Century Plyboards (India) Limited (CENTURYPLY) Q4 2026 Earnings Call Transcript

Good day, ladies and gentlemen, and welcome to Century Plybos India Limited's Q4 FI26 and FI26 earnings conference call. As a reminder, all participant lines will be in the lesson only mode, and there will be an opportunity for you to ask questions after the management's opening remarks. Should you need assistance during this conference call? Please signal an operator by pressing star and zero on your touchstone phone. Please note that this conference is being recorded. And now in the conference, Othamsun Naveen Agarwal, Head, Institutional Equities at SKP Securities Ltd. Thank you, and over to you, sir.

Good afternoon, ladies and gentlemen. I am pleased to welcome you to this financial results conference call on behalf of Century Clibos and SKP Securities. We have with us Mr. Sanjay Agarwal, MD and CEO, Mr. Keshav Bajanka, Executive Director, Mrs. Nikita Bansal, Executive Director, along with Mr. Arun Julasarya, Chief Financial Officer, Mr. Navaroon Sen, COO, Plywood, Mr. Sumanth Vats, CEO, MDF and Particle Board, and Mr. Vishu Goyal, CEO, Laminates. We will have the opening remarks from Mr. Sanjay Agarwal, followed by Q&A session. Thank you, and over to you, Mr. Agarwal.

Thank you, Nanjing. Thank you. Good afternoon, everyone, and a very warm welcome to our Q4 and FY2526 earnings conference call. Before we begin, I would like to remind you that today's discussion may contain forward-looking statements which are subject to risk and uncertainties. This call is not intended as a solicitation Thank you. The financial results and investor presentation have already been shared and are available on the stock exchange websites. FY2526 has been a landmark year for the company, marked by strong growth across businesses, significant improvement in profitability, and continued strengthening of our market position. I am pleased to share that the company reported its highest ever quarterly revenue of 1,492 crores during Q4 FY26. The top line registered a strong growth of 10.5% quarter-on-quarter and 24.5% year-on-year. Reflecting healthy demand across our product portfolio and improved contribution from newly expanded capacities. At the profitability level, consolidated EBITDA margin, excluding forest losses, improved to 13.6% compared to 12.6% in the previous quarter and 12.1% in the corresponding quarter last year. The improvement was reasoned by better operating leverage, higher capacity utilization, improved product mix, and our continued cost optimization and operational efficiency. For the full year FY26, the company achieved top-line growth of 19.2%, while EBITDA margin excluding forest loss improved significantly to 13%. From 11.1% in FY25. In absolute figures, EBITDA excluding forest loss has increased from Rs.502 crore to 702 crore. Profit after tax increased by 44% to 268 crore, compared to 186 crore in the previous financial year. These results demonstrate not only strong revenue growth but also substantial improvement in the quality of earning and overall business efficiency. Segmental Performance. Let me now walk you through the performance of our key business segments. Plywood Segment. The plywood business continued to demonstrate sustainable growth, momentum supported by healthy demand, strong brand positioning and disposition expansion. During Q4 FY26, the segment recorded revenue growth of 11.4% quarter-on-quarter and 17.9% year-on-year. EBITDA margin, excluding Forex losses, stood at 16.1%. For FY26, the segment delivered revenue growth of 15.6%, with EBITDA margin at 15.2%. Reflecting strong operational performance and continued modern resilience. Laminate Segment. The laminate business delivered a small turnaround during the year after remaining relatively subdued over the past one or two years. In Q4 FY26, the segment recorded revenue growth of 8.3% quarter-on-quarter and 16.3% year-on-year, while EBITDA margin improved to 10.3%. For FY26, revenue grew by 13.9%, while EBITDA margin improved significantly to 8.5% compared to 5.2% in FY25. The improvement was driven by better capacity utilization, improved product mix, and efficiency. The next segment, MDF. The MDF business continued its strong growth trajectory, driven by improving utilization levels and sustained demand momentum. During 2-4 FY26, the segment recorded revenue growth of 8.9% quarter-on-quarter and 31% year-on-year. A big-time margin excluding forex losses stood at 11.3%. Core FI 26, the segment achieved revenue growth of 25.5%, while a VITTA margin improved to 12.7% from 10.1% in the previous year. In the current quarter, we have taken a shutdown in our Budwell plant to increase the capacity by 20%. Particle horse segment. Particle-bound business witnessed robust growth during the year, supported by new capacity addition and improved utilization. In Q4, FY26, revenue grew by 3.9% quarter-on-quarter, and 108.3% year-on-year, while EBITDA margin stood at 7.2%. For FY26, the segment recorded revenue growth of 38.2%. With EBITDA margin at 1.2%. We expect further improvement in operating performances and utilization levels continue to increase. Century Ports, a wholly owned subsidiary of Century Plybos India Limited, commenced commercial operation during 2-4-5-25-26 at the rejuvenated Kizirpul docks to be run west at Shama Prasad Mukherjee Port, Kolkata. The commissioning marks a strategic diversification into port logistics and infrastructure aimed at enhancing supply chain efficiencies and creating new growth avenues. We will be cash positive in Q1 of identity 7 from the court business. Financial overview. From a financial perspective, FY26 reflects a year of strong execution, improved profitability, and discipline growth. Excluding forex losses, ROE improved from 10.6% to 15.2%, while ROCE increased from 12.5% to 14.6%. Our continued focus on operational excellence, prudent capital allocation, and strengthening of brand and distribution capabilities has enabled us to improve both scale and earning quality. We remain committed to investing in manufacturing excellence, distribution, expansion, brand, technology, and Sustainable long-term growth. Looking ahead, we remain optimistic about the medium-to-long-term outlook for the building material and interior infrastructure industry. The sector continues to benefit from strong structural drivers such as rising urbanization, disposable income, etc. With our diversified product portfolio, strong brand equity, expanding distribution network, improving capacity utilization, and additional capex on new capacity across businesses. Century Plybox remains well positioned to capitalize on the emerging growth opportunities across segments. We also expect further improvement in ROE and ROCE as we continue to set the... During the quarter, the industry witnessed inflationary pressure in certain chemical and regime-related input costs due to ongoing geopolitical conflicts and supply chain disruptions in global market. However, the company was able to effectively manage the challenges through operational efficiency, strategies, and strategies. Sourcing initiatives, improved product mix, and calibrated pricing actions. Going forward, we will continue to focus on profitable growth, operational excellence, student financial management, and sustainable long-term value creation for the stakeholder. We will now open the floor for questions.

