your margins, so it ranges EBITDA margin around 5%. So just wanted to check like some of your peers have an EBITDA margin range of significantly higher, something around 9%, 10%. So if you could just explain like why is there a difference? And what are the drivers of this?
Akhilesh Chitlangia
Thank you, Mr. Sarkar. So there are a couple of things. We need to look a little bit into the history. A couple of years ago, the company was very financially stressed, and our top line had been stagnant for about 7, 8 years. We had not grown. And thereafter, we infused working capital by way of issuance of fresh equity, and we’ve gone through multiple rounds of that. With that, our assumption or our working was to bolster the infrastructure of the organization, which basically means investments on repairs in the plant machinery as well as opening up new warehouses and investing in our employees and marketing spend, because the brand had not been — our investments in the brand over the years had been quite low.
Therefore, if you see, our employee cost as well as our marketing spend, both are slightly higher than the industry average. In addition, as we are starting to grow now, we expect that there will be better — what do I say, with economies of scale, we should also be able to bring in our cost of procurement slightly lower. This year, we had a little crisis in the industry on the raw material side, as a result of which I think we were unable to meet our expectation of a slightly higher operating margin growth. But I think over the next 2 years, as the company scales and we look to grow in the high teens growth rate, we will see the expansion on the operating margin to come through, but it’s going to take a couple of years for that to happen. But for the coming year, we expect it to be better than what it was the previous year. And every year, we should see it improve.
Sagnik Sarkar
And also, if you could give a guidance regarding the margins maybe 2 years down the line?
Akhilesh Chitlangia
I think 2 years down the line, we should be in the high single digits. That would be something fair to aim for in the range of 8.5% to 9.5% — or 8% to 9% would be what would be, on a conservative basis, what we should be looking at 2 years from now.
Vaibhav Pachisia
We’ll take the next question from the line of Kiran K.R. Since there is no response, I’ll take the next question from the line of Moksh Ranka.
Moksh Ranka
What is the unorganized and organized market share? And you mentioned about the upcoming BIS and QC norms. So does it help the organized business?
Akhilesh Chitlangia
Yes, Mr. Ranka, the unorganized sector is today at approximately 75% market share, which used to be 80%. And as the affluence level in India and disposable income levels in India are increasing, we’re finding that there is a slow but steady shift towards the organized sector. Does the QCO BIS norms help us? Yes, it will help us. A, the level of imports of plywood coming from Southeast Asian countries have started significantly coming down. Traders have hoarded material well into the third quarter and fourth quarter. But I think they will eat through the inventory over the next couple of months. And I think the demand in the second half of the year will — for us, those who manufacture largely in India, we will see that demand increasing further for us towards the second half of the year. That should have a positive impact for us.
Moksh Ranka
Okay. I also wanted to understand how does the change in product mix affect us? For example, there is a trend of value migration from plywood to MDF and other materials. So could you give some color on that?
Akhilesh Chitlangia
Sure. So see, there is — I think the industry is maturing towards the usage of plywood over MDF. I think interiors — taste of interiors and especially the workmanship in interiors, if you speak to the carpenter contractors, they have found a place for using MDF and have found a place for using plywood. I don’t think today, MDF and plywood stand as direct substitute products. I think they’re largely coming to an area where both are going to become complementary or are becoming complementary to each other. Where MDF and allied products have hurt the industry or the plywood industry is on the unorganized sectors, cheap material that used to come into the market, which hasn’t really impacted us that much, and that’s why we’ve been able to grow at 15-odd percent.
The overall plywood industry is expected to grow at about 7.5% to 8% this year. And that’s only possible because there is a lot of demand in the market for good quality plywood. There was a fear that in MDF would eat into plywood, but I don’t think that’s happening. And I’ve spoken about this, I think, in one of my earlier calls as well. There is still a very strong demand for high-quality interiors in India. People, when they build homes, still are looking for woodwork solutions that will last for many, many years. And MDF and its allied products like HDHMR, et cetera, are not giving that level of quality. Where MDF and HDHMR are largely being used is more on properties that are going for rental or the first-time buyers where they don’t have budget to spend on high-quality furniture, but there is a big growth opportunity for plywood that still exists in India.
