Dhabriya Polywood Limited (538715) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Dhabriya Polywood Limited's Q4 FY '25 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Sumit Jha from X-B4 Advisory. Thank you, and over to you, Mr. Jha.

Thank you. Good afternoon, everyone, and welcome to the Quarter 4 and Financial Year '25 Earnings Conference Call of Dhabriya Polywood Limited. Today on this call, we have with us Mr. Digvijay Dhabriya, Promoter, Chairman and Managing Director; and Mr. Hitesh Agrawal, Chief Financial Officer. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations as of today. Actual results may differ. The statements are not the guarantees of future performance and involves risks and uncertainties that are difficult to predict. A detailed safe harbor statement is given on the second page of the earnings presentation of the company, which has been uploaded on the stock exchange as well as company's website as well. With this, I now hand over the call to Mr. Digvijay Dhabriya sir for his opening remarks. Over to you, sir.

Okay. Thank you. Good afternoon, everyone. We welcome you all to the earning call for the quarter 4 and for financial year '25 of Dhabriya Polywood Limited. I trust all of you have had a chance to go through our financial results and investor presentation, which we have uploaded on the company website and the stock exchange. Financial year '25 was a year of solid execution and strategic progress. Our performance reflects the strength of our multi-brand strategy, the scalability of our manufacturing and design capability and our firm commitment to innovation and sustainability. We remain focused on the driving profitable growth, improving operational efficiency and delivering value to all stakeholders as we move forward. Now let us -- now let me tell you all about some key developments and the tailwinds in the PVC and the uPVC building material industry. The sector continues to benefit from macroeconomic fundamentals such as the rapid urbanization, a rising disposable income, a growing preference for the eco-friendly material and robust real estate growth, particularly in the Tier 1 and Tier 2 cities. India's real estate sector is expected to witness substantial expansion over the coming years, driven by a demographic shift towards nuclear families, increased NRI engagements and easier access to housing finance. In parallel, the uPVC doors and windows segments are experiencing steady growth, supported by the rising demand for the low-maintenance and energy-efficient alternatives to traditional materials. Similarly, the furniture segment, including PVC-based and the modular solutions, continues to gain traction due to its affordability, durability and sustainability. Consumer preferences are increasingly moving towards modular and customizable interior solution, which offer aesthetic appeal, space efficiency and quick installation. This trend strongly complements our offering under the Studio Arezzo and Dynasty Modular Furniture brands. Our commitment to sustainability, supported by a portfolio of design patents and innovation-led products line, continues to give us a meaningful edge in the market. During the financial year '25, we actively participated in 10 major business exhibitions across key metros and Tier 2 cities, which played a significant role in driving brand visibility and generating quality business leads. Looking ahead, we have already finalized our participation in 9 exhibitions for the current financial year, further demonstrating our commitment to outreach and industry connect. Marketing and promotional activities have also been a meaningful scale-up. Our marketing and sales promotion expenses stood at INR 3.26 crores in financial year '25, reflecting a 50% increase over financial year '24. This elevated investment has translated into stronger market penetration and improved customer recall, especially for our fluted and soffit panel and eco-friendly modular furniture product line. Accordingly, our presence across social media and digital platforms continues to be strengthened, enabling us to connect with younger design-conscious audiences and leverage real-time engagement. This omnichannel strategy has been instrumental in positioning our Studio Arezzo and Dynasty brands as the leading names in the modern modular interiors. On the product front, we are witnessing robust traction in fluted and soffit panels segment that are becoming increasingly popular for their aesthetic appeals and functional utility in both residential and commercial applications. We continue to maintain a healthy order book of over INR 140 crores in our project-related business, which now accounts for approximately 30% of our overall revenues. This provides us with a strong revenue visibility and underpins our confidence in sustainable growth. Looking at the future, we are planning a capital expenditure of INR 50 crores to INR 60 crores over the next 2 to 3 years, primarily towards establishing a dedicated manufacturing facility for the WPC doors and enhancing capacity at our Southern India plants. This investment will be financially largely -- this investment will be financed largely through internal accruals, reflecting our strong cash generation capabilities and prudent capital management. In recognition of the company's robust financial performance and healthy balance sheet, Dhabriya has recommended a higher dividend of 7% compared to 5% in each of the past 2 years. This move is a token of appreciation for our shareholders' continued trust and support. With these strategic initiatives and financial discipline, we remain confident of sustaining our growth momentum and creating long-term value for the stakeholders. Thank you. Now I hand over the call to our CFO, Mr. Hitesh Agrawal, for financial comments. Over to Mr. Hitesh. Thank you.

