TCPL Packaging Ltd (NSE: TCPLPACK) Q4 2025 Earnings Call dated Jun. 02, 2025
Corporate Participants:
Anoop Poojari — Investor Relations
Akshay Kanoria — Executive Director
Vidur Kanoria — Executive Director
Unidentified Speaker
Analysts:
Rohan Kalle — Analyst
Resham Jain — Analyst
Pavan Kumar — Analyst
Nishant Bagrecha — Analyst
Abhisar Jain — Analyst
Vipul Shah — Analyst
Heita — Analyst
Pulkit Singhal — Analyst
Presentation:
Operator
Ladies and gentlemen, you are connected for the TCPL Packaging Limited’s conference call. Please stay connected. The conference will begin shortly. Thank you Ladies and gentlemen, good day and welcome to TCPL Packaging Limited’s Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this call is being recorded. I now hand the conference over to Mr Anuk Pujari from CDR India. Thank you, and over to you, sir.
Anoop Poojari — Investor Relations
Thank you. Good afternoon, everyone, and thank you for joining us on DCPL Packaging’s Q4 and FY ’25 earnings conference call. We have with us today Mr Saket Kanoria, Managing Director; Mr Akshay and Vidur Kanoria, Executive Directors and Mr Vivek Dave, Chairman Finance of the company.
We would like to begin the call with brief opening remarks from the management, following which we’ll have the forum open for an interactive question-and-answer session. Before we start, I would like to point out that some statements made in today’s call may be forward-looking in nature and a disclaimer to this effect has been included in the results presentation shared with you earlier. I would now like to invite Mr Akshay to make his opening remarks.
Akshay Kanoria — Executive Director
Thank you. Everyone. Good afternoon, everyone, and thank you all for joining us on our earnings call. I will begin the call by taking you through the business highlights for the period under review, after which we will open the forum to have a Q&A.
From a full-year perspective, FY ’25 was a strong year for TCPL, delivered against the backdrop of subdued domestic demand environment. Both our Paperboard and flexible packaging segments outperformed industry growth and the international business also contributed meaningfully to overall performance. While Q4 was relatively softer, the year as a whole reflects the strength of our diversified portfolio and consistent delivery across segments.
On a consolidated basis, revenue stood at INR1,770 crores, up 15% year-on-year. EBITDA increased 17% year-on-year to INR293 crore with margins improving to 16.6%. PAT rose 44% to INR143 crore, while cash profit grew 21% to INR249 crores. In Q4, revenue stood at INR422 crore, a 5% year-on-year increase. EBITDA came in at INR72 crore with healthy margins of 17% and PAT grew 33% year-on-year to INR38 crores.
Moving to key developments, we have announced plans to establish an in-house cylinder manufacturing facility through our wholly-owned subsidiary Acura Techniques Private Limited. This state-of-the-art plant in Silvasa with a projected annual capacity of approximately 12,000 cylinders is expected to be commissioned by Q3 ’26, Q3 FY ’26. Equipped with advanced electromechanical and laser engraving technologies, the facility will play a critical role in strengthening our backward integration by significantly improving quality-control, enhancing print precision and accelerating turnaround time.
Over-time, it is expected to evolve into a standalone profit center with the ability to also cater to external demand. In parallel, we achieved a key operating milestone with the inauguration of our greenfield facility near Chennai, focused on high-quality paperboard cartons. This addition strengthens our manufacturing footprint in South India and extends our ability to serve both regional and pan-India customers more efficiently. Given that it is a greenfield setup, we expect a ramp-up over the next six to 12 months.
The paperboard industry is globally recognized for its green credentials, being inherently renewable, recyclable and responsible. As one of the leading players in this space, we believe it is imperative to complement the natural advantages of our core segment with climate action. In-line with this vision, we have announced the target to achieve carbon neutrality for operational that is Scope 1 and 2 emissions by 2040, using FY ’23, ’24 as the base year.
