Rashi Peripherals Ltd (NSE: RPTECH) Q4 2025 Earnings Call dated May. 23, 2025
Corporate Participants:
Kapal Pansari — Managing Director
Rajesh Goenka — Chief Executive Officer
Himanshu Shah — Chief Financial Officer
Analysts:
Savli Mangle — Investor Relations
Meloni Mehta — Analyst
Vinay Menon — Analyst
Sameer Dosani — Analyst
Sankaran Narayanan — Analyst
Hardik Gandhi — Analyst
Rohan Patel — Analyst
Manoj Rajani — Analyst
Ajay Shashikant Kale — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4 and FY25 conference call of Rashi Peripherals Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then CDO on your touchstone 4. I now hand the conference over to Ms. Sauli Mangle from AD Factors PR’s Investor Relations team for opening remarks. Thank you. And over to you, ma’ am.
Savli Mangle — Investor Relations
Thank you, Ruth. Good evening everyone and a very warm welcome. Thank you for participating in the earnings call of Rashi Pericles Ltd. For the fourth quarter and financial year ended March 31, 2025. Before we begin, please note that this conference call may contain forward looking statements about the company which are based on beliefs, opinions and expectations of the company as on the date of this call. The cases are not guarantee of future performance and may involve risks and uncertainties that are difficult to predict. On the call Today, we have Mr. Kapil Pansari, managing Director Raj. Ajesh Goenka, Chief executive officer and Mr. Himanshu Shah, chief Financial Officer. The management will take us through the operational and financial performance for the quarter and the year gone by following which we will open the forum for Q and A. I now request Mr. Kapilpar Sari to take us through the company’s performance. Thank you. And over to you, sir.
Kapal Pansari — Managing Director
Thank you. Good evening everyone. We welcome you all to the earnings call for the fourth quarter and full financial year ending March 31, 2025. Hope you have had the chance to go through our financial results, earnings release and investor presentation that are available on our website and stock exchange. I have with me today our CEO Mr. Rajesh Goenka and CFO Mr. Himanshu Shah who will discuss operational and financial performance as well as respond to your queries.
The year 202425 showed some signs of stability allowing global economics to better align with their potential. The evolving favorable environment fueled a significant 10.8% surge in global tech spending primarily driven by strong investments in hardware and software. While IT services growth remains steady at 4.7%. The overall picture signaled robust digital adoption for Rashi. FY24 and 25 was significant growth from strategies perspective.
We strategically invested in expanding our portfolio of high end product and implemented a robust CRM system empowering over 450 users to enhance customer engagement. Furthermore, we extended our geographical presence with the opening of our 52nd branch in Srinagar. These initiatives have collectively driven exceptional growth, significantly outpacing industry averages. Building on this momentum, our focus for FY26 is on achieving comprehensive 360 degree growth. I now hand over to our CEO Rajesh Goenka who will further delve into operational update for this quarter and full financial year with you. Over to you, Mr. Rajesh.
Rajesh Goenka — Chief Executive Officer
Thank you Kapil. I extend warm welcome to all the participants on today’s call as we delve into the business highlights of the fourth quarter and especially the entire year. I am excited to announce that we continue to keep the momentum of all round growth in the financial year 2014 25. We not only achieved double digit growth but very importantly excelled in each of the verticals. As planned, our successful execution of signal. Significant projects for esteemed organizations like NMDC Reliance alongside strategic expansion into high potential verticals like visual display, Quick commerce and surveillance underscores our proactive and forward thinking approach. We have also made substantial enhancements to our operational infrastructure including an advanced embedded lab in Bangalore and the establishment of a state of art call center in Mumbai. Our recent recognition at Nvidia GTC 2025 as the best distributor further validates our unwavering commitment to making latest AI technologies available in India. Looking ahead to FY25 26, our strategic focus is on achieving deeper market penetration through the cultivation of stronger channel relationship. We will continue to expand our reach by adding new partners, new customers, more locations to our distribution network. We will continue to innovate in the technology space and especially in the AI space with newer products, technologies and solutions. With this thank you so much and with this I pass on to our CFO Mr. Himanshu sir. Thank you Rajesh and good evening to all the investors who have joined Today’s Call. I would like to take you through the financial highlights of the fourth quarter and full year 2025 on a consolidated basis. For quarter four 2025, total income stood at 29,732 million, so down by 1% YoY. EBITDA was at 960 million up by 30% YoY and PAT stood 27 million higher again by 12.1% as compared to quarter four FY25 on a consolidated basis. For financial year 2025, total income grew by 24.1% to 1 37,727 million. EBITDA rose to 17.5% YoY to 3,609 million. Batch serves 45.8% YoY to 2097 million Working capital days remained steady at 54 days in 2025 consistent with 24 levels reflecting our continued operational efficiency. On an annualized basis, ROCE was at 13.1% as of March 31, 2025 and ROE stood at 12.6% as of March 31, 2025. If we look at segment wise segregation on TTM basis, out of our two segments, 61% of our revenue. Was contributed by pes segment and 39% is contributed by Lit. When we see it region wise, 66% of the revenue was contributed by metro cities and the rest was 34% was from non metro. With this update we now open the forum for question and answers. Thank you so much.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and two participants are requested to use 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 Meloni Mehta from Monarch Capital. Please go ahead. Yes, please go ahead with the question. Can you speak a bit louder?
