Tinna Rubber and Infrastructure Limited (BSE: 530475) Q3 2025 Earnings Call dated Feb. 11, 2025
Corporate Participants:
Gaurav Sekhri — Joint Managing Director
Subodh Kumar Sharma — Director and Chief Operating Officer
Analysts:
Sana Kapoor — Analyst
Parikshit Kabra — Analyst
Aayush Rathi — Analyst
Nihal Shah — Analyst
Sunil Jain — Analyst
Viraj Mahadevia — Analyst
Sunil Shah — Analyst
Karan Gupta — Analyst
Aakash Javeri — Analyst
Divy Agrawal — Analyst
Smita Mohta — Analyst
Raj Lakhani — Individual Investor
Chandra Gupta — Individual Investor
Atharva Shiledar — Individual Investor
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Tina Rubber and Infrastructure Limited Q3 FY ’25 Earnings Conference Call hosted by Go India Advisors. 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 start then zero on your touchstone phone. I now hand the conference over to Ms Sana Kapoor from Go India Advisors. Thank you, and over to you, ma’am. Thank you.
Sana Kapoor — Analyst
Thank you, Rutuja. Good afternoon, everybody, and welcome to Tinna Rubber and Infrastructure Limited Earnings Call to discuss the Q3 and Nine-Month FY ’25 Results Call. We have on the call Mr Gaurav Sekhri, Joint Managing Director; Mr Subodh Kumar Sharma, Director and Chief Operating Officer; Mr Ravindra Chabbra, Chief Financial Officer; and Mr Anurup Arora, Senior Vice-President, CPG and BD. We must remind you that the discussion on today’s call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. May I now request Mr Gaurav to take us through the company’s business outlook and financial highlights, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
Gaurav Sekhri — Joint Managing Director
Thank you, Sana. Good afternoon, everyone. Thank you for joining us today for the Q3 and Nine-Month FY ’25 earnings con-call of Tinna Rubber and Infrastructure Limited. Our financial results and earnings presentation is available on our website and on stock exchanges. I believe you have had a chance to review the same. I will briefly take you through the strategic updates and operational performance highlights, post which my colleague Subodh, our CEO, will take-over and give details about the financial performance for the quarter and nine months. I am pleased to share that Tinna Rubber has delivered strong financial and operational performance in nine months of FY ’25. We have achieved revenue of INR376 crores in nine months of this financial year, surpassing the total revenue of FY ’24. I am pleased to confirm that we are on-track to achieve our earnings guidance set-out at the beginning of the year, exceeding INR500 crores of sales for FY ’25. Coming to operational performance, the volume of tires processed in nine months has increased by 42% year-on-year and on quarterly basis, the volume has increased by 20%. Coming to nine-month segmental performance, revenues from infrastructure, industrial, consumer and Steel segment have increased by 23%, 17%, 70% and 111% on Y-o-Y basis respectively. Infrastructure segment’s volume has grown by 30%. This growth has been supported by 52% volume growth in CRMB processing and over 80% volume growth in the bitumen emulsions business. In the Industrial segment, we witnessed a volume growth of 18% and exports have grown by 51% in volume in the nine months of FY ’25 and will continue to remain our focus area. In Q3 of FY ’25, the tire industry saw a sharp decline in net profits, mainly due to higher finished goods inventory and low capacity utilization, resulting in weak demand for our recycled rubber materials. Strong performance on exports is proving to be a key strength in overcoming these domestic challenges and for driving growth for us. Consumer segment experienced a strong volume growth of 79% and sales in this segment are growing and will remain our focus area for better capacity utilization at our new plant at. Our steel segment witnessed an outstanding growth in volume of 120% due to higher volumes of tire recycled and addition of steel abrasives to our product basket in FY ’25. Coming to strategic updates, out-of-the INR48 crores of capex plan in the current financial year, INR38.6 crores has already been spent and the work is progressing as per plan. Company is evaluating other avenues of revenue generation and capex will be deployed accordingly in Q4 and onwards. Credit rating of the company has been upgraded to Care BBB-minus resulting in reduction in cost of borrowing. Also, I am pleased to inform that Tina Rubber has got released all of its corporate guarantees, which were given to associate concerns. And as of today, no more corporate guarantees are there from the company. Providing a brief overview on the project updates, in the nine months, Valley plant has contributed about INR36 crores of sales. Going-forward, we are on-target for Vale to contribute approximately INR100 crores of revenue annually. MRP’s additional capacity of 5,000 tonnes at Gumulti plant has been commissioned. With this, Tina has become the largest MRP producer in the world, having capacity to produce 20,000 tons of MRP annually. In the PC and MD business, which is polymer composites and business, we have undertaken extensive R&D and product development in last two quarters. From Q4 onwards, we expect the plant to operate at around 30% capacity utilization, which is only at around 15% until now. We expect PCMB business to operate at 60% capacity utilization by H1 of FY ’26, which will contribute approximately INR30 crores of revenue. Renewable energy solar power system has got commissioned in Q2 of FY ’25 and it has contributed to 16 lakhs of savings in power cost and bringing us closer to our goal to becoming a more a green business. Coming to international projects in Oman, the facility has processed approximately 10,000 tonnes of end-of-life tires in nine months and it has generated a revenue of about $3 million US dollars. To have better control on cost and to increase our optionality on selection of type of waste tires, Tina has set-up additional equipment to also process off-road tires in Oman. In Saudi Arabia, we are in the process of identifying suitable land for establishing the plant to support our plan investment to set-up a 24,000 tonne per annum tie recycling facility. Our aim is to commission the project by the first-half of FY ’26. In South Africa, I’m happy to share that the JV company has got permission to export 24,000 tons of semi-processed end-of-life tires. The first phase operations are set to begin in Q1 of FY ’26. With that, I would like to hand it over to you, Subodh, and you may please share your insights and comments on the financial performance. Over to you, Subodh.