Yes. Thank you, sir. Good afternoon, everyone. We are pleased to report that Q4 FY '25 reflected healthy progress, showcasing the effectiveness of our diversified product portfolio and customer-centric execution. Our consolidated revenue stood at INR 63.47 crores, registering a healthy year-on-year growth of 15.9% compared to INR 54.78 crores in Q4 FY '24. This growth was driven by demand across all our product segments. The company's EBITDA for the quarter came in at INR 10.23 crores, a 17.5% increase over the same period last year. EBITDA margin stood at 16.1%, reflecting an improvement of 20 basis points year-on-year. This margin expansion is attributable to better product mix, improved operating efficiencies and consistent pricing discipline. Profit after tax grew by 32.3% year-on-year, reaching INR 5.38 crores, up from INR 4.06 crores in Q4 FY '24. The PAT margin also improved by 110 basis points, increasing to 8.5% level compared to 7.4% in the same quarter of the previous year. The quarter's commendable finish was driven by the management's focused effort on strengthening operational capabilities and enhancing bottom line performance. For the full year FY '25, our revenue from operation stood at INR 235.11 crores, an increase of 11.1% over INR 211.63 crores in FY '24. The company's EBITDA expanded to INR 37.50 crores, reflecting a 20.9% year-on-year growth. Our EBITDA margin for financial year stood at -- financial year '25 stood at 16%, up by 130 basis points from the 14.7% in FY '24, supported by both operating leverages and our focus on high-margin product categories. On the profitability front, PAT for the year was INR 18.3 crores -- INR 18.03 crores, a strong 28% increase over INR 14.08 crores in FY '24. This led to a PAT margin expansion of 100 basis points, taking the margin from 6.7% to 7.7%. These results underscores the resilience of our business model and the scalability of our diversified operations. Let me now walk you through the segment-wise performance, beginning with Q4 FY '25. In Q4 FY '25, PVC Profile recorded revenue of INR 37.07 crores, registering a 20.4% growth. uPVC Window revenue grew by 5.1%, reaching to INR 14.84 crores. Modular Furniture reported revenue of INR 11.56 crores, growing by 17% year-on-year. For the full year FY '25, PVC Profile contributed INR 135.11 crores, a growth of 10.4%, and continued to be the highest contributor to our top line. uPVC Windows delivered revenue of INR 59.83 crores, up by 10% year-on-year basis. Modular Furniture posted revenue of INR 40.17 crores, up by 15.4%. The revenue mix contributes -- continues to diversify with PVC Profile accounting for around 58%; uPVC Windows, 25%; and Modular Furniture, 17%, of the total revenue in FY '25. We are happy to share that our order book remains robust, exceeding INR 140 crores with a strong traction in institutional and builders projects, particularly within our uPVC windows, aluminum windows and modular furniture categories. Thank you all. Now we can open the floor for the questions.

[Operator Instructions] The first question is from the line of Pritesh Chheda from Lucky Investment.

Sir, can you just share what were the hits and misses for FY '25? Where do you think you lag behind or where do you think you move materially ahead, if you could share that? And for FY '26, how do you see the growth shaping up?