This commitment is a key step-in our broader sustainability roadmap and will further strengthen our ability to meet the evolving expectations of our global customer-base, many of whom are actively aligning with net zero and low-carbon supply-chain goals. The target is backed by a comprehensive internal assessment, peer benchmarking and stakeholder engagement. We have also appointed EY as our ESG consultant to guide this transition and support the development of a robust implementation framework.
In parallel, work is underway on TCPL’s first integrated report, which will offer a holistic view of our sustainability strategy and long-term value-creation model. In-line with our consistent track-record of value-creation, the Board has recommended a dividend of INR30 per share, marking 25 consecutive years of uninterrupted dividend payouts. This reflects our financial strength and sustained commitment to delivering value to our shareholders. We were also honored at the SIES SOP STAR Awards 25, which recognized our innovation and excellence in packaging.
Winning entries included folding cartons designs for KitKat Dark chocolates, Hair serum and ITC Dark Fantasy Dessert as well as flexible packaging for 3 roses, each reflecting the creativity, technical precision and high standards that define our brand. Looking ahead, our strong balance sheet and disciplined investment position us well to capitalize on emerging opportunities in the evolving packaging landscape. With a consistent 30-year revenue CAGR of about 17.6%, we remain focused on identifying avenues for sustainable, higher-growth and long-term value-creation.
As the industry continues to consolidate around larger organized players, our continued emphasis on innovation, operational excellence and geographic expansion ensures that TCPL remains strongly positioned to deepen its presence and drive the next phase of growth we can now open up to questions.
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 then 1 on their touchstone phone. If you wish to remove yourself from the question queue, you may press star then 2. Participants are requested to use handsets while asking a question. Thank you. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, to register for a question, you may press star then 1. Our first question comes from the line of Rohan Kale from Incred. Please go-ahead.
Rohan Kalle
Yeah. Hi, team. Just wanted to check, am I audible? Hello.
Operator
Yes, sir. Please go-ahead.
Rohan Kalle
Yeah, sure. Okay. Hi. So just wanted to check on the export side for us both FY ’24 and FY ’25 were good years. Do you expect that we can sustain a similar year-on-year growth momentum here in FY ’26 as well.
Akshay Kanoria
Yeah. Thank you. So yes, we’ve had a very strong run-in our export business and it’s been growing at a very strong rate every year for last several years. So yeah, I mean, okay, the base has grown. So now to sustain the same percentage of growth is, of course a more difficult than it was last year and the year before that. But still we see a good possibility in export and there is a quite a lot of inquiries as well as a lot of developments in the pipeline. So overall, we are quite positive on our export.
You know, timing is something which we can ever control. So we don’t know like whether the development will play-out this quarter or next quarter. But in general, the long-term trajectory is quite positive and we are quite bullish
Rohan Kalle
Sure. On the domestic business also, this year-on a low-base, we’ve been able to deliver decent growth. For FY ’26, how would you be looking at our domestic piece?
Akshay Kanoria
Yeah. So again, here quarter-on-quarter things we can’t really tell because we don’t — there’s too much fluctuation nowadays with so many different channels of sales for our customers, there’s a lot of fluctuation and there’s a lot of seasonal variation also and supply-chain has become quite unpredictable. But in the — if you look at it overall over a period of a year, yes, the domestic we do see this year will be an improvement. Well, number-one, we have our new Plant. So we are catering to a new geography in South. So that itself is going to drive some growth. But also in our rest of our plants where we have capacity and we have a lot of customers where we have a bit under development and that are kicking-in now. So overall, we have a good — a reasonably good forecast, I think for this year and we are quite positive that this year should be better. If you look at the macro commentary also, like this latest Q4 GDP print, the rural sector seems to be recovering. The monsoon has come early this year and the forecast is also quite positive and there’s this government income tax cut. We don’t know-how much these things are going to play-out. But overall, it seems that you know private consumption should be better placed this year than it was last year.
Rohan Kalle
Sure. Just to follow-up on your facility right now what would be your current utilization level there? And in terms of this year, how many more lines do you expect to be added there in that facility specifically.
