Pyramid Technoplast Ltd (NSE: PYRAMID) Q4 2025 Earnings Call dated May. 27, 2025
Corporate Participants:
Unidentified Speaker
Jaiprakash Agarwal — Whole Time Director & Chief Financial Officer
Analysts:
Unidentified Participant
Presentation:
operator
How are you? Okay. We’ll wait for another two minutes. Right? We have two minutes. Yes. This meeting is being recorded. Hello everyone and a very good afternoon. I welcome you all to Pyramid techno Class Limited’s Q4 and FY25 con call. Please note that the discussion on today’s call may include certain forward looking statements and must be therefore viewed in conjunction with the risk the company faces. We have on call today Mr. Vijay Kumar Agarwal who is the Managing Director. Mr. Jay Prakash Agarwal, CFO and the whole time Director. I would now like to hand over the call to Jay sir to proceed with the opening remarks post which we’ll open the floor for Q and A.
Thank you. And over to you, sir.
Jaiprakash Agarwal — Whole Time Director & Chief Financial Officer
Thank you. Very good afternoon everyone and thanks for joining for the con call today. Now it is our pleasure to share the progress we have made in Q4FY25 as we continue to execute our story. Growth story this quarter saw some robust performance across all segments. Despite a dynamic market environment, we have maintained strong growth momentum. Our commitment to increase operational efficiency, enhancing product mix and scaling capacities has positioned us well for long term sustainable growth. We remain confident in the scalability of our business model. After establishing a strong foothold in Gujarat, now we are expanding our production capacity across all categories in Maharashtra.
Including polymer drum, including polymer drums iv. Can you hear me guys? Yeah.
Unidentified Speaker
Now continue please.
Jaiprakash Agarwal — Whole Time Director & Chief Financial Officer
Okay. So with our backward integration approach with in house manufacturing of our products like cap lids and many other items and which is going to increase in future also not only keep our cost in check but also ensures better quality and faster turnaround. And with our strategic location near key industrial hubs supported by our in house fleet by more than 80 vehicles, we are well positioned to ensure timely deliveries, cost efficiency and customer centric approach. So now coming up with segment wise performance. Now Ms. Drums. Our Ms. Drums segment delivered a solid performance with 35% year on year volume growth and 27% revenue growth.
Trial runs are currently underway for our expanded capacity of 90,000 units per month. And we are on track to begin commercial output by September 2025. With 90% of manual process already automated, we are expecting this segment to benefit much. Improved margins going on and SDP drums. We saw a healthy uptick in the SDP drum segment this quarter. With 11% year on year volume growth and 6% year on year revenue growth. This was driven by the ramp up across four SDP lines. Three dedicated to 200 liter drums and one for 50 litres. Capacity utilization continues to improve across these lines.
We remain optimistic about delivering even stronger results now coming to IBC as anticipated our IBC segment posted 44% year on volume growth and 30% year on year revenue growth. Importantly, the revenue contribution from IBC rose to 37% up from 31% last quarter. Even in the face of rising competition our second IBC line has now been commissioned and the first line is operating at around 60% capacity utilization laying the groundwork for sustained momentum now the strategic expansions so we remain committed to our long term expansion roadmap with ongoing investment in capacity enhancement with unit 6 MSDump plant we have successfully expanded capacity from 50,000 to 90,000 units per month.
Trial runs are underway which will continue through from June onwards with commercial output expected by September as volumes ramp up margins are set to improve Unit 7 as the new unit been implemented last year IBC segment We have now commissioned our second IBC line with the first one which went live in September 2023 is running at about 60% utilization. This sets up well to meet growing demand in the segment SDP segment We wrapped up the civil line in December 2024 only now active across four SDP drums lines for 200 liter capacity and one for 50 liter capacity.
This gives us a solid incoming quarter now coming up to new unit so we are gearing up to commence operations under phase one and here is how things are shaping up so SDP drum so we are setting up 50 liter trials are currently underway with commercial supplies expected to begin by NC Line 1 installation is in progress we are targeting commercial supplies output by end of next month. Metal drums production is expected to go live June July end so and now with coming up to our recycling plant so we’ll be the first company to set up our plant with approach to offer backward integration so we have acquired already at the land construction so to set up a recycling plan.