Yes, FY '25, we have achieved the top line of INR 235 crores, which is about 11% from the previous year, FY '24. See, we had expected some higher figures in that year. But as we mentioned in our previous earnings call, due to certain factors which were beyond our control like extended rainy season and then certain restrictions on the construction activities, particularly in Delhi NCR region, which went up to around 40, 45 days, so these 2, 3 factors, basically, we have compromised some of the revenue, particularly from the project business related to uPVC windows and modular furniture because during that period, the on-site executions were totally stopped. So that was the reason. And going forward, we are quite optimistic. In fact, whatever the vision we have taken earlier, the long-term vision, which we had shared earlier that going forward, for the next 4, 5 years, we have to grow with a certain percentage. So we stick to that. And looking to the current order book, the market response, other multiple efforts towards penetration in different segments, so going forward, growth -- good growth is expected as well.

Mr. Chheda, do you have any further questions, sir? Mr. Chheda, we are unable to hear you right now.

Okay. You can hear me now?

Yes.

Okay. Sorry, sir, I missed you. For FY '26, what did you say you will grow?

Yes. Projection what we have earlier estimated to grow with the long-term vision of 25% year-on-year growth. See, if you see our last 3-years performance, we have grown by 21% CAGR basis. So going forward also, we are quite optimistic to cross this average of growth basically. So 25%-plus growth we will see in the coming year also.

Okay. This INR 140 crore order backlog that you mentioned, what was the order backlog same period last year so we can know the growth in your backlog?

Yes, almost same figure basically, that INR 140 crores. So in fact, in mid of the last financial year, it was around INR 135 crores. So we are adding new orders and regular execution is happening. So as on 1st April of this current financial year, so unexecuted order value basically, that is on the same level of around INR 140 crores, so which had a product mix of uPVC window and aluminum window of around INR 99 crores and remaining is related to modular furniture business.

Okay. And just can you, for FY '25, give the breakup again, the fluted panel door, uPVC window and furniture?

Yes. FY '25, see, overall revenue breakup for this, PVC Profile, which is around 58% of total revenue, and 25% came from the uPVC Window and around 17% is from the Furniture segment. So...

So sir, can you -- sir, can you give the absolute revenue number and the Y-o-Y growth?

Yes, absolute number and the Y-o-Y growth, that also I'll just give you. So for this PVC Profile that -- which is our B2B business segment, so here, we did the business of INR 135 crores against the INR 122 crores in previous year, FY '24, registering a growth of around 10%. And for the uPVC Window, it's almost INR 60 crores against the FY '24 figure of INR 54 crores. So here also, that growth was 10%. And in Modular Furniture, we registered a revenue of INR 40.17 crores in FY '25 against the INR 34.81 crores in FY '24. Here, the growth was a little higher, it was 15%. And in fluted panel, fluted and soffit, both are from the same segment, so total revenue in FY '25, it was around INR 44 crores in FY '25 against the INR 30 crores in FY '24.

Okay. So fluted panel grew 50%?

Yes. Fluted panel is INR 44 crores, sir.

Yes. So any reason why our core original product of PVC Profile grew, let's say, low-single digit?

See, in PVC Profile, also there is a growth. See, this fluted panel, as we mentioned earlier also, this is a ceiling and paneling application. Earlier, it used to be low-cost, single-layer PVC profiles. So now it has been upgraded with the patented designs and certain other solutions by which we can cater to the middle- and upper-class residences and [ formal spaces ] also. So here, the growth is more. And in fact, our focus is also on the high-margin, value-added products. So in those segments also, there is a growth. And similarly in the fluted panels, the ceiling and paneling application, we can say that it is contributing more as compared to the other products.

[Operator Instructions] The next question is from the line of [ Deepak Verma ] from [ Ayodhya Investments ].

I had a couple of small questions. One is, what would be your maintenance CapEx figure annual? Any approximation?

Sorry, can you repeat, sir?

CapEx, capital expenditure that goes towards maintenance of assets?

See, CapEx expenditure for this FY '25, see, the maintenance CapEx...

Or maintenance...

Yes, maintenance CapEx is generally in the range of INR 3 crores to INR 4 crores annual basis, wherein we have to upgrade or replace certain process-related machines.

Understood. The other question is, if we look at these segments, which segments do you see growing fast? And what kind of returns on invested capital, if you could do a comparison?