Akshay Kanoria
So I’m not going to give you exact percentage, but it’s been only like two months since the plant started. So it is a — it takes a few months because usually our customers require us to go through a series of audits where you only get that audit done after some months of performance. And then after that, you get onboarded and start business. So we have always guided that it will take the first-six to 12 months for the unit to really come to a decent level of utilization.
Only after we get to a very good level of utilization will we look at for the capacity expansion. So we don’t see anything in this financial year.
Rohan Kalle
Sure. Just one last one from my end and then I’ll get back-in queue. On creative offset Printer Limited, what is the outlook for the year? I mean, news flow has been positive in terms of large consumer electronic companies now looking to India as an alternative to China. So has this sort of upped our outlook for this segment?
Akshay Kanoria
Yeah. So with creative offset, we are — we’ve been growing at a good double-digit rate even last year. And this year, we are expecting to even grow faster than what we did last year. And hopefully then the unit can start positively contributing to the company bottom-line. However, yes, the industry overall, I, I mean, there should be a decent growth this year. We’re also penetrating into various consumer product segments beyond just electronic and looking at higher value-add products.So overall, we’re quite positive on creative. This year should be a turnaround year for us, we hope. And yeah,
Rohan Kalle
Sure. All right. I’ll get back-in queue. Good luck, everyone.
Akshay Kanoria
Thank you.
Operator
Thank you. Our next question comes from the line of Resham Jain from DSP Asset Managers. Please go-ahead.
Resham Jain
Yeah. Hi, good afternoon team. So I have three questions. First one is, if you can just help with the revenue breakup, earlier that breakup was available in the presentation between folding cartons and flexible packaging. So if you can help with,
Akshay Kanoria
You want to give all your three questions or
Resham Jain
Yeah, yeah. I can do that. So that is the first one. Second is also if you can FY ’25 end, if you can help with the overall capacity and the utilization of both the divisions, including update on Inofilms, whether that plant got stabilized and what kind of utilization that is having? And lastly, you did mention about creative that it is growing at double-digit because I don’t have FY ’25 financials, but it seems that console minus standalone is creative, which means that it is having an EBITDA loss of close to INR5 crores versus INR64 crore revenue. I’m just assuming that console minus standalone is just creative, if that is correct and what is — what will change this loss which is there at the EBITDA level. Those are the three questions. Thank you.
Akshay Kanoria
Thank you. So folding carton is approx 80% and the rest is flexible packaging. It’s mentioned in our presentation. Yeah, there in the — there is one slide.
Resham Jain
Okay. Okay. I think I missed it. Okay.
Akshay Kanoria
Every month soon. So anyway, but it’s about 80% to 20% and then the overall utilization is about 75% as a company. And the Innofilms Vidur,
Vidur Kanoria
Yeah, so Innofilms is basically merged into TCPL now. Last year we completed that process and now we had some issues with our machinery, which we had disclosed before, which have you been more or less sorted-out and machinery is performing quite well. So market is growing for those films as well. And we also do cater a lot to our internal requirement of polyethylene film. So that’s going decently well and progressing. We are doing a mix of domestic and as well as export. So it’s adding a good dynamic to our flexible packaging business overall.
Unidentified Speaker
And this is. On the console versus standalone numbers, I don’t know where you’re picking it up, but we have a two subsidiaries. Creative is one and TCPL Middle-East is the other. So it’s not all attributed to CCPL to Creative. But anyway, in creative, we are still not making breakeven at the profit before-tax level and we hope that very soon we should be doing that.
Resham Jain
Okay. Understood. Can I have one more follow-up on Innofilms?
Akshay Kanoria
Yeah, sure.
Resham Jain
So just on Innofilms, this plant was set-up to manufacture the specialty films. So you mentioned that you do a lot of internal requirement, but are you manufacturing the specialty films or the normal films only from the existing plant?