Construction is now complete and we are on track to start operations by July August 2025. The total capex including land is estimated to around 8 to 10 crores with a payback period of around 2.5 to 3 years. Along with our scalability we are consciously making efforts to expand our margins like sustainability growth as part of our commitment to sustainability and cost optimization our 15 megawatt captive solar power project is progressing very well with commissioning scheduled in phases starting so now it has already started for implementation so this initiative is expected to reduce annual power cost by around 10 financial now coming up to financial performance so revenue for Q4FY25 172 crores up by 12% quarter on quarter and 28% year on year reflecting continued growth despite the market dynamics.
EBITDA stood at 12.1 crore with a margin of 7%. We believe that benefits of economies of scale cost optimization will start reflecting in the coming quarters. Net profit of Q4FY25 stood at 6.7 crore. Margins saw some contraction in Q4 primarily due to a rise in other expenses driven by scaling operations and EPR related expenses. However, as we ramp up operations and push forward with our expansion plan, this temporary uptick in cost is a natural step toward building long term capacity and driving sustainability growth. So our balance sheet remains healthy as always with net debt to equity is 0.20x.
With ongoing expansion and strategic investment, we are well positioned for the future. The completion of new capacity sustainability initiatives and backward integration will drive efficiency and profitability as we scale operations. We remain committed to deliver consistent growth and value for our stakeholders. And we have also announced dividend to our shareholder as committed earlier. So now we are open with the questions and answers. I would request everybody to start one by one question answers.
Questions and Answers:
operator
Thank you sir. We’ll begin with the Q and A session and request the audience to please raise your hand before asking the questions. Okay. So the first question is from Mr. Dipesh Sancheti. Please begin with your question, sir.
Unidentified Participant
Hello. So just wanted to know what is the volume growth this time? Because sales growth almost. Almost 10%. And this quarter the sales growth was good. But what about the volume growth and segment wise volume growth? It will be great.
Unidentified Speaker
Msgram is around 35% volume growth year on year. SDP drum is around 11%. IBC is 44.
Unidentified Participant
IBC is 44%. Okay. And margins have been lower because of.
Jaiprakash Agarwal
But this is temporary because as we scale up production Jesse as a Mari capacity.
Unidentified Speaker
Okay. That is okay. Generally H2FY26.
Jaiprakash Agarwal
For polymer run. So June onwards we’ll get a sale of some portion of sales from VADA unit also in the next quarter. Okay. Power cost reduction. We start carrying a five second week May power supply. Next quarter. Right. And FY26 internal. Great.
Unidentified Participant
Great sir. Great. Congratulations on the good volume growth, sir. And if there are any other questions, I’ll fall back in line. Thank you.
Jaiprakash Agarwal
Thank you.
operator
Thank you sir. Next up we have Saket Kapoor. Please go ahead with your question, sir.
Jaiprakash Agarwal
So raw material priced upward trend, revenue increase effect cost of material consumption infrastructure. Ready. So this. This. This financial year our target is to improve order improve on bottom line. Also we have already taken many initiatives like backward integration plus utilization of all the production capacity across the segment plus solar implementation. And we are coming up with our own recycling plant. So all together it will definitely help in improving all the including top line and bottom line. So now we will get start. We will start getting results from coming quarters. But surely we’ll start getting for this financial year margin improvement.
It will definitely improve on from the last quarter. But full fledged coming quarter onwards for only polymer drums across all segments.
operator
Thank you sir. Next in line we have Natic Mohata. Kindly unmute yourself.
Unidentified Participant
Good afternoon sir and thank you for the opportunity. So my first question is what is our current utilization level across all our units? Sorry, almost 100 used. Okay. Also sir, this unit 8 which we have recently commissioned. So when are we expecting. Productions? 100 utilization. Production. So I think there is some disturbance. But I think you said the product.
operator
Request to please mute yourself.
Jaiprakash Agarwal
Yes. So I understood that you said key when the production will commence. In three months we can get up to optimum utilization level. How much revenue can it do? Okay. Okay.