See, basically, we bifurcate this in all our 3 segments that our major focus and major revenue contributing segment is PVC Profile extrusion where we make the door profiles and furniture profiles and this fluted and all. So here, the CapEx is more. And in fact, this particular segment requires more CapEx also. If we have to add certain capacities and in monetary terms, capital expenditure is higher as compared to other 2 segments.

Okay. So you're saying current CapEx, current and maybe near term?

Yes.

And in terms of return on invested capital, which segment would fare well as compared to the other 2?

See, as I said that we can say more return on capital investment will come from the uPVC Window and Modular Furniture because their capital -- CapEx amount is lesser, lesser CapEx is required to generate the revenue, but...

Yes, higher EBIT or something. I meant to say EBIT.

EBITDA side that higher margins -- margins are almost same in all 3. Yes, currently, in our case, in the furniture, EBITDA is a little bit lesser because...

I'll just explain myself further. What I'm looking at is very, very roughly speaking, EBIT, earnings before interest and tax divided by whatever investments on average you make per segment. There, that's the comparison I'm looking at when I'm looking at ROIC, roughly.

Roughly, we should be around maybe 20% plus.

I meant segmental comparison, sorry. Overall...

Yes, almost -- see, 1% or 2% differentiation is there; in the furniture, it is lesser; and then second one is the uPVC Window; and better margin is in this PVC Profile segment because here, the value-added products are there and the working capital cycle is a bit higher over there. We can protect more.

Okay. So we're saying that ROIC is higher in PVC Profile versus the other 2, and the investments are also going there only versus the others...

Yes, yes.

And growth prospects also you're saying are better?

Yes, growth prospects, yes. I mean growth prospect, yes, in all 3 verticals is there, and more growth is coming up from this PVC Profile in monetary terms. We see that it is contributing around 58% of our overall revenue. And so...

Well, I see it's been declining -- over the years, it's gone down because Modular Furniture has taken over the...

See, Modular Furniture, as you mentioned earlier also that earlier, we were focused on B2B or institutional supplies only. Last 3 years, we have shifted -- we have added the project business also for Modular Furniture. So that is contributing now.

[Operator Instructions] We'll take the next question from the line of Manan Madlani from KamayaKya Wealth Management.

So my first question is, what's the utilization rate for the current year? And what's the CapEx number are we planning for next year?

The capacity utilization for this PVC Profile extrusion, it was around 53% in current -- last financial year, FY '25, based on the increased capacity because we had done the capacity expansion in last financial year. And for the uPVC Window, it was 40% capacity utilization last financial year. Furniture, as we have been mentioning earlier also, because it is a nonstandard kind of formulation, so there is no rated capacity applies in that furniture. And your second question related to the CapEx in next 2 years. As our CMD sir mentioned in his introductory speech that the company is planning to invest around INR 50 crores to INR 60 crores going forward in next 2 to 3 years for new product addition capacity -- sorry, can you repeat?

Yes. This INR 50 crores to INR 60 crores will be split over 2 to 3 years or each year we'll spend this amount?

Yes. Each year, see, that for particular -- this particular year, we can take around INR 15 crores of CapEx if the things get speed up because we are working on certain new product addition, as mentioned, that WPC door. So that project is going to be lined up in this financial year if it happens within -- before March, and maybe that CapEx for current year will be a little higher. But yes, for next 2 to 3 years, we have made a longer plan. So in that, we are going to add some capacities also for the extrusion, particularly in South India where the market is really good and for WPC doors and other certain product solutions also.

Okay. And my second question is on Arezzo Studio. So in PPT, I can see that there are 4 showrooms available. So is it related to Arezzo Studio?

Yes. See, 4 showroom -- these 4 showrooms are not exclusively related to Arezzo Studio. Arezzo Studio exclusive showrooms are 2: one is in Jaipur and second one is in Gurgaon. And the rest 2 are our application center, which belongs to entire range of the product of the group, including Studio Arezzo range also.

Okay. And we are adding 2 more stores in like Q2, right?