Vidur Kanoria
Yeah, we do both things. So it’s a mix of the regular polyethylene film, which is used in flexible packaging as well as the specialized film, which was meant to replace polyester and polypropylene. So it’s a mixture of both. Unfortunately, in India, the growth of that — the requirement of that film with major brand owners is still growing. It’s not yet fully across different channels. So for example, we’ve in the past year launched this product with Unilever and Nestle and those are in the market right now.
But it’s being slowly adopted across the major brand owners. So it’s not — I would not say that it is where we thought it would be in terms of the market, but it is growing and we see that it will have its place in the next few years and it will grow for sure.
Akshay Kanoria
But basically these brand owners are all keen to develop but the regulation has to force them to move to the sustainable packaging because it entails a slightly higher-cost. So until the regulation pressure, when the moment the regulation comes, then everyone will switch-over in a rush and that will be a very big year for us. But until then, we have to develop and then there’s export potential, which we are tapping in the meantime.
Resham Jain
Understood. Very clear. Thank you and all the best.
Akshay Kanoria
Thank you.
Operator
Thank you. Thank you. Your next question comes from the line of Pawan Kumar from Ratna Treya Capital. Please go-ahead.
Pavan Kumar
Sir, can you please give us an understanding of the capex of around INR200 crores that you have done this particular year? And also what is the expected capex for FY ’26 on down what kind of projects are we doing that particular capex? Secondly, on, what is the capacity utilization, what would be our capacity utilization right now? Yeah. Those would be my wishes.
Akshay Kanoria
So the capex was largely spent on our new plant in Chennai, then we have — you know that’s shown under capital work-in progress as also the cylinder plant, which is under-construction right now and we added one-line in Goah which was commissioned last year in October, November. Apart from that, We added also some equipments in our flexible plant and in our Silvasa offset plant. So it was about 150 cr total capex for the year, out of which about 50 CR is under work-in progress. So it hasn’t been commissioned. It will be commissioned in the current year.
Unidentified Speaker
And for coming year, it will be less only. We are seeing the exact amount we are still sort of working through because we have some plans which may not fructify.
Akshay Kanoria
Yeah, this year there is no major new massive item, no greenfield or anything like that plan. So overall moderate capex load for the coming year in terms of no films, we just answered that question it be about 60% 70% utilization.
Pavan Kumar
Okay.
Akshay Kanoria
Anyway, that will come anywhere in the number because it’s consolidated.
Pavan Kumar
Okay. One thing I wanted to check with you was also creative, what might be the utilization? And I mean, look, we had acquired this business around two, three years back, but that — I mean, the market demand has not come up yet. So how much time do we think it will take us to actually get to a decent utilization there? And also on the Chennai plant, do we expect to get market-share of other competitors or it like how are we expected to ramp-up that particular facility?
Akshay Kanoria
Yeah. So on the creative, I literally just answered that with Resham’s question. On the Chennai, we — yeah, I mean, of course, there is — somebody is supplying to those people today, whoever is there in South, it’s not that they don’t have gardens. And there’s also a lot of new investment coming up in that region as I’m sure you must be seeing all-the-time in the newspapers, it’s a very dynamic part of the country and a lot of the new FDI and new export opportunity is coming to South India.
So that is the — that is also a big target market. And as we had said earlier, when we were setting up the plant that we are looking at further increasing our exports from this plant, being that it’s well situated for certain markets. So yeah, that’s what we’re looking at.
Pavan Kumar
How many do you think, would it take us to get this particular plant to complete utilization? And how many lines are there?
Akshay Kanoria
Just 10 minutes back, but you know six to 12 months
Pavan Kumar
So nothing. Okay. Okay. Thanks, sir.
Akshay Kanoria
Thank you.
Operator
Thank you. Your next question comes from the line of Nishant from InCred. Please go-ahead.
Nishant Bagrecha
Hi, Akshay and Sakeiji. Thank you for the opportunity. Hello. Am I audible?
Akshay Kanoria
Yeah, yeah.
Nishant Bagrecha
Yeah. So thank you for the opportunity. Sir, my first question is on carton. So again, I believe an earlier participants also raised this question. So with the recent commissioning of a new line in Chennai and our progress in closing the gap with the Parksons, who is one of your largest competitors. So again, is our strategic objective to reclaim and establish the leadership position as the largest cotton player in India.