Meloni Mehta
Hello.
Operator
Yes, please take a question.
Meloni Mehta
Yeah, thank you for the opportunity. Sir, I wanted to understand a bit on the quarterly EBITDA margin like what led to the growth and how have you.
Kapal Pansari
So see EBITDA margin is essentially depend flows down from GP margins which is. Which is a factor dependent on sales mix. So year on year see, the EBITDA margin has grown from 2 point. Sorry, on NY basis it is 2.77 to 2.62 but for quarter it is 2.47 to 3.23. That essentially indicates the efficiencies and the sales mix. GP driven by sales mix.
Meloni Mehta
Okay. And secondly, what is the update on the replacement cycle for the laptop that we were expecting? How has the market being on that end?
Kapal Pansari
Yes, so Microsoft refresh is expected towards the end of the year. So that’s where the replacement cycle will begin. And in next 10 to 12 months we are expecting significant refresh happening especially in the commercial or the corporate segment. While consumer the transition may. May be a little bit slow.
Meloni Mehta
Okay, so probably. So from which quarter can we expect the numbers to come in for those deans?
Kapal Pansari
So the expected is Q3 onwards. It should start the conversion.
Meloni Mehta
Okay. And just one last question. Overall, how was the data center deals that you were doing and year on year, how do we expect that to move?
Kapal Pansari
Yeah, I think that’s a good question. So while data center overall continues to do good. But as far as Rashi is concerned, last financial year we had one single large or rather the largest order of 1500 crores which we successfully executed. However, in the current scenario we are not looking at such large data centers coming at one shot. So there would be small, small data centers coming up at multiple locations with multiple users.
So therefore we are looking at small, small opportunities of data centers across India rather than just being concentrated in one customer or one city.
Meloni Mehta
Okay, so actually sir, in continuation to that question, I wanted to understand that is there a slowdown in the data center because of any impact from the B6 side or any lights that you can show on that?
Kapal Pansari
No, there is no slowdown as such. Only thing is the capacity addition of data centers are now happening in a phased manner. That’s the only thing.
Meloni Mehta
Okay, so there is no impact from the deep side or is there something that we need to be concerned about?
Kapal Pansari
No, in fact AI mission by government is about to or I think they have just released orders, large orders to various AI data centers. I think that is going to be the catalyst for AI demand in the country.
Meloni Mehta
Okay. Okay sir, that helps. Thank you.
Operator
Thank you. The next question is from the line of Vinay Manon from Monarch Capital. Please go ahead.
Vinay Menon
Hi sir. Thank you for the opportunity and congratulations on a good set of numbers. Do you think sir, what led to this increase in GP margins like any product mix which we have changed and can this be the trend going ahead?
Kapal Pansari
The trend can be indicated by the annual numbers. Rather than a quarter, a quarter. Can be a mix of sales mix wherein you know, the GPS may tend to or maybe sometimes deal specific. So more meaningful trend can be drawn from annualized numbers which are, you know, in the range applicable to the trade.
Vinay Menon
Okay. Okay. But anyway, anything this quarter which you know, any mix change because you know, which help the margin because we after 6, 7/4 we have come to this 3% plus. And while other competitors are still near that 2.3 to 2.5, will we look at the 3% plus going ahead or will we stick to our guidance of that 2.5 standard margins?
Kapal Pansari
So 2.5 standard margin is more meaningful to the sector. And this 3.23 is cannot be taken as a trend applicable.
Vinay Menon
Okay. Okay. Okay. Great. And so from the cash flow point of view, our cash flow overall has worsened a little this year. Any reason why? Because generally second half our cash flows improve. But any reason why operating cash flows have, you know, looked a little worse compared to last year and things of that. So because I think our deal, YOTA deal has been completely executed. So we were expecting some improvement there. Has that flown through or will it flow through in the future?