Yes, for the current financial year, FY '26, we have planned for the 2 more studio -- Studio Arezzo to be planned.

Where are you planning to add these stores?

Yes, these -- one in Southern India, we are planning, and the second one maybe in Western region only. That location is yet to be decided.

Okay. So what's the plan going ahead like in next 2 to 3 years? Are we accelerating to adding these kind of studios more and more? Like what's the plan here?

See, furniture segment, since we started this model of furniture working through projects for the real estate, we have seen a very good response, and it's been reflected in our figures also for the Dynasty model of furniture business. And similarly, for the Studio Arezzo, we are -- since we are -- we have already built up the capacities. We have added several high-end machines here and entire design teams and all. So range is there. So going forward, the plan is there to enhance this studio. But as of now, we are going slow and steady, particularly in Studio Arezzo segment. So 2 studios are planned for current financial year. Maybe going forward, we will speed it up based on the market response.

Okay. So this will be like the, what you say, the client side of the studio, right? So people will come there, see the products and they'll buy it from the distributor or dealer, whoever is there.

Well, yes, see, this studio, we are having the complete display of our product range, and we have a big digital library over there. We will design -- we can design the solutions in front of the customer itself as per their requirement. We have made a long library of...

Standard and nonstandard.

Standard and nonstandard solutions both. So...

The standard solutions we are providing to the small customers and the delivery time, we are shortening the delivery time. So in front of them, suppose a person is coming with a flat -- design of his flat, we will design the entire furniture in front of that and show him all the colors, designs, materials and quotation at the same time and make all the executions within a limited time period so that they will not disturb -- and they can save their time because all the couples are working nowadays, they don't have time for running around the execution of the interiors.

Okay. So this is a very exciting segment, like if you -- even if you see the metro cities only, this segment can become huge for the company. So how are we planning to compete with unorganized players because there are many unorganized and even big organized players are into modular furniture? So how are we competing with them like on the basis of prices or -- timing you already mentioned, but other than that, what's the strategy here?

See, primarily, it's based on the design and execution. See, only thing that what range of products we are having seen -- yes, you rightly mentioned that furniture industry has more unorganized players in this. But there that you will not find all kind of the finished solutions that upgrade latest designs and patterns with the unorganized players. Being an organized player, having the presence all over India, digitally available to everyone and with physical infrastructure to visit us and to see the product physically and then get it designed there itself, so all those features definitely differentiate us with the unorganized players. And since we have the execution capabilities working with the large builder/developers and architect teams, so that also give us the edge to compete with others.

We'll take the next question from the line of [ Havesh Johan ], an individual investor.

Sir, with more than 20% sales growth that we are expecting in FY '26 and even going forward, what is our guidance on margin? Should it sustain at current levels?

Margin side, see, the gross and EBITDA both, we have been putting regular efforts to maintain this. And you can see it from the continuous performance of last 4 to 6 quarters. So we have been improving it on both the fronts. So we are confident that these margins can be easily maintained going forward also.

Okay. And in terms of the sales growth, should it be, over the next 3 to 5 years, should it be more than 20%?

Yes, it should be. And in fact, we have mentioned it earlier also and the kind of the product range what we have developed, the infrastructure in terms of our showrooms, depots and all and the market scenario that real estate growth and all those factors give us the confidence that this much growth is definitely achievable.

Great. And sir, last year, we did very well in terms of managing our debt. So I can see year-over-year, it's around INR 53 crores, more or less stagnant. So going forward, how should it be?

See, in fact, the regular expansion is happening. In fact, we see that in last year also, we have done around INR 12 crores of CapEx in the different segments and also the maintenance CapEx part. So yes, we are working on reducing the debt also. Regular repayments are happening. And going forward, in next 4 to 5 years, in fact, we have the plan to be debt-free also.

The next question is from the line of Madhur Rathi from Counter Cyclical Investments.

Sir, if I look at our Q4 numbers, sir, our gross margins are...

You are not audible. Please, can you speak louder?

Yes. Sir, is my audio better right now?

Yes.