Akshay Kanoria
We don’t want to discuss competition on the earnings call. So I won’t comment on competition. But whether we are number-one or number two, I mean, okay, it’s always nice to be number-one and we’d love to always be number-one, but other people’s actions is not something which one can control. And we are a long-term player. We are here for, you know, I’ll be on this call with you for next many years to come. So we have to think like that and we have to act like that. So our decision-making is more long-term.
We see what the market requires and what it can sustain. And then accordingly, we invest and we grow. And in one year or two years or three years in the middle, if we have to — if somebody is bigger, then they’ll normalize over a period of time. So that’s our approach.
Nishant Bagrecha
Sure, sir. Thank you. Sir, my second question is on export. So having performed strongly in export over the last two, three years. So again, which market do we anticipate will drive incremental growth moving forward? And additionally, how do you foresee the overall export contribution evolving over the next few years?
Akshay Kanoria
So all our existing markets are also growing for sure. And also we have — I’ve mentioned in the past in a previous call, I think about our ambition to grow in the US and North-America more generally. We are seeing good traction there. And especially with the latest okay, it keeps changing by the minute, but the tariff uncertainty is there, so customers are looking to shift purchasing to India. So that is a positive area. And otherwise, now India is also signing all these FTAs with various countries, duty rates are coming down.
So for manufacturing companies based in India, it’s quite a positive. So these things are all adding on to our optimism and we are seeing also other sort of manufacturing moving to India. So those products are being exported. So the packaging for that is domestic, but it’s kind of like an export. So we’re looking at that also as a positive for our business. So overall, yeah, a couple of new markets and our existing markets are also still good room to grow. I mean quarter-to-quarter variations will be there. We can’t really comment on that. But if you look at over long-term, there is a good positive direction.
Nishant Bagrecha
Sure, sir. Sir, lastly on cost. So again, as you said that the — on the backward integration announced for cylinders. So how much cost-savings can we expect from this? And again out-of-the total capacity announced, how much would be required for internal consumption?
Akshay Kanoria
So basically this internal consumption will fulfill enough of the capacity required for the plant to justify its day-to-day operations. The reason we are putting this up is not to save cost or to you like I said, it’s not about the financial return from this particular investment, but it’s overall to strengthen our offering to our end-customer because we’re facing a lot of issues when it comes to supply, sometimes when it comes to quality.
And then lastly, when it comes to confidentiality over our designs and our customers and our data. So all of this is much, much more peace of mind if we have our own unit in-house and nearby to our existing plant, so this was our logic and the financial point is that it will be able to justify the working of the plant. But for the return on the investment and all to come in, which will — that will take a little longer time where we will have to develop business in the market, which we have already started to do.
And we are quite positive because overall in this segment, it’s mostly a bit of an unorganized sector and the quality and all is not where we would expect it to be. So I think we can add some value in this segment. But it’s — the immediate focus is to sort of strengthen our backward like our frontline, which is the printing business.
Nishant Bagrecha
Sure. Sure. Thank you. All the best, sir.
Akshay Kanoria
Thank you.
Operator
Thank you. Thank you. Our next question comes from the line of Abhisar Jain from Monarch AIF. Please go-ahead.
Abhisar Jain
Yeah. Hi, sir. Thanks for the opportunity. Sir, just wanted to know that from the demand perspective in FY ’25, which was the sector or the sub-segment that you saw the — you know the best demand scenario or which is a sector which basically you feel the best or the good about in terms of the demand as we move into FY ’26.
Akshay Kanoria
So generally speaking, this premiumization trend continues and we are seeing any premium end segment is continuing to get a good growth. Also, we are getting more share. So it’s a bit of a misleading for me because of our print quality and overall value Value proposition to customers. But generally speaking, this premiumized — premium segments are where we see the best growth in the last couple of years. Which is a good thing because it increases the bottom-line and there we have a proposition like to win. Then there’s other — there like this electricals industry, agri industry, these are all growing faster — much faster than GDP. So here also there is a good demand growth. But hopefully this year, if with a good — one more year of good monsoon and some government tax benefits and we hope if there’s a middle-class and lower class revival in-demand, then the mass segment also should hopefully pick-up this year.