Thank you very much. We will now begin with the question and answer session. Each participant is requested to limit himself or herself to a maximum of two questions. Time permitting, we will respond to any further questions that you may have remain unanswered. Participants, you may press star and 1 to ask a question. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Praveen Sahai from PL Capital. Please, go ahead.

Yeah, hi, sir. Thank you. Congratulations for many congratulations for the good set of numbers. Sir, my first question is related to the MDF. There you had given around 39% of a YOI growth in the quarter. Can you make us understand from where such kind of outperformance is coming? Is that the market share you are gaining or the channel expansion? How that's going on? Related to that, at what level of utilization in the MDF you are running with? And also in this also, if you can give some color on the price, like as you also highlighted, related to the chemical price increase, so related to the idea.

Quite a lot of questions. So, Samanth?

Yes. I think you asked three questions. One, I think, on the Q&Q growth, it's a multitude of factors. Obviously, in March, some stocking does happen because the market was expecting price increases. So, that has certainly been one factor, but not the only factor. As we are, you know, aging more in the south, we are continuously expanding our network and also working on the secondary, which is the carpenters and retailers. So, it's a mix of, you know, I would say a little bit of ERN stocking, but also a lot of fundamentals playing out in terms of enhanced network and enhanced demand generation. So, that's part one of your question. I think part two was on capacity utilization. With the current numbers, we're at about 80% to 85% capacity utilization, give or take, for our full capacity. And this is against the rated capacity. And, you know, if you look at the product mix, typically you can go up to 85% to 90% as a matched capacity on top of rated. And this is the reason why, as MD mentioned in his opening remark, we are also taking an extension in our south plant, which will add another 60,000, 70,000 cubes per year of capacity going forward. On your third question, in terms of price increase, you know, given the disruption in chemicals and supply chain, so on and so forth, we and the industry have taken 15% price increase, you know, which barely actually covers the cost. That has gone up on account of chemicals disruption. It is very early days to see how much of it sticks, and also given the uncertainty right now on supply chain, again, we'll have to wait and watch to see, you know, will it sustain, will we need to take more price increases, or will we need to take some corrections?