Unidentified Participant
Thank you sir. That was very helpful.
operator
Thank you sir. Next in line we have Ashwath Rajan. Please go ahead with your question sir.
Unidentified Participant
Am I audible?
Jaiprakash Agarwal
Yes.
Unidentified Participant
Hello sir. So first question is in line with Joe 1.5 cr EPR liability that we have on so for on Q4 how do you see this margins normalizing EPR. Liability for on Q4 for me. So as an end customers are getting registered on the EPR because government has mandate mandate that manufacturers and user has to get registered on the portal. So slowly and gradually customers are getting registered so our liabilities are getting transferred. So this is gonna. This is across all the manufacturers. It is not with us only. So this is what we are continuously chasing customer. We are educating customers who doesn’t know about this. Got it. In terms of margins do we see stabilizing margins? Capex Kara Survival bottom line may or could transport either things are going to be other expense for bad margins. It will be more or less similar. It will increase only incoming.
Unidentified Participant
Okay, got it. And another question is, I mean with your upcoming plan to Joe Unit 9 Do you anticipate any material reduction in the EPR liability over the next three years?
Unidentified Speaker
Don’t come home.
Unidentified Participant
Okay sir. Got it. Thank you. Thank you for the.
operator
Thank you sir. Request all the other participants to please mute yourselves to avoid noise and disturbance. Okay. Next we have Shweta. Ma’ am, please go ahead with your question. Hi. Thank you. Am I audible? Yes, you are.
Unidentified Participant
Yeah. So. Recycling plant to. Advantage Ogaska Drum or YIBC joby material data.
operator
Price wise margin. Okay. So thank you so much. Thank you, ma’ am. Next we have Majid Ahmed. So please go ahead with your question.
Unidentified Participant
I’m audible, sir. Can you hear me, sir?
Unidentified Speaker
Yes, sir.
Jaiprakash Agarwal
You’re audible. Yes.
Unidentified Participant
Okay. Thank you for the opportunity. So my first question sir is what is your going for capacity utilization going for? Because when I see the capacity utilization for polymer drum it is 75%. For Ms. Drums it is 69 and IBC it is 61. Right. And going forward you’re going to increase volume in each segment with 20, 35, 50 and. But your revenue growth, you’re showing only 15 to 20%. Is it because of the realization compression or what is it going forward? 75%, 80%, 60. 70%. But the realization would it increase or would it remain the same for next year? No, it will increase.
The realization will increase. As we utilize the production capacity higher, the realization will increase. But sir, when you’re showing that. You’re showing it overall. When I see the volume is higher for FY26. But your revenue growth position for FY26 much lesser than that. You’re showing 15 to 20. I’m not able to understand why is the reason there’s a figures which are very conservative figures we have added. We don’t want to put very large figures. So that is why we have been very conservative in our approach. Thank you all the very good.
operator
Thank you. Sir, request all the participants to please raise your hand for questions. Next in line we have J. Wankaria. Sir, please go ahead. Sir, you’re not audible. You need to unmute yourself. Sir. Hello. Sir, you’re on mute right now. I’ll take up the next question as of now. Sir, please go ahead with your question.
Unidentified Participant
Hello sir, am I audible? Many business, maybe permit sale but. So we have taken limits. But we will utilize and as and when required.
Unidentified Speaker
Okay. For FY26.
Unidentified Participant
Thank you.
operator
Thank you, sir. Next up we have Dipesh Sancheti. Please go ahead with your question, sir.
Unidentified Participant
Yes, sir. Am I audible? Sir, a couple of questions. Conversion price I think last few is Barbie with. Okay. Recycling plant active. So you said that 10 rupees per kilogram. 20 rupees 30 rupees. Only man beast percent abuse government notes. Recycling. Right. But it is a total and it is. It is. It will give a lot of opportunities.