Abhisar Jain
Sure. Sir, so this FMEG and electrical segment, which if I’m not wrong was around 10% of our revenues, but still growing very fast. Has that percentage now starting to increase meaningfully in terms of the revenue-share?
Akshay Kanoria
No, I don’t know where you got that number from. We’ve never given such information. We don’t give segment-wise information, but it’s a small segment still, but it’s — there’s a lot of growth potential.
Abhisar Jain
Okay. And sir, the exports for the last two years, they have been growing very fast. I’m saying from FY ’22 to FY ’24, it’s almost you know near from INR250 crore, INR10 crores INR470 crores in FY ’24. So in FY ’25, have we kind of maintained those kind of 20% plus rates and where are this being driven from? You obviously mentioned a few markets where you are targeting your entry, et-cetera, etc. But just wanted to know whether we have opened up new sectors, new segments or we have won some very large lines, etc., which has driven this growth and if you can comment on FY ’25 whether also it was higher than 20% growth.
Akshay Kanoria
Yeah. So our export business has had a very strong year once again and we are hopeful that it will continue.
Vidur Kanoria
Yeah. I think I answered a little bit about where we see growth in export already. But overall, it’s okay if we see it continue.
Abhisar Jain
So last three years, this strong growth was driven by new clients, new geographies or selling same clients new products. What has driven this exactly?
Akshay Kanoria
I don’t want to talk about full exports. I’d rather not comment on that.
Abhisar Jain
Okay, sir, no worries. And sir, last bit on the capital allocation decisions going ahead with the kind of top-line we have and some bit of organic expansion done, whatever incremental cash-flow that we generate from here, can you give a sense of how you would want to allocate it and if you are looking for any new initiatives or new segments to enter.
Akshay Kanoria
Yeah. So we are looking all-the-time at new segments to enter some inorganic growth opportunities and some new areas of industry, which we can focus on, where this is a constant sort of thing that we are doing, we are evaluating. But we are quite conservative with the forecast. So we try to be — we try to look at where we can really get the most bank for our bank. So I mean, we’ll be updating you all from time-to-time on anything new. So we are working on a couple of things.
But yes, definitely, we’ve been growing at a certain rate last 10, 15, 20, even 35 years, if you look at it, we’re growing at almost 20%. And so our ambition is to continue or surpass that only. And therefore, we are always looking for new segments and new areas to grow. But it has to be really worth doing. So we really take a lot of time in evaluation and then if we’re looking at five opportunities, maybe four don’t go through at any time.
Abhisar Jain
Understood, sir. Thank you so much, sir and best wishes.
Akshay Kanoria
Thank you.
Operator
Thank you. The next question comes from the line of Vipul Shah from RW Equity. Please go-ahead.
Vipul Shah
Thank you for this opportunity. First of all, congratulations to Mr Kanoria for being featured in the Print Week Power 100. That’s a phenomenal achievement, sir, considering the company performance and the company trajectory which you’ve guided and the return ratios, which are so best-in class. As long-term patient investors, we really thank you and the management for that. One question, Akshay I had is that every year at the end-of-the year, we always used to give a slide on domestic and export revenue breakup. I recollect that we share this information only once a year because in any case, when the annual report comes, that number is going to be public. So can you help me with the export total revenue for the FY ’25, please?
Akshay Kanoria
Thank you firstly, very much for your kind words. It’s very nice of you and you know, thanks a lot. On the export breakup, yeah, I think that was a miss this year. We probably — I mean, we didn’t really think about it, so it got missed. Percentage-wise, it could be, I think little bit higher than last year,
Vipul Shah
But I think last year there was a slide which said export revenue was around INR460 crores, which was INR68 INR32 sort of breakup
Akshay Kanoria
It’s about similar percent, a little bit higher, marginally.