Subodh Kumar Sharma — Director and Chief Operating Officer
Thank you, Gaurav ji. Am I audible, Sana?
Sana Kapoor — Analyst
Yes, sir, you are. Please go-ahead.
Subodh Kumar Sharma — Director and Chief Operating Officer
Thank you so much. So I will take you through the Q3 Nine-Month financial year ’25 financial performance of the company, post which we will open the floor for questions-and-answers. Coming to consolidated financial performance for nine months, our revenue increased by 49% to INR376 crores due to increase in tire crashing volumes and operational efficiencies. Overall cost increased due to increase in raw-material cost of end-of-life tires, higher ocean freights, weakened INR, drop-in steel scrap prices and some one-time cost of repairs. Despite these challenges, EBITDA increased to INR59 crores, up 46%, EBITDA margin stood strong at 15.58% at console level. PAT increased to INR37 crores, up by 49%, PAT margin increased to 9.75%. On standalone basis, Tinna showed a similar growth story with revenue, EBITDA and PAT up by 48 30 and 34% respectively. Coming to the consolidated financial performance for Q3 FY ’25, revenue increased to INR123 crores, up 32% on Y-o-Y basis and 4% on Q-on-Q basis. In Q3 FY ’25, Tinna has accrued EPR credits worth of INR2.76 crores. EBITDA and PAT saw a drop on both Y-o-Y and Q-o-Q basis due to increased raw-material cost and few one-time expenses. To shed light on the strategic levers for margin improvement moving forward, I would like to highlight that we have completed initial investments in setting up and PCMB business and now higher capacity utilization at these facilities will drive margin expansion. Additionally, discussion with customers regarding price increase are underway with the impact expected to be visible from Q4 FY ’25 onwards. The recent credit ratings upgraded to BBB-minus has facilitated better interest rates on CC limits, while ongoing power cost-savings from solar power plants will continue to support margin growth for us. So in summary, is making remarkable strides towards this vision 2027 aiming to expand recycling plants from six to 10 locations, achieving a revenue CAGR of over 25% and revenue of INR900 crores with consistent profitability growth. Additionally, its diversified and customized product portfolio, focus on international operation and global expansion and experienced management team backed by strong stakeholder support, further strengthen its growth prospects. I would now like to open the floor for question-and-answers. Thank you and over to you, Sana.
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 remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles you. The first question is from the line of Parikshit Kabra from Pkeday Advisors LLP. Please go-ahead.
Parikshit Kabra
Hi, thank you for the opportunity. Could you please elaborate on what was the nature of the increase in your raw-material costs and one-time costs this quarter because the fall in margin has been consistent for the last couple of quarters. So just want to see if there is some underlying trend here or is it truly just a one-off and we expecting next quarter the margins to come back to your normalized levels.
Gaurav Sekhri
Hi, this is Gaurav here. We have seen because of higher freight rates and just generally there is some tightness of availability of raw-material at origins. We have seen some pressure on the on the pricing. A large part of it is really more because of freights and that is what has put pressure. To mitigate this, we are doing two things, three things actually. One, we are increasing our optionality on the type of tires that our plants have ability to process. If you recall, we were only a TBR recycler till about a year-ago, then we added a PCR recycling plant. We are now looking to add off-road tires also and to create ability to process off-road tires that is in the works to mitigate this. And we are always looking at new origins. Our investment in South Africa will also support creating a new origin to feed our plants in India. And thirdly, of course, there is also an initiative which has now been undertaken to pass-on some of these pricing pressures to the customers and we are seeking some price provisions.
Parikshit Kabra
Got it. So no, the — I understand that the raw-material prices can fluctuate and I’m just — and I don’t think we have the ability to hedge ourselves, but is this again due to time or even on an immediate basis, if our raw-material prices increase, we are not able to pass-on the cost to the customer.
Gaurav Sekhri
So we are — we are able to pass it on. You see, we also have to see some trends over a period of time and then decide to engage with customers and we have to be considerate of our customers as well. Now realizing that you know these prices more or less are stable and while there is some downward correction expected, which will be welcome, but I don’t think it will be very, very dramatic. So it is a very good time now to engage with customers and there is — we have a convincing argument and we’ve already started receiving some favorable responses on the price increase.
Subodh Kumar Sharma
See, I’m Subodh here Parikshit. So we are consistently requesting customer, as you know, with the EPR and everything in the practice, customer resistance is also by tire companies specifically on increasing the prices because they are always like EPR is also coming to you as icing on the cake. So why? But now with the dollar, now with the raw-material and the consistent request since almost now two months, we are seeing some positive impact on pricing from this quarter onwards.