Okay, okay. And this time you are not giving guidance for all the segments for F.27?

Actually, the present situation is so, I think, fluid. It will not be right on our part to give you anything right now, but maybe by next time we will be in a better position to go. Till now, whatever we have projected, we have been able to mostly achieve. So, the situation is really, really, and we do not know. What will happen to this war? Because they have given 60 days for that uranium something, they will again sit down. So, it may or may not, the war may again start. So, you really don't know what is going to happen. So, that's why we are deserving, otherwise there is no other reason.

Thank you, sir. I will comment at you.

Thank you. Next question is from the line of Keshav Lahoti. From HDF3 Securities, please go ahead.

Hi, thank you for the opportunity. Sir, congratulations on a strong set of numbers. I can see in Ply, you have announced, you know, multiple expansion, one more new expansion announced. So how should we see, you know, Ply, capacity, what numbers in FY27, 28, 29, give us some sense on that.

And secondly, I will just tell you about the capacities. In the capacity plant, actually, a lot is happening. Right now, we are utilizing our capacities at practically 100% in concern. So, the way we are growing, we have to take this chance, and that's why we are expanding our capacities into our existing plants also. And our plant at Hoseyarpur is particularly on the... I think Nikita can tell better. Nikita, is there online?

Yeah, I'm there.

I think you can say better, yeah.

So, actually, in Q4, we had a capacity utilization of about 99%. We are increasing our capacity by about 30% within this year. Part of it is about 20% is the internal plant expansion. And another, the Huchyarpur plant, is supposed to come up in October this year. So, that would make it a 30% expansion. Next year plan is another, actually, the UP plant is a bit delayed. So, we are looking at, actually, we had earlier projected that, you know, we will be making capex in this year, but it seems because we've just got the land. So I think the capex of the same would start probably towards the end of this year, maybe 7 March, or maybe even Q1 next year, and it will be ready in Q1-28-29. In the meantime, we also have started the process of procuring land in Orissa. Given the way we are expanding, we believe that we will need a new plant, leaving one year apart. So if we got Visharpur this year, I need a new plant in 28-29. That's our projection for the next five years. That's how we are going about it. In between all years, we are expanding within our existing plants, whatever is possible.

I missed it. And Chennai will double by Q3 FY27.

Chennai is doubling in July this year. So that is the 20% expansion that I was talking about, clearly doubling because it's already taken out a lot of meat within its existing plant. So about 40,000 any, which is, I don't know, maybe 30,000 or 25,000 CDM will increase in Chennai by July.

Got it, understood. And this particle board, I can see in the press release you mentioned as the capacity has 240,000. So, we can see the rear capacity of 72,000. Old plant, you are not counting it. So, the plan is to completely scrap the old plant or possibly once this new plant will ramp up, you will start to use the old plant also. And lastly, particle board distanced the capex is 500 crore for 240,000 KPM capacity, a real seam plant which you did the capex was higher at 700 crore. Why is that so?

Yeah, so one said, let me answer. The old plant, which is a multi-layered, slightly older technology, that we have shut down. And as of now, there are no plans to derive it, so we will most likely scrap it. And even if we add future capacity in particle gold at a later stage, should the market allow, it will be in a new bean-filled capacity. So that's your question number one. Sorry, can you repeat question number two? I forgot.

What was the second question on particle board expansion? Distant the particle board expansion cost is 500 crore, while earlier the similar capacity costed you 700 crore.

But we have not taken any particle board expansion earlier, so which one are you repping to? This is our first.

Yeah, so the Chennai was 2,40,000, which where you incurred 700 crore rupees.

No 700 crore. Chennai toh, nya plant jo lagaya. That is what we are running now. The earlier plant, we have closed down. So that we are scrapping. So therefore, I think we invested some 200 some crores. The first one.

The old plant was 70 crores. I think you have got your numbers mixed up. The old plant was an archaic old technology, which was multi-delight craft, and hence the Apex cost was much lower. This is a continuous production line where the cost will be higher.