Vipul Shah
Got it, got it. I really don’t have anything further to ask because on tariffs also I think you made a comment that it looks much positive from our company perspective than for most other industries. So really thank you guys and you’re doing a great job.
Akshay Kanoria
Thank you very much.
Operator
Thank you. The next question comes from the line of Heita from Monarch AIF. Please go-ahead.
Akshay Kanoria
Can you repeat that from whom?
Operator
From Heita? Heita from Monarch.
Akshay Kanoria
Yeah. Yes, hello.
Heita
Yes. Hi, Mr. So most of my questions have answered. I just had a couple of basic questions. Could you — could you guide us on the — the gross margin and EBITDA margins from here on? Can we expect around 17%? I believe this quarter so saw a good 5% gross margin expansion. Do we see the margins sustaining at 17% from here on?
Akshay Kanoria
Hi. Yeah, so we don’t give guidance on that, but broadly look at the last few years average is about this only pretty much like 15 17 each May depending on the quarter. So more or less no dramatic change expected, I would say.
Heita
Okay. Okay. And on the working capital side, do we believe our working capital days will be around 95 to 100 days? What do we expect it to go further down?
Akshay Kanoria
Yeah. So our working capital days is something we’re not very happy about and we are making all endeavor to improve that. But we are seeing some improvement. I think compared to last year, there was an improvement of a few days and we hope that this year there will be further improvement. So could you give some guidance of say around could it touch 85 to 90 days? Do you have any internal targets per it depends on the — if you customer-to-customer. So I mean, we don’t have any guidance per se, but just I guess take the last couple of years average, I don’t got 85 90 days is. We’d like to do better than that though, but I wouldn’t guide for it.
Heita
All right. Thank you so much.
Operator
Thank you. Our next question comes from the line of Pulkit Singhal from Dalmus Capital Management. Please go-ahead.
Pulkit Singhal
Thank you for the opportunity and congrats on a good set of annual numbers. I think this is the third consecutive year for us to have return ratios and above 16% margins as well. So congrats to the team on that. My first question is on the revenue growth rates itself. I mean, last two years has been on an average 10% odd and this is largely driven by exports and flexibility. And domestic We had various issues of decarbonization and then RM prices are going down. Is it fair to say that this year, we will probably see all three engines kind are kind of firing in terms of domestic exports and flexibles, is it a fair assertion?
Akshay Kanoria
Thank you very much,, for your nice comment. And as far as the — yeah, triple engine sort of thing, which we hear lot of the news nowadays, we — yeah, I mean, sure, we hope so. We always — we have our own internal forecast of where things can be if everything goes well and but always there’s some headwind or the other which comes. These days, there’s so much uncertainty, one doesn’t know what’s going to happen next week but if domestic demand picks up, then certainly this sort of fiddling growth that we’ve had last few years can certainly be better historically.
So we have been growing double-digit on a mostly domestic base business, you know. So there is no reason why we can’t. And yeah, I mean, if everything. But sure.
Pulkit Singhal
So if growth is expected to be better, you’ve always added some plant or the other during the year. Is it that this year we are looking at other avenues and therefore, we are kind of being a bit moderate on the organic
Akshay Kanoria
Maybe we just added Chenna, it’s hardly been two months even. And in Goa, we did expansion and we’ve added substantially to the space in the plant and in the Silvasa flexible also, we’ve added substantial amount of space in the plant so that we can further add capacity there. And in other plants, we have some further space and further capacity we can tap. So for now, no need to add any greenfield or. Yes, we are looking at new opportunities in new lines of the business. So — but that has to come to certain level before we discuss anything.
Pulkit Singhal
Understood. Fair. In terms of the quarterly volatility in revenues that we’ve seen. I mean, I’m just thinking over the last three years, probably this is one year where the level of revenue volatility Q-on-Q basis and even margin volatility has been not higher. Is this a new normal for the business or what is driving this particularly this year? And how the volatility revenue? Yes. Yes, like for instance, last quarter was INR483 crores of top-line and now it’s 420, right? So I’m just wondering, we’ve not seen this before. I mean, Q4 was always better than Q3. So I’m just wondering how to think about the business because you have multiple lines now.