Sir, so I wanted to understand, if I look at our FY '25 versus FY '24 numbers, sir, our gross margins have improved by 3-odd percent. And sir, if I look at our revenue, our Modular Furniture segment has grown at a higher rate. Sir, so I'm trying to understand, is the Modular Furniture coming at a higher margin? Or is the gross margin improvement because of something else?

See, gross margin improvement is majorly due to the 2 factors. One is the primarily our focus on the high-margin solutions. That is the primary one reason. And the second one, that is stable pricing of the raw materials also helped us to get the better margin and gross level basically. So both the factors contributed to this higher margins: stable pricing [indiscernible] prices and, at the same time, our focus on the high-margin solutions.

Got it. Sir, so was there any inventory loss in FY '24? And sir, if there is a raw material pricing increase, with what lag do we pass on these price increases or decreases to our customers?

See, as said, there is no inventory loss applicable to our industries because, see, all the inventory is rotatable within 2- to 3-month cycle basically. So we are not keeping any longer-run inventory there, the prices reduction are happening. It's majorly price reduction or stability applies to the PVC resin, which is a crude or byproduct, and the inventory is maintained for just 1 to 2 weeks only. So it's a regular supplied raw material. So what was the -- another question?

That answers my question, sir. I have a next question, sir. One is, sir, if you could give me a margin difference between our PVC Profile, uPVC Windows and Modular Furniture segment? What is the margin differential on all of these 3 products?

See, it's about 2% to 3% differentiation, which is presently at the low side in the Modular Furniture because of the lower level of top line basically. There is no [ difference ]. On the uPVC Windows and PVC Profile, margins are almost on the same levels.

So this is 2% to 3% lower for modular and remaining similar...

Remaining is similar, yes.

Sir, currently, we are operating at a very low -- a decent utilization. Sir, what would be the revenue potential from the current capacity as well as, sir, the INR 50 crores to INR 60 crores CapEx that you are going to do over the next 2 to 3 years, what would be the revenue potential from that?

See, this 50 to 60 -- at the current capacity, revenue generation of around INR 450 crores to INR 500 crores is easily possible. And CapEx which we have planned for the next 2 to 3 years, which is related to certain new product additions and, at the same time, for some capacity enhancements for our South India plant also, so once that is implemented, so that will definitely contribute around INR 150 crores to INR 200 crores of top line. That would be the additional one after adding all those CapEx.

Got it. Sir, just a final question from my end on this wood plastic composite door and the South India plant extrusion plant expansion. So what is the margin? And would the -- the WPC doors, is it higher than our company average today? And sir, the expansion that we are doing in South India, sir, are we going to add more value-added product, high-margin product capacity in that?

The product addition of WPC doors is not based on the higher margin or some other calculation. It's basically the requirement going forward because since we are providing a solution for the wood-free house. So whatever solutions currently we are having and that one component is missing, that is the internal doors for the bedrooms and all. So for that, we are coming up with these solutions. Yes, margins, since it is from the same segment, same line of business, so similar margins we can expect from this.

Got it. And sir, who would be your competitors in this segment?

Sorry?

Competitors?

Can you repeat? Actually, your voice is not...

Sir, is my audio better right now?

Yes.

Sir, who would be your competitors in this segment?

See, competitor in the PVC profile extrusion, which is a B2B segment, that listed peer, there is only one party currently, which is from Gujarat, which is Kaka Industries. And then there are several regional players everywhere. So many regional players are there.

Got it. And sir, in this WPC door segment, who would be the competition?

WPC doors, you see, that's kind of solution which we are working on and we are planning to bring in. According to the information what we have, it is the new solutions for the Indian market.

The next question is from the line of Reena Gattani from Paul Asset Consultant Private Limited. Ma'am, sorry to interrupt, your audio is low. Can you increase the volume and speak, please?

Yes. Am I audible now?

Yes, ma'am. Please proceed.