I'm talking about the Chennai Greenfield, which you did particles board expansion of 240,000. That plant costing was around 700 crores. Is this number right?

No, the number is incorrect. The plant costing was about 550 crores.

Okay, so assuming the plant costing was five to take the road, but now the one, the Odisha one which you are doing, which will come in, you know, it

is just an MOU that we have done with the government with very, very rough calculations. It is something that we are still exploring. So, Odisha, nothing has been finalized yet.

And, Odisha, have we done an MOU for particle boat plant or for a plywood plant?

For both, Papa. For both? Okay. No, so I think if you're comparing the MOU, I think it's a wrong comparison to do because the MOU right now, we have got it with a caveat if you read that it could be a NBF or a particle board, we will take a decision when the time comes. And as you know, in India, it takes a little bit time. We are just in the stage of procuring land. And you've seen that even in the past, when we actually start procuring land, I don't see Orisa going live in another two years from now. I'm getting the line. Then, you know, all the formalities will start. So, I think two years from now, we can give you a better idea on costs and all the breakups. I hope that clears me.

Understood, got it quite clear. And this MDS for AP is already done. That's the button you can think for MDS.

Sorry, could you say it again?

Your voice was not clear, they are asking for the devotm. So MDF, you were increasing capacity by 20-25% for AP plant, which you said in Shuvan, that is already done and dusted now.

No, no, that is going on as we speak. In Q1 of this financial year, we are doing a brownfield expansion in our south plant that will unlock about 60,000-70,000 cubic meters per year of additional capacity. So that is ongoing currently and will get completed by the end of the quarter.

Got it. Will this have an impact on the sales volume for MDF in this quarter or you already had the surplus inventory?

Yeah, so we've planned for inventory, and hopefully, you know, we'll be able to service the market sufficiently with the inventory.

One last question from my side. In ply, you used to import timber. Now, all the geopolitical has been and container rates have increased. So, in this way, this will increase your costing for ply timber also. And you are facing any supply-side challenges?

Can you repeat it? Sorry, I missed your thing.

So, I said in ply, because of geopolitical, the freight rates have increased. So, you used to import, you know, timber in ply segments. So, is there any supply side challenge and whether your ply timber costing have increased due to higher freight rates?

Yeah, so actually there is no challenge per se in getting the material, but yes, prices have increased, and we have taken a 7% price rise already in the month of April due to these reasons, because we are so import heavy, as well as our chemicals, which are imported as well. They too faced a lot of increase. You must be reading about phenol and melamine in the papers anyway.

All right. Any help. Thank you so much.

Thank you. Participants, you may play star and want to answer questions. Next question is from the line of Utkarsh Napani from Anandvati. Please go ahead.

Yeah, hi. Good evening, sir. Yeah, hi, sir. Sir, my first question is regarding your MDF segment. So, like on volume side, you are doing pretty good. But on the margin side, if you see, like your margin has come under pressure, which earlier it was not guided. So, just wanted to know what is the reason for the margin pressure in the March quarter, and what should be the sustainable margin in this segment as per you, and by when it is likely to be achieved, sir?

Yeah, so if you compare Q4 versus Q3, there has been a margin erosion of about a percent, a marginal margin erosion. This is on account of two factors. One, some production-related disruptions linked to the chemical availability and prices. And secondly, some one-off spins. We did a little bit of ATL on the MDF side, which also got hit in quarter four. So that's the reason why you see the 1% margin decline. Water and water. I think in terms of steady state, you know, once things stabilize on the chemical side, supply chain side, so on and so forth, you know, our strong belief is that this is a high-teams EBITDA business in steady state, and there are two-three reasons for it. You know, one, a lot of operational improvement on the plant side that we do in regular course is likely to kick in again next year as well. Secondly, with this whole ground field expansion in the south plant, it gives us efficiencies on power, fuel, so on and so forth. And then the effort is being made just in terms of product mix and value-added products, which we want to push further and further. So in steady state, I think this is a high teams business, if not higher. And we hope to achieve it as the next year goes by. I think a specific timeline is very difficult to put right now, given so much is happening globally. But that's our plan and our vision.