Jaiprakash Agarwal
Okay. Overall sales. Okay. Raw material prices. 90 rupees cash. Okay. So steady. So how is the raw material prices linked to crude? Is it linked to crude recycling plant. July August. It is a fully automatic Automatic plant. We just need to fit material. And we’ll get a finished product in hand. Is already done. So now it will start commissioning in next month onwards. All that infrastructure is set. Discussion with all major major customers. I myself is looking after this. Already been now we have started marketing on this with customers. So I’m sure that things will in custom. Many customers will start getting on board with this product. So the customers EPR liability.
Unidentified Participant
What will. What will happen to that liability as soon as they give you the raw. Material Interested customer liability.
Unidentified Speaker
Right. And kidney percentage 5 to 10%. Right. Okay. Okay. And okay. Okay. Great Sir. Thank you so much.
operator
Thank you sir. Next we have Naman Bansali. So please go ahead with your question.
Unidentified Participant
All right sir. Thank you for the opportunity. So first question to pricing in terms of. There are multiple other players who have similar type of products in IBC and all. But still the market is majorly duopoly. So it’s me Overall competition can come up with pricing pressure to us servicing significantly different pricing competition.
Unidentified Speaker
Service quality market share. Milta is not growth quarter to quarter Hora quality data.
Unidentified Participant
Okay sir. And second question is scale up. So it’s no operational risk in terms of scale up of these facility operational side.
Jaiprakash Agarwal
Operational. We were selling many IBC product pan India. So we will shift some IBC business. Maharashtra customer. We will onboard new customers. So we don’t look any challenges coming up. It is a win win situation for customers and for us also both.
Unidentified Participant
Okay thank you.
operator
Next question we have from Saket Kapoor. So please go ahead with your question.
Unidentified Participant
For this current financial year Implementation benefits efficiency and volume. The growth. Okay sir or bottom line improve bott gross profits are a solar percent volume or efficiency. Consider saving level electricity savings. Kai Rayga impact market May Abi competition major player and all demand supply. We are the few major players of Ms. Drum in the market. So we are expanding our capacity. We see a lot of growth coming up in that segment also. So we don’t want to leave that opportunity untouched. So we have been ramping up our capacity. Semi automatic a fully automization. So it will help us improve our top line and bottom line both.
And we see a very lot of scope coming up in natural Drum market. Kitna grow Kara or ham Kitna competition market share Banara. Participation.
operator
Thank you sir. Next question we have from Ankit Kanodia. Please go ahead with your question.
Unidentified Participant
Yeah. Thank you sir. Sir basically volume growth dependent chemical companies or IBC 8 ton say beach may use or beast. Galath.
Unidentified Speaker
Market. Bhattasakte market or Hamlok Kistrakte. Thank you. Exactly right. Let product SI chemicals, IBC mainly export. Me Jatiya local domestic. Both come quarter to quarter.
Unidentified Participant
Yes.
Unidentified Speaker
Yes, sir.
Unidentified Participant
Pricing right.
Unidentified Speaker
Service quality. Right.
Unidentified Participant
Right. Right.
Unidentified Speaker
So sir, service quality presentation all over Pan India basis compared to competitors. So plus we are one step ahead with our competition. We have been adding products. We have been adding product mix, a customer, all product range, egg basket. Plus we are coming up with recycling which is a demand of which is a current demand. Our customers also want us a good reputed supplier to come up with the facility. So we are always step ahead. And we want to become a role model for others. So this is what we have been taking ahead. And we would like to be a very a large supplier who a manufacturer in India.
This is what this was very helpful, sir.
Unidentified Participant
Export basically up on chemical companies. Right? Exactly.
Unidentified Speaker
Basically who are the manufacturer or repacking. They are putting their chemical and exporting their products all over the world. Plus we are exporting our pibc. We have appointed several and they have been kind enough and.
Unidentified Participant
Got it.
operator
Yeah. Thank you, sir. Next in line we have Divakar Rana. Please go ahead with your question.
Unidentified Participant
Sir. We do give customers and as and when required.
Unidentified Speaker
Thank you.
operator
Thank you, sir. Next question we have from Rishi Kotari. Please go ahead with your question.
Unidentified Participant
Hello.
Jaiprakash Agarwal
Yes, sir.
Unidentified Participant
Thank you so much for the opportunity. I had two questions that I have to ask. What’s the current overall utilization rate across all units? If at all. If I see on a combined basis. And what would be the optimal utilization across new capacities? Eventually let’s say when the plants are ready.