And so my first question would be, sir, like last financial year also, you had said that you will achieve the revenue growth of 25%, but the actually achieved has been only 11% and as well because of the [ landing ] monsoon and the other reasons. And going forward, you are saying that you will achieve around 25% as well. So all these things might happen in the forthcoming years also. So is there anything planned so that such things will not happen in the future?

See, these negative factors which affected our revenue last year have been considered by us while projecting the revenue growth for the current year. These are the uncertainties which are not in the control of anyone. But yes, based on the increased product range, our penetration throughout India, that growth what we are projecting now is definitely achievable, considering these 1 or 2 factors are vetted.

Ma'am, you're not audible. Can you unmute yourself and speak, please?

Yes, am I audible, sir?

Yes, ma'am.

Yes. So my second questions would be like...

Ma'am, I'm sorry to interrupt you, may I request you to use your handset, please? There is a static on the line otherwise.

Yes. So am I audible now?

Yes, ma'am. Loud and clear.

Yes. So my second question would be, sir, like you have said that you have planned INR 50 crores to INR 60 crores expansion in the next 3 years. And you have also said that within 4 years, you want to be without loan in your book. So how would it be achieved along with the expansion plan?

Ma'am, see, as you can see that in current financial year, we have the very good cash flows with us. In fact, around INR 25 crores-plus cash profit is there in the books. So going forward, based on the increased business and all, so this should also increase. So considering the profitability and incremental business, so that CapEx can be met out with the -- mostly with the internal accruals. And at the same time, our vision to be debt-free in the next 4 to 5 years can also be easily achieved.

Okay, sir. So you mean to say the expansion would be from the internal accruals mostly, right?

Yes. See, it depends on the priorities. If something gets prioritized, in that case, maybe we have to go for some of the short-term financial assistance. Otherwise, as of now, we have planned to meet this expansion plan through internal accruals only.

The next question is from the line of [ Deepak Verma ] from [ Ayodhya Investments ].

I was just noticing that the growth in revenue has fallen quite a lot this year. And since we are projecting a 20%, 25% growth next year and so on, was there any specific reason why it was not so good this year?

See, last year, there were certain factors which affected Q2 and Q3 revenues in particular. So we were not able to reach to the expected levels. Going forward, since we have put a lot of investment and investment on the promotional activities and placing ourselves on the front position at certain cities and when the entry with several new builders and developers also, so considering all those factors that revenue growth in coming years is surely achievable what we have projected now.

Could you throw a bit more light on what factors caused this slowdown?

Yes. Last year, see, there was an extended rainy season since a lot of revenue comes from the project-related business being uPVC Windows and Modular Furniture and which are mainly goes into the Delhi NCR region. So last year that rains were extended till almost second half of August. And then there was a long restriction on the construction activities that the GRAP 4, GRAP 3 -- GRAP 3 and GRAP 4 restrictions were implemented by the Supreme Court due to the pollutions and all. So all those factors affected the on-site activities basically, so that and the power supplies to the sites.

Okay. Got it. One more small question. What would be our average cost of debt long term and short term, separately?

Yes, it's lesser than 8.5%.

Which one? Long term?

Both. Rate of interest is same basically for both long term and short term. It's lesser than 8.5%.

All right. And Hitesh, can I e-mail you separately for some segmental data that I...

Yes, sure, anytime. Anytime.

The next question is from the line of Manan Madlani from KamayaKya Wealth Management.

So when I see the PPT, so in FY '25, our employees stands at 700 plus versus 500 plus last year. So where did this addition happen?

We have started our manufacturing factory in Bangalore for the fluted and soffit. So that major addition is in that plant only.

Okay. And for the fluted panels, we did INR 44 crores this year. So where do you see this segment in next 2 to 3 years? By when we should reach INR 100 crore mark?

INR 100 crore mark, yes, our plan is to do it in within 2 years, next 2 years, maybe. Or you can take 2 to 3 years, we will achieve -- take this segment to INR 100 crore level.

Okay. But the soffit we just started in H2. So there won't be any big number from that segment, right?