Okay. And on the timber side, what we are hearing is that the timber prices in the local market is corrected by roughly around 10%. So, just wanted to know, are you also seeing similar kind of a correction in the local timber prices and what is the outlook for the timber prices for FI27, sir?

Yeah, so I think, you know, if we look at timber as a raw material, and if I compare to the volatility in the year before, and the years before that, you know, timber has remained a lot more stable this year. You know, while it's marginally corrected, I won't say it's corrected by 10%, but it's remained stable. And there are some regular seasonal variations that happen any which way in timber, for example, in monsoon season, the availability is low, so on and so forth. So that happens every year. But by and large, timber as a raw material has remained stable, and we expect it to remain stable going forward.

Okay, thanks a lot, sir. If you can just find out how much price we have taken in the other side, also like plywood, laminate, and particle book in Q4 and in Q1, Q8, and what would we are taking as well as for FI298?

So, I can answer for particle board, and then I hand it over to Nikita maybe for ply. Look, particle board is a very key account management business, and the industry has not really announced any price hike per se, so it's not standard. But, you know, the raw material prices on account of chemicals have taken a hit similar to MDF, and our price passed on has also been in the same range.

And I think I have already on the plywood side already mentioned that we have passed on whatever price increases we had so far in April of 7%, but it's a wait and watch scenario. And if we feel that, you know, prices continue to rise, we will take further prices, particularly.

Okay. And Madam, what would be the KPIs guidance for 27 and 28 on a console basis?

Bina, can you answer that at a whole level, company level?

I'll just take that. The basic CAPEX that we are going to incur, the majority of it is going to be towards our new Sharaput plant. Other than that, once we are online with Uttar Pradesh, once the land is in hand, we should be looking at commissioning Uttar Pradesh over the course of the next two years. Other than these two, we have no major frozen CAPEXes yet, so the CAPEX will be predominantly directed towards plywood.

Thanks a lot, sir.

Thank you. Next question is from the line of Rahul Agarwal. From EKG asset managers, please go ahead.

Yeah, hi. Very good evening, sir, to everybody on the call. There's two questions. One is, you know, more longer term, midterm in terms of strategy. Our operating cash flows every year are about 600-700 crores. Please correct me if I'm wrong. Our capex total, including UP or ISTA, is 2,000 crores next four years, five years, roughly about 400-500 crores a year. Most of the heavy lifting on cash flow right now is plywood, 60% of EBITDA is coming from there. So just, you know, need to understand your thoughts on, you know, how do you manage? Your risk going forward, right? There's a lot more on execution, which will depend on to fund this CAPEX. Second is, at the same time, we've got to control on our, you know, financial leverage on the balance sheet, which is 1,600 crores right now. And third is, of course, you know, spreading out this CAPEX over four or five years time, so that the, you know, the CAPEX, which we just finished over the last two, three years, should actually generate, you know, the ROC you want. So, how do we play a balancing act here? Could you just explain in terms of your own thought process for the entire business? That's the first question.

Hi, Raul. I think the way to look at this, you know, we are a company that you've seen has invested when we believe that there is money to be made, but at the same time, for us, turnover is vanity, profit is sanity, and cash is reality. So, return on capital is one of the most important metrics that we track. Currently, as you rightly pointed out, we have invested substantially over the course of the past two years. And right now, I think it is opportune for us to sweat our assets to generous returns. We are looking at growth that is not exponential. We are looking at a sustained growth. Towards that, maintaining balance sheet discipline is one of the most important priorities. At this point in time, like I have already mentioned, our priority is going to be in creating capacity for plywood. Where we are seeing that we might raise a shortage. One month and a half years from now, due to very strong cuts on the ground. Other than that, we will take a call on the other segments as and when we reach capacity utilization. There could be stagnancy in a couple of segments where we will not benefit substantially from volume addition for a period of one or two quarters, maybe from the fag end of next year onwards. But this will be offset by higher realizations and by higher value addition sales. So I think currently, there's no frozen capex for MDF or particle gold, which are large substantial capexes. We are going to be using our internal cash flows predominantly to strengthen our balance sheet. And going forward, as in when we take a call, you'll be the first to know.