Rajesh Goenka
So what has happened in last H2 since post Diwali? The overall market from business point of view also has been slower than anticipated. And concurrently the overall collections also have slowed down. But while saying so going forward we see market also improving and collections also improving.
Vinay Menon
Okay. Okay. So we can expect improvement going ahead in 26:27.
Rajesh Goenka
Absolutely, yes. In fact, if you remember our January call also we had indicated that there is a slowdown in the collection, especially in the OND quarter. Subsequently jfm, there has been some improvement, but major improvement should come now onwards.
Vinay Menon
Okay. Yeah, yeah.
Kapal Pansari
On an annualized basis, that impact on debtors is 5 days increase in the overall correction cycle.
Vinay Menon
Okay. That has five days has been increased. Okay. Okay. And the YOTA deal is completely executed. Nothing left.
Rajesh Goenka
Yes.
Vinay Menon
Okay. Okay. Small pieces pending. Yeah. Okay. And in terms of those going, I say so you always maintain that double digit growth is what you’re looking for. So enterprise, if we don’t do these enterprise deals, you know, which you know, That we are not going to look for these larger deals. So how will that change our overall?
Kapal Pansari
So I would break our discussion in two parts. One is our regular run rate business and the second is our large project business.
Vinay Menon
Yeah,
Kapal Pansari
Majorly it was Utah only which was 1500 crores. So our run rate business in last 20 years we have delivered high double digit growth. And our aspiration and confidence for similar consistency in the coming year is also there. However, on the project business, this 1500 crores, whether that will get replicated in the coming year, will it be 1500 or will it be 1000 or 2000? At this moment it is difficult to predict. But all we can say at this moment that smaller deals, but multiple deals are going on. They are there in our funnel, but it will all be subject to actual implementation.
Vinay Menon
Okay, okay, I get back in the few questions. Thank you.
Operator
Thank you. The next question is from the line of Samir Dasani from ICIC Prudential Asset Management. Please go ahead.
Sameer Dosani
Partly my question has been answered. So core business like rendered business, what is your guidance? You can just reiterate. And second is like how to think about working capital. It is at 54 days going forward, what should be the range? Because that will determine our roc roe for a business. So if you can throw some light on that.
Kapal Pansari
Yes. So I think on the business front, as I already explained, our run rate business, excluding the 1500 crores rest all the verticals last year we have grown. And in the coming year also we have a similar plan of growth. So on working capital cycle, like we have been telling that 54 days is something in our kind of, you know, vastly penetrated distribution infrastructure is something demands a cycle of around 50 to 55 days investment in inventory only our debtors and creditors still continue to net of each other in terms of days.
Rajesh Goenka
And there is a four day improvement in the inventory. Inventory we have in fact improved by four days in current financial.
Sameer Dosani
Okay, okay. So the rented business has grown only 8% this year. That that can improve next year. That’s what you are thinking about? Okay, okay. And margin wise this year we had obviously large deals. I’m sure that larger deals come at a lower margin. So should we think margins to improve next year from here? If she noted. Yeah.
Rajesh Goenka
Larger deals actually we ensure that roe roce are not compromised. So it’s not low margin. I would say. I would say it’s more of, you know, protecting the roe roce and that’s what we strive to achieve that.
Sameer Dosani
Okay, but margins like. Okay, roe roc.
Kapal Pansari
Yeah. Larger deals come at lower margin but at the same time
Sameer Dosani
The margin can improve. Right. Because of that.
Kapal Pansari
Yeah. Yeah, of course. Yes.
Sameer Dosani
Okay. Okay. Thanks. Thanks. Thank you.
Operator
Thank you. The next question is from the line of Shankar Narayanan from. I. Go ahead.
Sankaran Narayanan
Good evening, sir. Thanks for the opportunity. So my first question was regarding.
Operator
Sorry to interrupt you, sir. May we request you to speak a bit louder? We are unable to hear you clearly.
Sankaran Narayanan
Could you able to hear me now?
Operator
Yes, please go ahead.
Sankaran Narayanan
Yes. Thanks for the opportunity, sir. So my first question is regarding the Q4 revenue for this quarter. So what led to the decline of 1%? So I could see that in the past Q4FY24 we had a 33% growth. So I do accept that a high base effect would have did. But keeping aside what led to this degrowth or at least we could have seen some 5, 6% growth compared to RPs. Right. So what led to this growth? Sir,
Himanshu Shah
Thank you so much for answering on my behalf. 50% of the question yourself. So one, of course we had a disadvantage of a very large base of last Q4. Second, as I said earlier, H2 has the market has been flattish. Consumer market is little bit negative but commercial market was positive. So overall it was flattish. And third, the payment collections also in H2 was slower. So as a result of all these three factors put together, our Q2 Q4 to Q4 is flattish.