Parikshit Kabra
Got it, sir. Thank you so much. So will it be possible for us to get some kind of guidance or at least a directional number of how we see this moving — moving back to higher levels than what may be according to you, stable levels to be expected?
Gaurav Sekhri
The EBITDA levels that we have achieved up to nine months, which is around 15%, 15.5%, we think that is the right kind of levels that we feel we can achieve with all the initiatives that we are putting in-place.
Parikshit Kabra
Got it. Got it. Understood. Thank you. I’ll come back-in the queue. Thank you.
Operator
Thank you. Participants who wishes to ask a question may press star and one. The next question is from the line of Aayush Rathi from Aditya Birla Money. Please go-ahead.
Aayush Rathi
Thanks for taking my question. Sir, first, could you provide insights into the planned utilization of the INR150 crore fundraise? Like what are the key areas where the capital will be deployed?
Gaurav Sekhri
Sure. I mean, we are going to use this money to — for our expansion plans in Saudi Arabia, South Africa. We are also looking at some expansions at our existing facilities, the PCMB business. These are the primary areas where we are looking for deployment of this money.
Aayush Rathi
All right. So the next question would be on the revenue front. So what percentage of the total revenue was contributed by the exports during the first-nine months of FY ’25? And continuing on that, looking ahead to FY ’26, because of the geopolitical scenario, how do I anticipate the export to domestic sales mix evolving in the next 50 years.
Subodh Kumar Sharma
So I’m Subodh here, Aayush. So from the export side, the volume growth we can see, we have grown almost 50% in the first-nine months, but on the basis of percentage of my total top-line as of now 5% is the value growth in the export for us.
Aayush Rathi
Okay.
Gaurav Sekhri
5% is our contribution of exports in our total turnover, even though we’ve grown about 50%.
Aayush Rathi
All right. This is on a Nine-Month number, right?
Gaurav Sekhri
Yes, nine months.
Aayush Rathi
All right. And looking ahead to FY ’26, how do you anticipate the export to domestic sales, like will it change significantly or it will remain at the same level?
Gaurav Sekhri
Gaurav here, see the — its contribution as a proportion to our overall business, it is hard to predict and tell you, but I am confident or we are confident that we will continue to grow at a very good clip because we see very good headroom in export growth. We’ve grown 50-odd percent this year. I expect us to maintain a very robust growth rate on exports.
Aayush Rathi
All right. And just extending my question, when we look at exports, so are the margins also better significantly from the domestic profession?
Gaurav Sekhri
Yes, they are.
Aayush Rathi
All right. All right. And next question would be on the Valley plant and the PC plant, when do you see both of them to reach optimal utilization level and according to what is the estimated optimization — optimal utilization rate as well? And how does it compare to the utilization level recorded in the Q3 FY ’25 for both Valley and PC plant.
Gaurav Sekhri
Gaurav here again. See, on the Valley plant, we have now reached a fairly stable production. I expect to bring in about INR100 crores of sales in the — in 12 months in the new financial year and that is in-line with what we have given you guidance earlier as well. The PCMD business, even in the coming financial year, we expect it to operate at around 60% capacity utilization towards the middle of next year because there is still some work to be done to stabilize the formulations and getting customers on-board product approvals and things like that.
Aayush Rathi
Okay, okay. And just last question, you had already mentioned about the decline in the margins and some one-offs. So just to confirm, 15.8% EBITDA margin is something — on a sustainable basis we can take for the modeling purposes, right?
Gaurav Sekhri
We believe so.
Aayush Rathi
All right. All right. Okay. Thanks a lot. All my questions have been answered. Thanks a lot and all the best for the future.
Gaurav Sekhri
Thank you.
Operator
Thank you. Participants who wishes to ask a question may press star and one. The next question is from the line of Nihal Shah from Prudent Corporate Advisory. Please go-ahead.
Nihal Shah
Thank you for the opportunity. So as we mentioned that because of the dollar rate and the supply of raw materials being a problem. So was it mainly from the raw-material that we import or it was from the local markets as well, the supply crunch?
Gaurav Sekhri
Hi, Gaurav here again. Both the — you know things are — the markets move quite closely, you know, in tandem. So the price increase has been felt on both domestic as well as the materials that we import.
Nihal Shah
Okay, so what is the difference between the cost there in the imports and ones procured from the domestic market? Can we give that number?
Gaurav Sekhri
See it is it could be anywhere between INR3,000 a ton to INR6,000 a ton in that range depending, you know, location-wise at the time of the year.
Nihal Shah
Okay, okay. Thank you. And one more thing that there is a 53% increase in the employee benefit expenses in this quarter year-on-year. So why would that be so?
Gaurav Sekhri
See, we have — there are two or three reasons. One, of course, the company, as you know, has grown from INR360 odd crores last year to about INR500 crores this year and we are really gearing up for our plan to reach INR900 crore INR1,000 crores by FY ’28. So we are getting new talent, hiring new people. We’ve got an ESOP plan in-place, which has — there is a provisioning to be done when you have a ESOP plan. So that has had some impact in our overall employment cost so plus we are building a whole new business of PCMP, which is — which is a new vertical and requires new talent. So all of these three or four things have come together and impacted our cost. But we believe it to be as investment in future.