And I would like to add one more thing to this, that see in plywood, we are not doing unrealistic expansion, because all this while you never saw expansion was because our existing plants had a lot of juice to actually take out. We could really do massive expansion within our plants. We've actually doubled, tripled our capacity within our existing plants over the last five to six years. But that is now no longer feasible. And because of that, we need to put up new plants. And we are looking at securing raw material sources because of which we are looking at URISTA or UP, except for future whenever we come back to local timber. And we are taking a very muted growth of 10% to 12% and a capacity utilization of 80% basis that we are planning on.

Right. Absolutely get it. Just in terms of follow-up, for plywood, Nikita, the base is going to be very high, right? This year, you've done exceptionally well. Either to actually do the heavy lifting next year, you know, you're talking about 10-12% growth for next year, I think, what you're talking about?

Right. Temdi said at the beginning, we don't want to give any numbers for this year. I think in the next call, we will talk about the numbers. For this year, what we are expecting. Obviously, you will also see how good performance you want by then.

Sure, sure. I get that. So, you know, just in terms of your own comfort on debt overall level versus if I look at EBITDA, what's the comfort level from a balance sheet console perspective? Right now, we are at about two and a half. If we look at debt to EBITDA, gross levels.

I think we should be reasonably assured. Operating debt, working capital debt, is something because we are growing, and we are in a high growth phase. 19% growth year on year for a business like ours does require certain working capital. But long-term debt, I don't think we'll exceed 1 to 1 EBITDA going forward.

Yes, I got it. And just lastly on Forex, I just want to understand, you know, what are these liabilities where, you know, Forex in case INR, you know, devalues substantially in any quarter, which has just happened like that right now, what are these liabilities?

Our total Forex is within 600 pros over the course of the past two decades. We have benefited substantially because of a natural interest hedge, as you are aware. One year, yes, there's been a stark loss. This is predominantly due to the fact that currency is appreciated beyond what anyone could have imagined. Having said that, I think our total forex expenditure, our total forex exposure is 600 rows. It is going to be limited to within that space, which is not going to have a very meaningful impact on our balance sheet going forward. We are not going to increase our forex exposure going forward.

I absolutely understand. What I was asking was, is it part of debt, or is it part of, is it realized, or this is mark-to-market?

No, no, this is mark-to-market.

Right, okay. So, this is part of...

It is pure mark-to-market.

Okay, this is not realized, Lauren. This is largely on liabilities on short-term debt, is it?

No, it is on long-term debt. Majority of it is long-term debt, no? Because we have imported machinery and buyer's credit.

That is very clear. Thank you so much, and wish you all the best for the next year.

Thank you. Thank you. Next question is from the line of Sneha, from Lama Work Management. Please, go ahead.

Hi. Good evening. I'm a co-graphist. Hello, sir. Hi.

Thank you.

Just a couple of questions, sir. Sneha, sorry to interrupt you.

Sneha, sorry to interrupt you. Our audio is breaking. Can you comment a better reception area, please?

Is it better now?

Yes.

Yeah, so we're just asking whether, you know, on the plywood front, whether we have opportunity for outsourcing. If yes, what would be the contribution of outsourcing currently? That's one. So, although I understand you said that, you know, for incremental even 10-12%, we need to add growth, but the possibility of the outsourcing front also to get a higher growth, that's first. Secondly, a lot of your peers on the call mentioned that, you know, on MDA front, although we have taken price hike, but it's being partially passed on, and due to competition, there are schemes and discounts going on. So, just wanted to understand that how much of the raw metal cost absorption across the board is done, and could we see any margin impact starting Q1 because of higher inflation?

So let me take the outsource question first, and then Suman can take the next question. So, the thing is, with respect to outsource, I think I've mentioned it in the last call as well, and Ami, that, you know, we want to actually make it a complete 100% in-house production. We are hoping that by the time there is an internal expansion next year, April, and Husharpur, so once Husharpur comes, we will start moving a lot of our Saini Kemar, which is the only product we outsource. In-house, and by the time we are here next year, we would probably make it 100% in-house.

Go ahead, Nikita.

Thanks.