Jaiprakash Agarwal
70% utilization on a combined. Combined. If you see the combined it is around 75. 70% including all categories. And if I tell you segment wise it is a polymer drum it is more than 75%. And IPCs it is around 65%. And then metal drum it is right now it is around 60. But eventually it will come up. As in the machine will get installation will get completed. And for this bada, the Maharashtra unit the first year we 30. 40. So overall capacity we see around 30. 35% capacity utilization in this first year. First this financial year.
Unidentified Participant
Okay.
Jaiprakash Agarwal
And by second year we will complete more than that. Any number is 60. 30%. Just to give it a number, it is around 60. 70 crore. 70 crore. We are seeing looking on the in terms of revenue 7200crores from our Maharashtra unit.
Unidentified Participant
Okay. Got it. And okay. The other question being in terms of automation nearing 90% in the Ms. Jump segment. How do we. And we Further enhancing manufacturing efficiency across other product lines. In terms of, you know, reasonable will the manufacturer efficiency eventually be seen in other segment for our business or not?
Jaiprakash Agarwal
We. So for polymer drums we have already utilized utility. It is. We have been utilizing optimal capacity like the. The most optimal way we are producing that metal polymer drums. IBC is also. We have already automized everything and we have been utilizing capacity as for that. So we have been doing R and D every time and we are increasing the capacity for metal drums. We saw a scope of 100 the utilization, how to increase the utilization. So that is what we are doing it right now. And it will definitely improve by 80, 85% more than that in fact.
So in coming quarters maybe next quarter onwards, you will see a definitely in further improve in capacity of Ms. Drums. And by that time we’ll give you a good news about VADA also.
Unidentified Participant
But just adding on to that this type of automation on our different segments, will it even you know, give us a good cost optimization of cost efficiency per se in our product line?
Jaiprakash Agarwal
Yes, yes, definitely. By utilizing by. By making further more optimization, we will definitely get cost reduction in terms of terms of more output, less labor and everything.
Unidentified Participant
So just to give any sort of percentage increase, incremental increase in the margin front EBITDA level, what should be the increment change we see probably next in 1, 2, 3 years. Of course we right now anyway running at 78% EBITDA level. But there was a time that we were running at around 1112 years for. The EBITDA more than 10% in coming this financial year. So hopefully we are on top of that 10 level. Correct? Correct, Absolutely.
Jaiprakash Agarwal
And this will be purely because of the cost efficiency in the product line. It will not only cost efficiency, it will. We will have a. We are. I’m. I’m expecting it the cost optimization plus we will get a reduction from power saving coming up. So all together I’ve been very. It’s, it’s. It’s a very conservative. So we are targeting this financial year it is up to more than upward of 10%. So eventually we can see ourselves achieving the past ebitda levels of 12%. Upward of 10%. I’m not taking any figure as of. Now two, three years down the line. We can see that to achieve the same that we used to have before. That we need to utilize the entire capacity also. So we are on track to utilize the capacity of of all the units. So as and as we start getting utilization, we’ll definitely improve on EBITDA level.
Unidentified Participant
Okay. Thank you so much for the question. And turn back to.
operator
Thank you sir. Request all the participants to please restrict your questions to two questions each. Next in line we have Ganesh Nagar Sekhar. So please go ahead with your question.
Unidentified Participant
Hello sir, due to the automation margins improve hora and I think earlier upna margins used to be around say 6 to 5 to 6%. That is going to 8 to 9%. So is that increase happening in FY26 itself? Yeah. Will it take a few years to get to that 8 to 9% figure? How hard is that for a competitor to replicate? Okay, okay. Okay. Thank you sir.
operator
Thank you sir. Next question we have from Kush Bantia. Please go ahead with your question, sir.
Unidentified Participant
Hi. Thanks for the opportunity. So my main question to the management is like what is the major reason why our margins are lagging much behind than our competitors? Because. And sir, second question is on our. Recycling plant Capex plant unit seven automation unit six Char plant you need six car Capex well margin come. Okay sir. And another question is on the recycling plant. So when we are expecting it to start contributing to our top line from FY26 September FY26. Okay.