But that disadvantage now is gone. So April onwards we are back to normal and we are quite optimistic.
Sankaran Narayanan
Sir, this Q4 is responsible for commercial quarter, right? So can you give the breakup of this quarter with regards to PES or lit segment or even if you’re seeing the commercial quarter performed well, but that’s not reflecting our numbers. That’s what I make a sense.
Himanshu Shah
That’s why I said the payment cycles also were relatively slower. And as a result the business did not scale up as normally we would anticipate.
Sankaran Narayanan
My last question is regards to the quick commerce segment.
Himanshu Shah
So sorry, one more point maybe I just for a clarity we also since you someone mentioned that our data days had gone up so we also went little bit in the shell not to further extend our credit.
Sankaran Narayanan
Got it sir. So my second question was on the quick commerce segment. So how that segment is playing well sir, because it it’s a comparatively high margin segment than E commerce so how it’s performing.
Himanshu Shah
So this is a new avenue. Quick Commerce as you know is the blue eyed boy right now everyone wants to do quick commerce. We are using quick commerce for all our grocery usage. But Rashi Peripherals had the first mover advantage where we work with all these quick commerce companies and currently we are almost doing eight or nine brands we are distributing through them. It seems that this is an additional business that we are getting and the overlap with the regular channel and E commerce is minimal.
But it is still I think at an experimental stage especially for it kind of products grocery and all. Of course I think they will be super super successful. But with this first mover’s advantage we are very optimistic to have a very high growth on this quick commerce business.
Sankaran Narayanan
Got it sir. So my last question was on our ROE. So currently we are doing a 12.6% ROE and our plans are to increase the ROE slowly to 15 or 16 percentage. So let’s say if we are not expecting the kind of growth in the enterprise vertical. So usually it has a high receivables and payable cycles but overall it would increase our return metrics. So what’s our plan on improving our margin profiles from let’s say 12% currently to 15 or 16 percentage on ROE.
Rajesh Goenka
As we have taken growth capital last year and the growth capital when it comes into full cycle of the you know, growth and revenues then the ROE will you know come back to the levels of the standards applicable to the industry which is you know, 17 to 20%. So yes, you know current levels of 12.6% we expect in a year or two to jump to 15% and beyond that then when the full capital utilization happens. So we have as we have taken growth capital this dip is seen in the roe.
Sankaran Narayanan
Got it sir. And I expect the. This working capital to remain in the same range
Rajesh Goenka
We see some improvement scope in the same by maybe 5, 10%.
Sankaran Narayanan
Got it. Thank you sir. And one my last suggestion for from investment community is to add the brand based revenue contribution for each quarter sir like what you have did in Q3FY24. From there on you have removed that brand based revenue contribution in your presentation. So I request you to kindly add that in your presentation. Thank you sir.
Operator
Thank you. The next question is from the line of Hardik Gandhi from HPMG Shares and securities. Please go ahead.
Hardik Gandhi
Hello sir. Am I audible?
Kapal Pansari
Yeah.
Hardik Gandhi
So thank you for the opportunity and congrats on the decent set of numbers. So just wanted to have your perspective on the consumer demand in the next upcoming year. Do you see it kicking back given that there is a tax benefit? So do you think there will be a bigger spending from consumer side along with the demand from the corporates?
Rajesh Goenka
So while the income tax advantage may not directly affect the IT business or ICT business that’s more of leisure and easy spending by consumer. But I think considering the overall sentiment second overall our economical growth and third education and last but not the least is the enterprise corporate and data center. All this accelerating and third party reports at this moment are indicating double digit growth in the demand per se in the coming year.
And I am just back from US from some conference and there also I heard that globally also the PC demand has already started picking up so that’s an additional comfort that we get. In the coming year the demand will be at least doubled in double digit, higher double digit.
Hardik Gandhi
And for our company are we expecting similar at least 10 to 15% growth in the top.
Rajesh Goenka
So our guidance always right from inception has been that our last 20 years history is almost high double digit growth. So our aspiration continues to be the same even
Hardik Gandhi
If high double digit growth can be like or 50% growth is a high.
Rajesh Goenka
So 15 to 20% growth is our CAGR at this moment is 21% if you see
Hardik Gandhi
Correct. Correct. So that’s why I wanted to say these shifts. And just the second question on the margin front, so are we providing any services or are we planning to introduce some service which might help better our margin like even selling cloud and you know getting commission from that or you know, just on that service front.