See, soffit and fluted both are mixed basically because the application is same, as I mentioned in the previous call also. It's related to the false ceiling and wall paneling. So one is the multilayer solution and second one is the single-layer solution. So that is one is [indiscernible] is also good.

Correct. Okay. One last question. Any plan from your side to hire a brand ambassador for any of your particular brand or any brand activities to promote our products? Anything going?

I'm not -- there is no plan for hiring any specific brand ambassador. But yes, to promote our product and to be visible to everyone, our focus is on more and more participation through exhibitions and stores.

Okay. Any ballpark number how much we will be spending in a year?

Yes. See, last year, we have spent around 1.4% of our overall revenue on the exhibition and sales promotion activities. And we have a plan to take it to the 2% of top line.

Okay. So this will include all the other activities as well, not just the exhibition part?

Yes, related to the exhibition participations and other sales promotion-related activities through digital media and other funds.

We'll take the next question from the line of [ Ajesh Shantaram Kale ], a retail investor.

My question to you is, what is the percentage of your revenue between your distribution and your project order? And how does margin get splitted between distribution and the back-to-back orders? And also, what are the -- I know in bid synthesis, you have given the answers of how you're going to achieve the revenue. But I wanted to understand a specific initiative which will translate to that 25% growth. And if you could just add an element of your distribution split between Southwest, East and North, that will also help.

Yes. See, that so far the revenue mix is concerned related to the B2B and other sales verticals, around 60% revenue comes from our B2B business channel basically, majorly for the PVC profiles and then remaining from the modular furniture and around 30% comes from the project-related business basically. Project-related business is for the uPVC and aluminum windows and doors and then modular furniture. And for that particular project-related business, we are having the order book of around INR 140 crores in hand because B2B business does not carry any order book. It's the regular supplies from 0 to 7 days, we are executing the orders and all. We are having a small portion of exports also, around 2.5% is for the export for the modular furniture and PVC-related products. And around 7% is the retail revenue, which is primarily for the uPVC windows and doors and modular furniture. So this is the revenue mix. And the second question was related to the revenue, how we are going to generate the revenue for the current year...

What are the specific initiatives that you're going to take, which will allow you to take the growth of 25%?

See, we are regularly -- as our MD sir also mentioned that last year, we have increased our expenses on the marketing front. In fact, it's not the expenses, it's about the initiative. We have taken up the initiative to go aggressively in the participation of the exhibitions pan-India, whether it is in the South or North or East, everywhere, we are participating in that. So that is the one front where we are doing the promotion promoting the products. Second one is the healthy order book is supporting our projections. This order book is being analyzed based on the site, current site scenario, how much execution can be done in the current financial year. So considering all those factors, this figure is derived at around 25% growth can be achieved.

But are you adding any sales force at a ground level because you have sectors...

Yes, that is also happening. We have also mentioned in our presentation, so regular recruitments are happening. In fact, in last year also, we have added more than 15 heads in sales front.

Okay. And the last question just is, what is your mix between South, West, East and North of overall your business?

See, South is the major contributor because being a coastal world that acceptance for the wood substitute solution, particularly the polymer-based product is more from the South India. So we can say around 40% revenue is coming from the South India itself. And then the major market after South India is the Eastern part, that West Bengal, Odisha region.

So which means West and East is -- specifically West is lesser penetrated in terms of your business?

Yes, West is lesser penetrated. In fact, we mentioned earlier also that Mumbai region earlier we used to do very good business over there. But the last 2 years, in fact, last year itself, we have opened our depot and showroom in Mumbai to cover up -- getting more revenue from the Maharashtra regions.

Okay. Is it okay if I just drop in an e-mail for some follow-up questions related to...

Yes, yes, sure.

[Operator Instructions] Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to Mr. Digvijay Dhabriya for closing comments. Thank you, and over to you, sir.

Thank you all for joining us on today's earning call. We hope we have addressed your questions effectively. Should you have any further queries or require additional information about the company, please feel free to connect with our Investor Relations team at X-B4 Advisory. Thank you once again, and we wish you good health and safety.

Thank you, members of the management. On behalf of Dhabriya Polywood Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.