Moksh Ranka
And could you please help me understand the competitive intensity in our industry, because recently, there was one conglomerate who actually discontinued their plywood business. And there was also one plywood company which went into MDF. So I’m just trying to understand is our business very tough to crack for everybody?
Akhilesh Chitlangia
Getting shelf space with the channel partners is the hard part. That’s where the barrier to entry exists. And that’s why we have very few companies that have scaled beyond a particular size. And that’s also the reason why this industry has seen multiple large players try to enter and have not had a lot of success or have exited. Getting shelf space with good quality channel partners is very difficult. Yes, that’s the barrier to entry.
Vaibhav Pachisia
We can take the next question from the line of Resha Mehta. Resha, do you have further questions?
Resha Mehta
So you did mention about some company history when it was undergoing some stress. So can you just elaborate what time period was this? What exactly happened that made us go into this financial distress? How exactly we came out of this?
Akhilesh Chitlangia
Resha, I won’t go too much into the history, but COVID and just around COVID, and even before that, we had a little bit of stress. But post-COVID, the stress levels had increased, especially after the second COVID. And thereafter, the management decided to correct its balance sheet. We had our first round of fund infusion, which happened in September 2022, when we infused INR28 crores of equity into the company, largely led by the promoter group, investing more than INR17 crores at that point of time, along with some investors that came on board.
And then we have infused a further INR45 crores of — INR44.9 crores of equity, which was announced in March 2024, of which there are some warrants which are pending for conversion, which will happen in the due course in the next few months. So therefore, from a health perspective and balance sheet perspective, we are very strong, and we are very confident of our future and growing rapidly in this business. It’s a legacy company. We’ve been in the industry for 68 years. There have been some ups and downs. And I think in the mid-2000s, from 2015 to 2018, ’19, we just went through a little rough phase. But that’s in the past, and we are well beyond that now.
Resha Mehta
Got it. And on the BIS part, right, so I think you were alluding to some imports from some Asian countries. So typically, ply would be imported from which countries?
Akhilesh Chitlangia
There was ply coming in from Indonesia, Vietnam and a bunch of other countries, which is much cheaper than what was typically produced in India.
Resha Mehta
What would be the differential in terms of landed cost?
Akhilesh Chitlangia
That will be very difficult to ascertain, because there are various qualities of ply that was being imported. So again, across different categories, at least you can imagine 8% to 10% cheaper than what was available in India. And this was largely coming in through traders. And the traders and the unorganized sector is very high in our industry. So with this, I think the major change that’s going to come is that with traders not having access to cheaper plywood materials as easily as what it used to be, some of the shift will come towards the branded and the organized sector.
Resha Mehta
So the BIS norms have kicked in from when? And what is the impact on the imports since then? Have we seen the imports coming down? Or did they dump a lot before the norms kicked in and hence, we are seeing some slowness.
Akhilesh Chitlangia
There was a lot of dumping before the norms kicked in. The norms kicked in from 1st March 2025. And we expect the excess inventory that exists across the industry to normalize by September to October.
Resha Mehta
Okay. And now at least the imports have subsided as we speak?
Akhilesh Chitlangia
Yes, yes, you can’t import. The factory, the plant, from where the material is being exported, needs to be registered with the BIS. The BIS has been giving very few licenses. There are only a few plants that have been given the licenses to export to India as of now. So yes, there’s been a drastic reduction in the amount of material coming into India.
Resha Mehta
And in which countries are these plants, which have been given BIS certification?
Akhilesh Chitlangia
I will not be able to give you that information right now. There are plants across, and I think the BIS will have that data of it. I know a few, but I will not be able to give you a complete picture. So I don’t think I’ll be the right person to answer that.
Resha Mehta
Sure. And in terms of — from the promoter family, who all are actively involved in the business? And would you all have any other active business?
Akhilesh Chitlangia
No. From the promoter side, this is the only active business that we have.
Resha Mehta
And who all are involved?
Akhilesh Chitlangia
I’m the Managing Director, so I’m responsible for the entire operations of the business. And from the family, there’s my uncle, who is the Chairman; and then my brother, who looks after certain new initiatives.