Rajesh Goenka
So currently we do not have revenue from services. Whatever warranty services we do is to support our business and our brand. And that is the reason we have a lion’s share of business in those particular brands. So at this moment currently there is no plan is the answer.
Himanshu Shah
So the miniscule element of services in our P and L is coming from our subsidiary where we have 51% stake and cloud computing services are being done through that subsidy.
Hardik Gandhi
Understood. But I’ve seen other companies, they are starting initiatives where they just on a commission basis sell cloud as a service to their clients and to other organizations. So any thoughts plans to start a similar thing? Because that would just directly add to your bottom line.
Rajesh Goenka
Absolutely. So your feedback suggestion is noted.
Hardik Gandhi
Okay, understood. Just thank you so much. Have a good.
Operator
Thank you. The next question is from the line of Rohan Patel from Total Capital. Please go ahead.
Rohan Patel
Yeah, yeah. Thanks for the opportunity, sir. So I just want to know the characteristic of a new business vertical, that stack reflecting in our financials for FY25 which is AI based business. So can you just share some perspective on what are the customer side, what kind of business it is like service oriented or product oriented and what kind of margins do we enjoy and how will this business grow going forward?
Rajesh Goenka
So is your question specific to AI or it’s a generic new business question?
Rohan Patel
No, the one you are just showing in your presentation.
Rajesh Goenka
Yeah, so are you referring to the YOTA server deal again?
Rohan Patel
See sir, I’m talking about this, that revenue that shows, you know, 1687.
Rajesh Goenka
That’s why I’m just reclari. Yeah, so I think that I have already explained twice in the call that these were. This was one. Large AI data center order that we successfully have executed. But the current industry trend is not to go for such large units at one go. Rather than have small small units and keep on adding. But at the same time multiple customers are building up small small data centers which they eventually will expand into 2x, 3x 4x. So therefore right now as against this 1500 crore order, we are not giving any guidance that whether it will be thousand crores or 1500 or even 2000 or if not more.
Rohan Patel
Okay, and what kind of margins did we make in this business?
Rajesh Goenka
The margins obviously are lower but then the debtors and creditors also offsetting each other. So but percentage margin obviously is lower. Inventory days are also less in such kind of deals.
Rohan Patel
Okay. And sir, in that call you just mentioned that you were like entering into a different set of business of embedded solution and you wanted that to be 5 to 10% of your revenue going forward over next. So can you just update us regarding the development that’s happening over there and give a sense about the business. It would look like, like what is that business about what will be our end clients be, what would be their products?
Rajesh Goenka
Okay, so our embedded business is shaping pretty well. It’s a very unique. It is very unique and different business. The skill set and expertise required are also different. Unlike our ICT distribution where we are doing almost such a large business, we have created a separate team for it. We’ve also as a part of the value add, we have created a laboratory in Bangalore where the designs, samplings are done, testing are done and when they are ready, the prototypes are given to the potential customers to test.
Once they test approve it, then it goes for eventually production. The second point question was who are your customers? So typically customers, manufacturing customers, automobile customers, they are our potential customers. Some buy directly, some buy indirectly.
Rohan Patel
Okay, and would that be a margin accretive business? I hope that would be because it’s a business. Evaluated business and currently.
Rajesh Goenka
Yes.
Rohan Patel
So can you just throw a light on what would be like our margin profile. What kind of ROE that business would generate for us. You are talking only of embedded business. Embedded only embedded business.
Rajesh Goenka
Yeah. So at this moment we are more into an investing stage where we are building capacity, expertise, technical, know how laboratory investment. But the opportunity is huge. I think more than $2 billion of semiconductors are already being bought in India. We are just at the tip of ice work. And needless to say that more value add you to in business the margins are higher. So obviously the margins will be higher. But at this moment today if you ask me it will be difficult to spill out.
Rohan Patel
Okay. And just if you can you might have done this calculation what kind of payback period you are expecting from this?
Rajesh Goenka
So we are already profitable on this business. When I said investments I meant from in terms of margins and ROE and ROCs. So we are already profitable if we look individually only this as a. As this business.
Rohan Patel
Okay. So can you just give us like what kind of revenue it has contributed in this financial year for us and what kind of margin? Because we are already profit.
Rajesh Goenka
So this year about hundred crores plus revenue we have done in this business.
Rohan Patel
Okay. And we are like we have already break even and now we have profited.
Rajesh Goenka
Yes.
Rohan Patel
Okay. Okay. And sir, when we see historically in your presentation we have done ROE of say 23, 20% before our capital IPO money. So why are we targeting 15% ROE? Where like what has changed that now we are targeting a lower roe.