Jaiprakash Agarwal
And will it help to boost our margins? Or will it have same margins as existing business? Or will it have better margins? Last question is even. Even our closest competitors are also been able to grow at around 15 annually. So do we have plans to outpace them? How will we are going to outpace them? Okay so. So what I get from your answer is we already have demand from our existing customers. More demand. So we are not able to fulfill it right now with us because we are already at 100 utilization. Okay, thank you.
operator
Thank you sir. Next in line we have Saket Kapoor. Please go ahead with your question sir.
Unidentified Participant
Concluding question. Volume addition Ah. Okay. Cash flow may work in progress. Sorry. Balance sheet work in progress. Capitalize closing capital work in progress. Overall depreciation number seek or pending Agaratha team say Bhatkargit allow Kijay Gasar in case Megba presentation the Vara Dekna Chong closing Mr. Continuous Kai Sari companies so Sabi results Go Dekna or time for short so yay current Rathai participation when it’s to be better participation but overcrowding.
operator
Thank you sir. Next question we have from Dipesh Sancheti.
Unidentified Participant
Sir. FY26 or recycling plant Kalia Are we going to go international? Also mean completely Salma reprocessed planting Marastagawada plant. No comments.
Unidentified Speaker
Okay sir, I take that. Do you think the sales growth will Come from Capex only or will it come from better efficiency? I mean where do you see sales growth coming from? It will add up. See we are already running at 75, 80% in polymer drums, IBCs. We are running up. And I put full utilization metal drum. We have certain scope coming up. We have already explained. So now whatever. Whatever extra sale will come. So two factors. Either we add machines. That’s what we are already doing it. Plus if the prices will increase. So for that we are ready in both the. Both the way. So increasing the capacity. We are already doing it. Prices increase. So we will definitely get the advantage of that.
Unidentified Participant
Right? And just wanted to know how big is Maharashtra land? It is around 10 acres. 10 acres plus 2.5 acres which you have recently acquired or. No, no. 10 acres. And. What is the acquisition cost? If you can tell me. Per acre.
Unidentified Speaker
10 crore. 10 and a half crores. Cash. Okay. Okay. Because the prices have increased significantly. We are focusing on our unit right now. We have to focus on all the balance sheet as well as everything. Anyways, all the very best sir. I think I’m done with my questions. But all the very best and hope to see you soon. Thank you.
operator
Thank you sir. Next question we have from J. Venkaria. So please go ahead with your question. Okay. Thank you. Yeah. Yeah. Thanks. Thanks. Thank you sir. We’ll wait for another one minute. If participants have any questions you all can raise your hand. Yes sir. Please go ahead. We have next question from Kushbantia. Please go ahead.
Unidentified Participant
I missed one number. So at peak utilization how much Marasha plant can add to the top line?
Jaiprakash Agarwal
200 crores. Infrastructure is ready. The demand area will add up.
Unidentified Participant
Okay so. And in first year we are targeting around 30% utilization.
Jaiprakash Agarwal
70 to 100.
Unidentified Participant
Okay. Okay. Thank you sir.
operator
Thank you sir. I think we are done with our questions. Thank you Vijay sir. Thank you J sir for your time. And thanks to all the participants as well.
Unidentified Participant
Let me take. Let me just add on some last speech. So I’ll. I’ll thank you all the participants. Thanks for joining. Thanks for asking questions. Thanks for correcting us. And I’ll tell you so we have been focusing on past few years on the Capex to increase the capacity. So we have infrastructure is ready. So this year we’ll definitely see a lot of growth coming up from the top line. And for the bottom line this year we. This financial year we have been targeting to increase our bottom line also. And we have taken many initiatives. And definitely in coming quarters it will start giving.
And definitely when. When we next join on the con call, I’ll see asking you this question that how this increased. So thanks for joining and hopefully to see you again. Thank you so much.
operator
Thank you, sir. Thanks everyone.
Jaiprakash Agarwal
Thank you. We’ll close this session now. Yes, sir. Goodbye.