Akshay Kanoria
So I think domestic industry has become very volatile and there’s a lot of swings and the inventory piles up at our customers end, then they suddenly stop offtake and then they wait for it to get exhausted and then suddenly their offtake really ramps-up. And it’s really strange and even customers are a little bit perplexed because I think their end-consumer demand source itself has evolved like earlier, it was a very traditional distribution-led model and now there’s this quick commerce and e-commerce and modern trade and general trade. So there’s like so much a fluctuation that planning of demand is very dynamic nowadays.
So this is a new trend and then you know exports can fluctuate. So if the two things come together in certain quarter, then that 1/4 will be a little bit poorer, but then it normalizes. So I mean this quarter-on-quarter thing is something we don’t really have to concern us as too much, I think.
Pulkit Singhal
Understood. Just last question on exports. You mentioned about, I mean the last three, four months has been volatile global markets in terms of tariffs, supply-chain. How — I mean, you hinted about India benefiting from it. Now I’m just thinking apart from FTAs, is there any perceptible shift from other countries to us that you’re witnessing that might benefit us?.
Akshay Kanoria
I mean, we are seeing Indian manufacturing growing in certain segments like labor labor-intensive manufacturing, then we are seeing more interest from our customers to export their finished products to their counterparts abroad, which adds to demand, then we are seeing new customers approaching from other geographies, but these all have their own lead times and cycles. So things can take some time also things can happen. So there’s — there’s a lot of interest at least in India for sure.
Vidur Kanoria
And India also we have been quite stable, I think as a country this last couple of years. So people are understanding and recognizing that I think.
Pulkit Singhal
Got it. Thank you so much. And all the best.
Akshay Kanoria
Thank you. Okay.
Operator
Thank you. Thank you. Ladies and gentlemen, we’ll take one last follow-up question from the line of Resham Jain from PSP Asset Managers. Please go-ahead.
Resham Jain
Yeah, thank you for taking my question again. So I have just one follow-up question on capacity utilization. So if I look at the past commentary, we were always like 65-odd percent if I look at the average. You mentioned 75%, so I just wanted to know whether like is it because of the weighted-average of flexible and carton from where which is higher, because in the past, we always used to have 65% odd level of utilization of our plant because of peak numbers which we could achieve..
Akshay Kanoria
So this utilization thing is always a little challenging question for us to answer because the definition of the capacity is a bit tricky, you know, but yeah, I mean like around 70 odd percent is fine.
Resham Jain
Okay. Okay, let me ask it differently. What is the peak level of sales you can do from like peak projects which are going on once it will get commissioned? A ballpark, how much more headroom you have to grow from current levels, like you have close to INR1,800 — INR1,700 odd crores revenue and once your existing CapEx will get over, what is that you can achieve? Ballpark broadly.
Akshay Kanoria
2,000 plus I think probably
Resham Jain
Okay. Which means that from next year or maybe next 18 months or so, you have to plan something beyond what you have already announced. Is that right understanding?
Akshay Kanoria
I mean we are always adding something or the other, somewhere or the other like either we are adding capacity or we are adding space so that we can add capacity. So it’s going on ongoing thing, but no dramatic, I think the capex change from last year.
Resham Jain
Okay. So okay. Okay, understood. Right. Thank you. Thanks,.
Akshay Kanoria
Thank you.
Operator
Thank you. Ladies and gentlemen, I would now like to hand the conference over to the management for closing comments.
Akshay Kanoria
Thank you. I hope we have been able to answer all your questions. Should you need any further clarifications or like to know more about the company, please feel free-to contact us or CDR India. Thank you again for taking the time to join us on this call. We look-forward to interacting with you next quarter. Thank you.
Operator
Thank you. On behalf of TCPL Packaging Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.