Himanshu Shah
It’s not targeting lower roe, it’s building up gradually. Because when you take a growth capital of such a size and the market dynamics and all what are there to grasp the opportunities it builds gradually. The volumes doesn’t come so fast. So once we reach to 15% obviously we will strive for higher. But our initial target is to get back to the base ROE of 15% and then build from there onwards.
Operator
Sorry to interrupt me. I request Mr. Patel to please.
Rohan Patel
Yeah, sure, sure. Yeah. Thanks for management for answering all the questions.
Operator
Thank you. The next question. On the line of Manoj Rajani from Rajani family office. Please go ahead.
Manoj Rajani
Hello. Am I audible?
Rajesh Goenka
Yes.
Manoj Rajani
Hi sir. Congratulations on a good set of numbers. So just wanted to ask you that you know given the tight working capital cycle which is common in your industry. So what is our plan to maintain this growth and also you know just without any adding any debt to the balance sheet.
Rajesh Goenka
So I think Himanshu has already clarified that the industry standard is this and our aspiration also is to maintain something similar or better. There are basically three parts of it. One is the inventory, second is our debtors and third is our creditors. So all these three corners we have to keep a tight watch on this and control while maintaining our aspirational growth of double digit. So if you see last year inventory has gone down but debtors have marginally increased but net we are still the same.
So there is no deterioration. Even when the market was the H2 was little bit slower.
Manoj Rajani
This is the current level would be a comfortable level for us even in the future.
Rajesh Goenka
Absolutely.
Manoj Rajani
Okay sir. And what is the range that we are comfortable with if in case it searching situation worsens.
Himanshu Shah
So it’s 50 to 60 days is the overall range. But we see that you know the business can go or demand the working capital cycles not beyond 60. Again the eyebrows get raised and it gets addressed we have that standard deviation range of death. So secondly more important to see here is that as long as we are able to net of status and creditors in terms of days we are in the safe zone.
Manoj Rajani
Understood sir. So just one last thing. So just wanted to know the. I’m sorry if it has been answered. So what is the proportion of the revenue of our top five OEM partners and is there any risk of more concentration in this?
Himanshu Shah
I don’t have the exact data but I can only generically answer that Rashi Peripheral is the least riskiest in terms of product coverage because we have very wide variety of brands and product categories. And last but not the least our 52 branches. So we are toward Pan India. That is one of the reasons our business has always been consistent and have a consistent growth of 15 to 20%. YOY
Manoj Rajani
Understood sir. So any approximate names that you could take? Top two or three maybe?
Himanshu Shah
Yeah, the top names I can say is Asus, Lenvo, Western Digital Intel. These are top names.
Manoj Rajani
That’s very much helpful, sir. Thank you so much, sir.
Operator
Thank you. The next question is from the line of Ajay Shantaram Kale and individual investor. Please go ahead.
Ajay Shashikant Kale
Hi. Thanks. Thanks for the opportunity. My question is what is the. If I see the last year full year percentage of channel wix, Visa, Visa, corporate or enterprise earning and E commerce. I understand QF commerce is still a early day baby or newborn baby but just want to know what’s the mix and from a revenue point of view and margin point of view. Yeah.
Rajesh Goenka
So our channel mix is 85% and our LFR is 7% and E commerce is 8%. And we are hovering around the same as we always explain that ICT products are not. They are a technology sales and you need consultancy in some form or the other to make the ICT products sales. Therefore, despite all the onslaught of online the ICT industry continue. The ICT industry is still dependent on the channel community whom we call it our partners. And that is the reason 85% business is coming from channel community.
Ajay Shashikant Kale
And my next question is thanks for that. And how about profitability? What’s the profit mix?
Rajesh Goenka
Yeah, so I want to say that and to add to what I already said that if you work with E commerce companies the profitability relatively is lower. So that is again one discouragement to. Therefore we. And since we are present in 52 cities of India our first preference goes to the channel business. Of course we cannot ignore all other forms of business which are E commerce, LFR and the new one.
Ajay Shashikant Kale
Okay, thanks. My next question is what’s the revenue mix of PC vs non PC business of Rashi for the full year basis
Rajesh Goenka
So broadly 55 to 45% would be PC versus non PC business.
Ajay Shashikant Kale
Okay. And within this PC business what. What is the percentage of consumer and commercial?
Rajesh Goenka
That number I don’t have often to give you. We need to collect the data.
Ajay Shashikant Kale
Yeah. So the. So the idea is just to understand whether the consumer business is growing or commercial business is growing.
Rajesh Goenka
So yeah, I think I have explained already. At this moment commercial business growth is far higher than consumer. So for us also our mainly growth is from commercial segment.