Nihal Shah
Okay. So what do we expect the asset turnover to be for the new upcoming plants and the one that we’ve recently, I guess, the Varlay plant, how much do we expect that to give us?
Gaurav Sekhri
Asset turnover, if you ask me specifically and we have debt with this in the past as well. Usually we get 2.5 to 3 times revenue of capex at optimal capacity utilization. Okay. Okay. Thank you. Thank you very much. You’re welcome. Thank you.
Operator
Thank you. Participants you may press R&1 to ask a question. The next question is from the line of Sunil Jain from Nirmal Bang. Please go-ahead.
Sunil Jain
Yes. Thanks for this opportunity. Sir, was there any EPR contribution EPR certificate and sale contribution in this quarter?
Subodh Kumar Sharma
Yes, sir, Subodh here. So like I said in my opening speech, we have taken approx INR2.76 crores of this particular quarter, Q3 to our top and bottom-line growth.
Sunil Jain
Can you share the corresponding figure for last quarter and last year same quarter.
Subodh Kumar Sharma
So see, if you see, I mean, in the quarter one, we accrued that was uti for the last whole FY ’24 and in the Q2 what we accrued was basically for the two quarters together. So in this quarter, you will find like it is particularly for this quarter only. So this is for the nine months, we have accrued approximately INR24 crores
Sunil Jain
Nine months how much 24
Subodh Kumar Sharma
Correct.
Sunil Jain
But that was having figure of some last year also, but how much is for the current year nine months?
Subodh Kumar Sharma
So for the current year just a second. Yeah. So, Ravi, for the first nine months is around 6 to 7 cr approx.
Sunil Jain
Yes. And sir, this INR2.7 crores will be consistent now for all the quarter — coming quarters.
Subodh Kumar Sharma
Yeah, now on the quarterly basis, yes, because see if in the Q1, whatever we accrued, it was basically for the last two years.
Sunil Jain
Yeah. But is that realization also happening now?
Subodh Kumar Sharma
Yes, it is happening. And in fact, in the Q3 itself, we sold a decent numbers after approval. And going-forward in Q4 and Q1, we also expect to sell some of these units. We were waiting and holding the units in Q2 because there was a price correction was expected and it happened as per the policy and that we declared in our previous call also. So we have started transacting these available EPR credits.
Sunil Jain
And sir, the last question is related to import. Out of — I mean, how much raw-material we import and how much is domestic TV purchased? Any share you can — how much percentage if you can share?
Gaurav Sekhri
So it fluctuates for us, sir. We go with lease cost options at various plants, but I would say that we are about 70% on imports and about 30% domestic,
Sunil Jain
Okay. And what I understand that the transport — the freight cost which has increased earlier, is that coming down now or no?
Gaurav Sekhri
So we should see it. All the signs are there now for the freight to be — for freight rates to come down after the tension in Middle-East, et-cetera, is scaling down as well. So that should have a positive impact, but it’s early to say.
Sunil Jain
Okay, because your — in cost of procuring that raw-material from international market, the major cost is transport only because you have to just pick-up.
Gaurav Sekhri
That’s correct. That’s correct.
Sunil Jain
So any decline in that will be direct to benefit to us.
Gaurav Sekhri
Yes, yes.
Sunil Jain
Okay, sir. Thank you very much.
Gaurav Sekhri
Thank you.
Operator
Thank you. Participants, you may press star and one to ask a question. The next question is from the line of Viraj Mahadevia from Moneygrow India. Please go-ahead.
Viraj Mahadevia
Hi, Mr Sekhri, congratulations on running a tight ship on financial metrics. Given the various growth around the new plant getting operational, is it possible to deliver INR100 crores to INR1150 crore revenue growth in FY ’26 or ’25?
Gaurav Sekhri
Hi, Viraj, your voice is a bit muffled, but I think your question is that can — can the company add another INR100 crore 150 crores to top-line? Is that your question?
Viraj Mahadevia
Absolutely. Thank you.
Gaurav Sekhri
We are geared up. We would like to — we would like to believe that is possible. Our projections and our first business plan is also showing and indicating us to be north of INR600 crores in the coming financial year. But I would like for us to go through Q4 and Q1 to give you a guidance with more firm footing. But in the past, historically, very early in this year, we had told you that we expect our company to cross INR500 crores and we were at INR360 last year, which has happened. And I can tell you that we — with high degree of confidence that we believe we will cross 600 crores in FY ’26.
Viraj Mahadevia
My next question is, given the capacity expansions, do we have capacities that are still coming on-stream later this year, which will start contributing in ’27? And is FY ’27 really the inflection year in terms of your revenue growth for your ’28 targets?
Gaurav Sekhri
As mentioned earlier, Viraj, we have two, three things in the works already. The Saudi plant, we hope to become operational by the end-of-the year, it will start showing full impact in FY ’27. South Africa work is ongoing already and the scale-up in PCMD business is also going to be a very important contributor. So we have the sort of three new growth engines to bring in — bring in turbo growth into the business.