Resha Mehta
Got it. And any capex and debt guidance that you want to put a number to?
Akhilesh Chitlangia
No. We are only doing capex to improve the efficiencies in our plant in Rajkot, which is largely maintenance and debottlenecking and improvement of efficiencies. So those are largely what we’re doing. So there’s no major capex plan as of now in the near horizon.
Resha Mehta
And what would be our utilization levels in the plant?
Akhilesh Chitlangia
Our utilization in the plant is hovering at about 72% to 73% right now. So there is scope to increase the output from there.
Resha Mehta
Right. And last 2 data questions from my side. What was the timber cost in rupee kg or whatever metric you want to put it at for the full year and for Q4?
Akhilesh Chitlangia
Resha, I would not be comfortable to answer that on a public platform. If you would like that level of detail, you could drop us an e-mail and then we can take it up there, please.
Resha Mehta
Sure, sure. And tax rates for next 2 years?
Akhilesh Chitlangia
Vijay, do you want to take that question?
Vijay Kumar Yadav
In terms of income tax act, we are following the new mechanism, hence it will be 25%, and GST 18% of the sale. Any other tax if you want to know, please let us know.
Resha Mehta
I was more referring to the effective tax rate, because if I see for the last 2 years, your taxes have almost been nil because of probably the accumulated losses in the past. So the effective tax rate.
Vijay Kumar Yadav
So accumulated taxes are now nil because all the revenue — profit of the financial year ’25 is being absorbed by the previous unabsorbed depreciation, and we are following the new rate, that is 25%.
Resha Mehta
Okay. So the effective tax rate will also be 25% going ahead is what I can conclude.
Akhilesh Chitlangia
Yes.
Vijay Kumar Yadav
Yes.
Vaibhav Pachisia
We’ll take the next question from Moksh Ranka.
Moksh Ranka
Is it possible to name few competitors which you respect a lot in the industry?
Akhilesh Chitlangia
Moksh, I think everyone is respected and everyone is doing very well in this industry. I don’t think I can name a few and then leave out the rest. I think everyone in the industry is respected from our end.
Moksh Ranka
No, if you had, let’s say, to invest — if you personally wanted to invest in one company which is not yours, which would be you?
Akhilesh Chitlangia
Moksh, for us, it’s only Duroply. I mean, really, we have phenomenal relationships with everyone, and I cannot answer that question. But yes, we have invested 100% of whatever we have to invest into Duroply and our investment would be with Duroply only.
Moksh Ranka
Okay. And regarding our sales mix, we have 95% B2B. And what is that 5% retail? What is like — are we planning to increase our retail share, because I think that would be…
Akhilesh Chitlangia
No. So we are very focused on the B2B2C segment, which is 95%, which is basically from the company to the dealers and then dealers to the homebuyers or the contractors, et cetera. The remaining 5% to 6% is basically we have some institutional customers, with which we’ve had relationships over 25, 30 years, and a couple of furniture manufacturers who we work with on large-scale projects, but that’s about it. And that’s not a segment that we expect to see a lot of growth from.
Vaibhav Pachisia
Thank you. As there are no further questions, I’ll now hand over the webinar to Mr. Chitlangia for his closing remarks.
Akhilesh Chitlangia
Thank you, Vaibhav, and thank you, ladies and gentlemen, for joining us for the fourth quarter FY 2025 earnings call. We strongly believe that we are on the right path. And with many of our initiatives that we have taken last year starting to bear fruits, we expect our growth to continue into the coming year as well. And we look forward to hosting you at the next earnings call. Thank you.
Vaibhav Pachisia
Thank you. On behalf of SKP Securities, thank you very much, Mr. Chitlangia and Mr. Yadav, for taking the time out to interact with investors. We look forward to hosting you again in the next quarterly webinar. Thank you, ladies and gentlemen, for joining us this morning. This now ends the Q4 FY ’25 and FY ’25 results webinar for Duroply.
Akhilesh Chitlangia
Thank you, Mr. Pachisia. Thank you, everyone.