Ajay Shashikant Kale
Okay, thank you so much. Thanks.
Operator
Thank you. The next question is from the line of Vinay Menon from Monarch Capital. Please go ahead.
Vinay Menon
Yeah, so just a couple of things. We are at 900 crore debt now. The cash position is also a little lower. So will we take any incremental debt like you know, going ahead for growth? That is my first question. So
Himanshu Shah
See as far as working capital cycle when it is maintained at 54 days or to be more specific six, six and half cycles, any growth comes or any division comes within the year. The availment of debt and then it gets normalized along with the collection cycles which happens in the business. So debt requirement will be availed or not available. Depends upon growth opportunities coming into the business. And what is the combination of, you know, the contours of those businesses.
Ajay Shashikant Kale
Okay. Okay. And in terms of sir, how is like April May like you almost done with April May. So how are things looking up? Like have we seen demand increase or improve or anything? Any guidelines on you know, how things are looking up now?
Himanshu Shah
Yeah, so I think I again this also I explained our H2 was slower but this H1 seems to be on track. And all third party reports are indicating about 10% demand growth.
Vinay Menon
Okay. Okay. And media chip, the release is expected in June July. So are we expecting some demand from that also since we are the largest distributor for them. So are we expecting some kind of demand from that coming to 26?
Himanshu Shah
Yeah. So Nvidia demand continues to expand in consumer, commercial and data center. All three. And thanks for you to acknowledge that we won the distributor of the year award from Nvidia
Vinay Menon
And this pivot from the larger deals to you know, more snole probably 200 to 500 crore kind of deal. Is it because you know of the margin issue or was it because it sets working capital in H1? What was the reason for this pivotal strategy? So just want to understand.
Himanshu Shah
So this I what I said was more market, the way the market is going on. And right now we are not seeing such large 4,000 or 8,000 GPU data centers coming up at this moment. But at the same time demand is not subdued. We are seeing multiple data centers coming up across other cities as well simultaneously.
Operator
Sorry to interrupt me. We will request Mr. Menon to please rejoin the queue. We have participants.
Vinay Menon
Okay, I’ll just one last question. Okay.
Rajesh Goenka
Okay.
Vinay Menon
Okay. Yeah. Yeah. You know sir, one thing we have that you know we have 15% ROC benchmark which we. We want to get back to. So any chance how we’re looking towards that? Because that is what the company has been you know like thinking since you know it as a 15% is what we’re looking at this year obviously was a little lower. And obviously that was attributed also to the larger deal. So without this. Can we go back to that 15% margins here on the roer?
Rajesh Goenka
Yeah, it is achievable. And 15% is the, you know, target. What we have said is in short run in next one to two years time. Long run definitely remains in the range of you know, 17, 20%.
Vinay Menon
Okay, thank you so much. Thank you so much.
Operator
Thank you. The next question is from the line of Shankar Narayanan from I thought tms. Please go ahead.
Sankaran Narayanan
Thank you. Sir, I just have a follow up question. So what’s our current business on our exclusive distribution rights we do have on the certain product side. So what the overall revenue from that. Right? Sir,
Rajesh Goenka
Currently our exclusive distribution business is roughly about 20%.
Sankaran Narayanan
Got it sir. So by the way it has increased from 15 to 17 percentage to 20 percentage. Sir, if I am not.
Rajesh Goenka
Yeah, it is marginally increased. But I must say that exclusivity and non exclusivity does not have too much of relevance in this business. Because it’s more demand supply and the value adds that you bring to the market also. Maybe I take this opportunity that majority of the businesses that we are doing even if we are not exclusive we have the lion’s share in the businesses that we are doing. And that is what is more important
Sankaran Narayanan
For the products that we have exclusive rights. We do have. We do sell at a premium rate, sir. Because of we only have the rights in the market. So we have a higher gross margin in the segment, sir.
Rajesh Goenka
So this industry is more of flattish if not fixed margin. So the scope of earning extra margin even in exclusive. Is very small. It is not zero, but it is not very big unlike other industry. But the positive side also is that if the exclusive product doesn’t even doesn’t get sold, then it’s not your loss. Ultimately it will be covered somehow. So it has its own pros and cons. Not very high but. But not very low as well.
Sankaran Narayanan
Got it, sir. And regarding our recent news on Satcom Infotech. So what have changed in the plans of the acquisition? So what have really changed?
Rajesh Goenka
So the Satcom acquisition though we announced as a. As a plan to acquire, however that has. That plan has been terminated. I think the conversation between the two companies did not proceed as per plan and certain expectations decided to end the conversation. So that is not in our radar for next coming foreseeable time,
Sankaran Narayanan
Sir. But we do focus on acquiring companies in the business of software reselling because our other competitors also do the same and they have posted a good results on software reselling business because it has a huge opportunity in a country like India. So how are we going to capture that growth in our business, sir?