Viraj Mahadevia
Understood. And what will be — sorry, just apologies if it’s in the presentation, what is going to be the capex spend between Saudi and South Africa? I’m trying to figure out from an asset turn point-of-view, how much revenue can they can generate in-going.
Gaurav Sekhri
We don’t want to get too granular on some of these details on calls like this. But typically our CapEx-to-sales ratio is between 2.53 times. In India, it is more like 3 times from our plant it is more like 2, 2.5 times. So something similar will — will also come from Saudi and South Africa. And PCMB business, in any case, it’s a more expensive product. So it will have a larger impact on the top-line contribution.
Viraj Mahadevia
Understood. Thank you. All the very best.
Gaurav Sekhri
Thank you.
Operator
Thank you. Participants, you may press R&1 to ask a question now. The next question is from the line of Sunil Shah from SRE PMS. Please go-ahead.
Sunil Shah
Yeah. Thank you. Sir, my question is from the next two, three years point-of-view. Sir, how do you think this regulatory environment will be strong enough for the tire manufacturers to actually go about using this recycled products. So if you could give some direction about the trend of the regulatory pressure that’s been coming. Could you just share that please?
Subodh Kumar Sharma
Hello, here. So on the side of like regulatory pressure for the tire company, I don’t think we’ll have that large impact, but it’s a self-motivation by the tire company to go for the sustainable and green product. See, for the tire and all, it’s very, very complex products. So unless they are fully sure on the end parameter and the quality aspect, safety aspect, so no pressure is going to work. But yes, government definitely is considering the recycled rubber material usage for the infrastructure segment, like we have covered in our opening —
Sunil Shah
Sorry, sir, I’m not able to hear.
Operator
I’m sorry to interrupt, sir, we are unable to hear you.
Subodh Kumar Sharma
Hello. Am I audible now?
Operator
Yes, you are.
Subodh Kumar Sharma
Yeah. So I was mentioning like with the tire company, it’s a bit difficult to pressurize them to use more unless you — because there is a safety, there is other aspects in case of tires, but they are motivated to use more sustainable material. So it will grow but gradually, not like with the pressure or something. But in the infrastructure segment, the approach of the Ministry of Road Transports and the highways and all, so they are considering the recycled urban material more for the blending with the bitumen and that’s where the growth is also reflecting in our numbers from the infrastructure segment.
Sunil Shah
Thank you very much.
Operator
Thank you. Participants, you may press start in R&1 to ask a question. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants, we request you to please limit your questions to two per participant. If you have a follow-up question, you may rejoin the queue. The next question is from the line of Karan Gupta from InvestSavvy PMS. Please go-ahead.
Karan Gupta
Hello. Am I audible?
Operator
You’re sounding a little muffled,
Karan Gupta
Yeah, good afternoon, sir. Yeah, my question is regarding the margin profile of each product. So can you share the margin of individual products that we have?
Gaurav Sekhri
Karan, we have not shared this data in the past and we believe this information to be sensitive to company. So we don’t share — product-wise margins.
Karan Gupta
Okay. Okay. Fair enough. But comparatively, if you just give high and low kind of indication across the products in terms of margin, which is available?
Gaurav Sekhri
Let me attempt the question. See, products like micronized rubber powder tend to deliver higher margins versus a regular crumbed rubber powder because that is more of a commoditized business and in terms of segments as well, the consumer segment, which largely takes different types of crumb rubber, you know, tends to have lower margins and the industrial segment, which is really catering to tire manufacturers as well as conveyor bed or more complex products, then you could give us.
Karan Gupta
Okay, okay. And what do you think about the tire prices oil market, what are the opportunity you are seeing there if you want to add this product in your portfolio?
Gaurav Sekhri
Sure. Sure. See it’s more a different form of recycling paralysis. Up until now we at least did not come up — come across technology which was environment-friendly and scalable in nature and therefore we resisted. And as per various studies done, the most prime example of circularity is material recycling, which is our business today. Saying that, lately, I believe the — there are some better technologies for available. We are looking at them, we are evaluating them. And I think we are getting to a position where — where we are now more convinced about this business than we were before and it’s something that we are considering.
Operator
Sorry to interrupt. May I request Mr Karan Gupta to please rejoin the queue. We have participants waiting for the turn. Thank you. Participants who wishes to ask a question may press star and one. The next question is from the line of Aakash Javeri from Time & Tide. Please go-ahead.
Aakash Javeri
Hi, team and good afternoon. Thank you for the opportunity here. My first question is that if I see infra sales of industrial sales for Q3 FY ’25, which is about INR50 crores —
Operator
Sorry to interrupt you, Mr Javeri, but we cannot hear you that clearly, sir. Can you switch on your handset mode, please?
Aakash Javeri
Hello.
Operator
Yes, please go-ahead, sir.
Aakash Javeri
Yeah. So if I see our infra sales for Q3 FY ’25, I’m getting about INR50 crores worth of sales. And if I compare that to Q3 FY ’24, it’s more or less coming flat. Am I missing something here? Have we not been able to grow just in Q3, I’m not talking nine months, just to read last year versus Q3 this year, could you just throw some light on that? And is my calculation correct?