Himanshu Shah
Yeah, you are absolutely right. And that is one of the reasons why we engaged with this company in the first place. Unfortunately, this transaction is not going through that. But we have not dropped our plan to acquire or penetrate in this segment since this is still at the nascent and the drawing board stage and we do not have concrete information or any development to share with all of you. We have just informing that that Satcom takeover acquisition is currently not progressing positively.
But our focus for entering the segment remains strong. But we were and we want to do it more based on this learning of this transaction, the way it proceeded, the way it went back or fell apart. We are now redrawing the strategy to ensure that we do not face same issue again in the next engagement that we work with.
Sankaran Narayanan
Got it. Best of luck.
Operator
Thank you. The next question is from the line of Rohan Patel from Total Capital. Please go ahead.
Rohan Patel
Yes, thanks for the follow up opportunity. Sir. Can you just give us an insight in. To what are your plans to improve our cash flow from operations? Because we are consistently having negative cash flow. So to grow at 10 15% level of internal accruals which we are lacking right now. So it will be dependent all upon our ability to borrow or raise capital. This is not a healthy way to grow a business.
Himanshu Shah
So we are trying to find out solutions and implementing those also from the balance sheet like balance sheet solutions which can be. Which can help in improving the cash flows first of all. Second thing, the optimizing the working capital cycle, whatever scope I mentioned that will also help on funds generated from operations. Definitely there is no issues and those things are getting contributed directly or getting flowed back directly into the businesses only. I hope I’m able to answer that.
Rohan Patel
Yes, just one of the. You know last time when I got opportunity I asked about your embedded business. So can you just give some clarity about what kind of products or services we are working on like just to give us insight.
Rajesh Goenka
Yeah. So semi tech. These are basically semiconductor chips and we have tie ups with company like again Nvidia, Intel, Elmos, Micron, Western Digital. We buy their chips and these chips are then used to make some solutions. Maybe I can give you an example without naming anything. Today a car has more than 60 different types of chips. Because nowadays all the cars are totally automated. Right. Again if I go a little bit one step further, car headlight for example, again they are all automated.
So in a car headlight there are at least three to four chips. So these chips are essentially provided by Rashi Peripheral because we have tie up with those companies. But what different we do is these solutions. For example headlight solutions sampling we do at our laboratory and then we do business development work with various manufacturers for implementation.
Rohan Patel
Okay. And just if you can provide us with now at 100 crore revenue we are profitable. So what kind of margin we are meeting right now
Rajesh Goenka
It’s obviously higher than the regular ICT margins.
Rohan Patel
Okay. But just a rough ballpark figure if you can give is it in double digit margins right now and if so, how will this margin trajectory will be going forward?
Rajesh Goenka
Yeah, it is. I.
Himanshu Shah
Moment I can only say it is definitely higher, but the costs are also there at the same time. Once we reach to a good scale, I think that’s where we will see and that is why we are putting so much of effort, time and energy in building this business from scratch.
Kapal Pansari
Assigning a range at this level of business is difficult and cannot, inferences cannot be drawn. But as Rajesh said that it is, you know, it is definitely a higher margin
Rohan Patel
And based on what work you are doing and you might be having conversation with your clients, customers, can we see this business being 5x the price in next 3 to 4 years?
Rajesh Goenka
So the as I said earlier, currently the market size is $2 billion. $2 billion is the existing market. And with so much of more manufacturing happening in India, more automation happen, this market will rapidly grow. So that’s the opportunity. Opportunity is very large. We are only at the tip of the iceberg. But I think we are there at the right time, at the right place.
Rohan Patel
Okay. Okay. Yes. Thank you.
Operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Kapil Pansari for closing comments.
Kapal Pansari
Thank you investors. Thank you shareholders for participating this call of FY and Q4. As in all the questions in all your queries we have answered, one outlook that I want to leave with all of you is that we have now completed with one year of our operation in the listed space in the public domain where a lot of learning, a lot of questions and a lot of deliberations have happened about how we take this company forward in the next coming years.
I think the journey has been exciting and we can only share with more confidence that the opportunity this segment of semiconductor, of the enterprise and our traditional businesses put together contribute in this digital India of the future will only present more and more opportunities driving growth and better profitability for all of us put together. Thank you once again for participating this call and wish you have a very great weekend.
Rajesh Goenka
Thank you so much.
Operator
Thank you. On behalf of Rashi Peripherals Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.