Gaurav Sekhri
Your question is in relation to the infra business, right?
Aakash Javeri
Infra and in both the divisions, I’m not being able to see a lot of growth year-on-year in Q3 FY ’25 — Q3 FY ’24
Gaurav Sekhri
Let us come back to you on that. You can maybe mail us your — you know this question and we will inform you of the of the growth in Q3 has performed quite well. So there is growth, but just to compare the quarter-wise growth, why don’t we come back to you on that?
Aakash Javeri
Sure. And the second question was, could you throw some light on the competition landscape in our infra and industrial sales divisions?
Gaurav Sekhri
Can you be more specific, please? What are you trying to ask?
Aakash Javeri
My question was like based on my calculation, if not that much growth, then is a lot of competition that has come in the last one year which is kind of affecting our growth?
Gaurav Sekhri
I don’t know-how you are reaching that conclusion. I mean, in my opening comments also, I had mentioned some growth numbers that we have experienced year-on-year and our top-line, you know we have achieved INR370 odd crores of sales in nine months versus INR365 last year. So the growth there. I don’t know from where you are picking-up that there is no-growth. But if maybe we are not understanding your question properly, if you nail us your question, maybe we can address it better.
Aakash Javeri
Yeah, I’ll do that. Thank you so much.
Operator
Thank you. Participants may press in one to ask a question. The next question is from the line of Divy Agrawal from Ficom Family Office. Please go-ahead.
Divy Agrawal
Hi, sir. Thanks for taking my question. So sir, in the opening remarks as well as in the presentation, you have mentioned that you are seriously evaluating other avenues of revenue generation and will deploy some capex in Q4 FY ’25. So can you throw some light on that? Which are those avenues, sir?
Gaurav Sekhri
You know, as mentioned, our focus area is to get our Saudi business up and running as fast as possible. Also stabilize our operations in South Africa, a scale-up of PCMD business now that our product R&D and development is more or less at completion stage and initial supplies have already gone. So this will remain our focus in Q4 and onwards.
Divy Agrawal
Okay. And previously you mentioned that you are looking into getting into TPO and so will you be also getting into RCB?
Gaurav Sekhri
Very much so. I mean this is something we are evaluating. See, everything starts with the paralysis process from where one will get the carbon black to then convert into recycle carbon black. So those technologies are under evaluation. We are keeping an eye on it.
Divy Agrawal
Right. And I believe some of this —
Operator
Mr Agrawal, may we request you to please turn to the queue.
Divy Agrawal
Sure. Thank you.
Operator
Participants, you may press and one to ask a question now. The next question is from the line of Smita Mohta from Kredent InfoEdge. Please go-ahead.
Smita Mohta
Hello. Can you hear me, sir?
Gaurav Sekhri
Yes, yes. Please go-ahead.
Smita Mohta
Thanks. Yeah. So basically my question was pertaining to the last con-call that you had taken where you revenue would be possible for FY ’25. So that is my first question. Second of all, with the input of tariff by US on metal products and all, so as we were thinking of increasing our non-rubber business, which is a high-margin business, would that be getting affected at all with all of these? So just these two questions, sir.
Subodh Kumar Sharma
Can you please repeat? There was a brief moment in-between when we couldn’t hear you.
Smita Mohta
Hello.
Subodh Kumar Sharma
Yeah, can you repeat your question please?
Smita Mohta
Yeah. So first question is that we were supposed to complete this FY ’25 with INR500 crores of revenue. So would that be possible first of all? Second of all, we were supposed to increase our non-rubber business, which would be a high-margin business. So with tariff implementation by US, would that be affecting our product and sales at all-in the automobile segment?
Gaurav Sekhri
So the answer to question one is we are very much on-target to cross INR500 crores. And the answer to the second question is that, no, we are — our business and projections are not dependent on this regulations that you are mentioning.
Smita Mohta
And what about the TP Build business? How much of revenue and growth have we done in that?
Gaurav Sekhri
TP business this year will probably end at around INR80 crores to INR85 crores of revenue versus approximately INR60 crores last year. So the growth has been very satisfying. Also, there is excellent margin improvement in that business where it is now operating at between 18% and 20% EBITDA.
Smita Mohta
So how much is that compared to our total business?
Gaurav Sekhri
How much is that, sorry?
Smita Mohta
How much is TP compared to our total business of our company?
Gaurav Sekhri
TP is isn’t — you know our Tina Raba owns about 48.5% in the company. So its top-line is not included in Tinna Rubber. That’s point number-one. So it’s two separate businesses, it’s a separate company. And point number two, TP Buildtech has its own excellent growth trajectory plan, especially with the business now operating at a very healthy margin. New products are being considered to add to our portfolio and also set-up couple of new plants. So all of that is in the works. And the good part is they will be able to do most of it and all of it probably just with internal accruals and some debt. So it doesn’t need any further equity from Tinna Rubber.
Smita Mohta
Okay. Last question, sir. Yeah. Last question ma’am, can I ask?
Operator
Please go-ahead.
Smita Mohta
Yeah. So my last question, sir, for the raw-material, normally, if the rubber prices increase, the automobile companies want more of recycled rubber for making their own product. But however, we have found out currently that because of high inventory and high rubber material prices, our margins went down and sequentially if we are seeing core Q-on-Q, this is going down. So going ahead, is it going to improve? Do you see that — foresee that in future?
Gaurav Sekhri
Our fortunes to some extent are you know, completely aligned with that of the tire companies. So that is a given. If they see good growth, we also see good growth. When they have some growth challenges, it is to have a hedge that we have these other segments and we have also taken a lot of pride in mentioning that we are unique in that respect — in respect. We are not dependent on just one sector. We have an industrial segment, infra segment, consumer segment, which enables us to have a good hedge. So yes, it does impact us, but not to an extent that it compromises our overall growth. In regards to cost pressures, et-cetera, that is more end-of-life tires and we don’t have that much of a correlation with natural rubber prices.
Smita Mohta
Okay. Thank you, sir.
Operator
Thank you. Participants who wishes to ask a question may press star and one. The next question is from the line of Raj Lakhani, an individual Investor. Please go-ahead.
Raj Lakhani
Yeah. Thank you for the opportunity. So my question is how difficult is it to source in this space? And since 70% as you mentioned at 70% of the procurement is from imports going from —
Operator
Sorry to interrupt you, but you are not clearly audible, sir. Can you please repeat your question?
Raj Lakhani
Hello. Is it better now?
Operator
Sir, you’re sounding very muffled.
Raj Lakhani
Hello.
Gaurav Sekhri
That’s okay. We’ve been try to answer it. Please go-ahead.
Raj Lakhani
Okay, okay. So sir, my first question is, so how difficult is scrap sourcing in this particular space? And as you mentioned that 70% of procurement is from imports. So going-forward, what would be the mix of procurement and how is tyre market currently in India shaping up?
Gaurav Sekhri
See, in regards to our percentage of sourcing from India or overseas, I don’t see a very major change in the ratios going-forward. But I think eventually over medium-to-long term, it’s highly likely that we will — we will be using a lot more domestic tires and to mitigate challenges sometimes in the tires that we import, we already work with about 10 or 11 different origins and we continue to seek to add new origins in the mix and then we work on the lease cost basis. So this is what has worked for us and we continue to be aggressive in this area?
Raj Lakhani
Okay. And sir, the follow-up question. So how is currently the Indian scrap availability market is shaping up? So like largely it is informal or something like that. Any —
Gaurav Sekhri
I guess everything is more organized thanks to the EPR policy implemented by government, nothing in our country goes for waste, everything gets used. However, now with the EPR policy in-place, we hope it will result in more environmentally desires form of recycling. In other words, it will come to people like us rather than it getting burnt illegally in brick kills or going to, let us say, some pyrolysis plants which are not following proper environmental and safety norms. So that is — that is the benefit that we think will — will be accrued to organized players like us and the whole collection process will also get more organized.
Raj Lakhani
Okay. Okay. Thank you, sir. Thank you so much.
Operator
Thank you. Participants, you may press to ask a question. The next question is from the line of Chandra Gupta, an Individual investor. Please go-ahead.
Chandra Gupta
Yeah. Hello. Am I audible?
Gaurav Sekhri
Yes. Please go-ahead.
Chandra Gupta
Yeah. Okay. Sir. So the first question is on this new PCMD vertical which you mentioning. So can you give us some idea about what exactly is this product, what are its applications and some background about how much is the size of the opportunity over here?
Subodh Kumar Sharma
Yeah, Mr Chandu, this is Subodh here. So business is a new vertical, which we started. I think our machine got commissioned March 2024 and we took quarter one, quarter two to stabilizing the formulation and all. So idea is basically to develop something which is blend of plastic and the recycled rubber. Plastic by nature is 100% rigid material and with little bit of rubber to it can give you elasticity and the cost-benefit as well. So we are working in that space and the application could be anything like pallets, industrial dust bins and many more in the automobile sector. So this is the vertical. And till now like we covered in our opening speech, we were operating this business up till now around 15% of capacity utilization. And going-forward, by end of H1 FY ’26, we expect it to operate at around 60% of capacity utilization. So that will give us the confidence and that’s the idea of further expanding this business to other locations. As you know, we have already five plants in India, North, East, West, South and out of India, we are operating in Oman. So we are also — it’s a testing phase for us to stabilize this business at one location. And once when we are through with this, we can easily cut copy, paste at the other location, further expand and strengthen this business. Hope I could reply you to your satisfaction.
Chandra Gupta
Yeah, yeah. So how much is the investment into this and how much we are expecting as a revenue in the long-run?
Gaurav Sekhri
Sir, at the moment, we have spent under INR10 crores in-building a pilot-scale plant and in the coming financial year, we expect that we will allocate another about INR15 crores to scale-up this business.
Chandra Gupta
Okay. And at how much revenue potential it has?
Gaurav Sekhri
In the coming financial year, we are expecting approximately INR45 crore INR50 crores to be contributed by the PCMV business.
Chandra Gupta
Okay, okay, fine, thanks. Okay. The second question is on this EPR credits, which we are doing on accrual basis. So can you give the figure how much we have actually sold-in the quarter?
Gaurav Sekhri
So we have sold 3.5 crores worth of credits. So look, like we mentioned in the Q3, we accrued around INR2.76 crores and whereas we sold around somewhere close to INR5 crores worth of credits.
Chandra Gupta
Okay. So that includes some of the earlier accruals also, is it?
Subodh Kumar Sharma
Like that’s how you do combining all the quarters out of which and we are talking here about the Q3 accruals, 2.76 worth of
Chandra Gupta
Okay. But is there a possibility that when we are doing this accrual, is there a possibility that we — we may not be able to sell it and it will lead to some reversals in the future, is because we are continuing to accrue, but I believe there is some issue with the — with actually executing the sale because there is a resistance from the tire manufacturers and on.
Gaurav Sekhri
So as per the policy, I mean this trade can happen for the two years for all the accrued points, number-one. Number two, at my side, like we mentioned, we are dependent — our product buying policy is 70% of import and 30% of domestic. So we also have our own obligation towards sets off our EPR obligations against import.
Chandra Gupta
Yeah, I know my question is like or if you can give me some number on since we started last year, from last year till now, how much we have accrued and how much we have sold total accumulative, if you can share such a number.
Gaurav Sekhri
Sir, why don’t you just send us a mail? I think we will respond to you. But our run-rate of credit that we’ll accrue will be — at this point of time, it seems approximately about INR3 crores a quarter. That’s point number-one. And second, there is no challenge we have felt as of now. We have sold all our credits to some of the most marquee names and who are our customers. So we don’t expect any challenges in selling them also. We are holding inventory because we do expect the prices to improve on the credits.
Operator
Thank you. The next question is from the line of Atharva Shiledar, an Individual investor. Please go-ahead.
Atharva Shiledar
Sir, am I audible?
Gaurav Sekhri
Yes, yes
Atharva Shiledar
Actually I want to note that in your PPT, you mentioned discussion initiated for a price increase with the customers, impact will be visible from Q4 FY ’25 onwards. So do you think we have bargaining power to bargain our terms.
Subodh Kumar Sharma
Yes, very much, sir. And you know, in fact, this whole exercise has started from the — at the time of closing of last quarter and we are seeing the visible impact from the January onwards and we see there is a positive impact when we shall be completing this quarter and that will be visible when we are going to declare our next quarter results.
Atharva Shiledar
Okay, sir. And sir, last question is, and how do you see margin in-going forward for FY ’27 vision, sir
Subodh Kumar Sharma
FY ’27 you’re talking about?
Atharva Shiledar
Yes, sir.
Gaurav Sekhri
Yeah. Hi, Gaurav here. We are aiming, we have given in our vision that our aim is to get to 18% EBITDA margin, but we are at around 15.5%. So we expect to be in this range. In the coming financial year, we think 15.5%, 16% is more achievable, but our desire is to go up to about 18%.
Atharva Shiledar
Okay. You mean it is possible to reach 18% that you guided for FY ’27.
Gaurav Sekhri
That is that is our vision that we have mentioned almost a year, year and a half ago, yes.
Atharva Shiledar
Okay, thank you so much.
Operator
Thank you. Participants who wishes to ask a question may press star and one. The next question is from the line of Karan Gupta from InvestSavvy Portfolio. Please go-ahead,
Karan Gupta
Hi. Thanks again. Again, my question will be related to this CPU side. What are the opportunity and market size you are seeing if you are evaluating this segment? That is one. Second is, can you just share the revenue percentage of your reclaimerable segment in industrial?
Gaurav Sekhri
Your first question I think is relating to TPO, right?
Karan Gupta
No, pyrolysis, not processing.
Gaurav Sekhri
Pyrolysis.
Karan Gupta
Yeah.
Gaurav Sekhri
Yeah, pyrolysis, the product is TPO, which is tyre process well. The — it is something we are evaluating very seriously. Like I said, we have higher confidence now than what we had before in terms of clean, good, scalable technology being available. And once the technology is verified, validated, we think the opportunities are immense because there is opportunities in recycled carbon black. And of course, in the oil, which is recovered, there is a ready market. In fact, we see a very good correlation in our existing customer-base of road contractors because all your hot mix plants are fairly large users of this oil. And so we see some benefit there because we are already supplying our modified bitumen and those kind of products to road contractors. But it’s call we will take-over the next couple of quarters. That’s point number-one. And can you — can you just remind me of your second question, please?
Karan Gupta
Your revenue percentage of reclaimed rubber and what is — and what’s the industry margin there?
Gaurav Sekhri
Our revenue from business is only about 10% of our overall top-line.
Karan Gupta
Okay, okay. And can you share the margin industry margin?
Gaurav Sekhri
We don’t share product-wise margin, sir.
Karan Gupta
Okay. Okay. Thank you.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for closing comments.
Gaurav Sekhri
Thank you very much and appreciate everyone who has participated today. We sincerely appreciate you giving your valuable time to this conference call and trust that we have effectively addressed all your queries. If you require any further information or have additional questions, please feel free-to contact our Investor Relations team at Go India Advisors. Once again, thank you for your engagement and continued support.
Operator
Thank you. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us and you may now disconnect your lines.