On the pricing, like I mentioned previously, we and the industry have, you know, taken a 15% price increase this quarter, and, you know, that more or less covers the cost increase on account of supply chain disruptions and the war. You are right. Some peers in the industry have done selective, you know, rollbacks on this. So, right now, it's in a bit of a flux, you know, given that the global tensions are again at play. We don't know which way the prices will go from here. Also, in the market, you know, like you rightly pointed, there have been some rollbacks by a few players here or there. So, I think the situation is a bit, you know, we're waiting and watching and see which way it will go. You know, our hope is that we are able to pass on the cost increase as an industry in terms of prices, and therefore there should be no margin impact. But right now, it's waiting watch for us. It's very difficult to say currently.

Got that. Lastly, it is a third and last question from my end, which is related to across the categories. The reason I'm asking this, we've seen significant inflation. In March, there was a lot of channel pushing, be it tiles, be it pipes, be it even your space, like MLS, where the traders or the distributors were expecting size hikes. And that is why they stuffed material in the month of March and probably because of which April has been slow. Just a sense that I wanted to get, how is May picked out? Are we seeing any scope of, you know, channel recouping and now taking material?

Yeah, for us, April was not slow, so.

Okay, so that answers.

April was not slow, not slow, yeah. So I want to clarify one more thing, as far as this outsourcing is concerned. You know that Century is absolutely into quality. And we have seen that outsourcing in plywood has really not worked as far as the quality is concerned. So that's why we are slowly and as fast as possible together, I should say, we are trying to withdraw from outsourcing, reduce outsourcing and do everything in-house. Because the quality is of utmost importance to us.

Got that, sir. That was really helpful. Thanks a lot.

And why I am saying so? Because next time you build your house, you must buy every century plywood.

Thank you. Thank you so much, team, and all the best.

Thank you. Next question is from the line of Shankaran Mehra from PreMG Invest. Please go ahead.

Hi, Mr. Mehra.

Hi, thank you for the opportunity. So, just an extension to Rahul's question on the overall CAPEX. So, on the MDF front, you seem to be running at pretty high capacity utilization, right? And this debottlenecking probably helps you for growth ultimately next year. So, what are the plans beyond that? I mean, if we are, if you want to expand capacity there, I'm sure, you know, something must be planned by now so that it's. So, it commissioned by FIA 28. So, any thoughts there, or would the idea be to focus on, you know, more value-added products? How should you think about it?

Keshav, are you there? Keshav, would you like to take that?

Sir, Keshav's line dropped. I'll just call him. Okay, okay, okay.

Yeah, but, you know, Mahan, maybe I can take a stab at answering while, you know, Keshav joins. Look, like Keshav mentioned, a couple of questions back. You know, obviously, the bottlenecking is one, you know, area which will give us 60,000, 70,000 cubic meters more of capacity this year. And we would like to obviously try to sell it off as quickly as possible. In parallel, move towards value added is certainly very high on the agenda. That also gives us a bit of uplift. In terms of capacity addition, beyond that, you know, nothing is formed up and nothing is... It's announceable as of now. You know, we're obviously doing our internal brainstorming. Once we're in a position to give you specifics, you know, in terms of timelines and capacity, we'll come back.

With our UP land acquisition, if it happens correctly on time, we'll be ready with the land.

If the land is ready, then the rest of it is absolutely ready with us.

There is no more science to it for us. We will be able to put up a plant within

And because of plywood, we would actually get the land ready regardless, because we would need the common facilities and more or less the roads, etc. So the land will be ready. If ever MDF decides, it won't take as long a period as it takes for a fresh project.

Understood. So, I mean, just to sort of clarify that it's more a timing or a KPEX issue, I think you suggest that the growth opportunities are sort of saturated. I shouldn't be taking it.

No, no, no, no. We are very, very bullish on MDS radar. The capacities are going to expand really big time. A lot of progress is going to come in. These are only, you know, what do you say? Thank you.

No, and I think the division will deliver an EBITDA where you all will also get the confidence that we further go into practice. So, I think that is also important.

I'm looking forward to that. Thank you and wish you all the rest.

Thank you.

Thank you. Next question is from the line of Amit Purohit from Inlara Capital. Please go ahead.

Thank you for the opportunity. Hi, sir. Congratulations for a good set of numbers. So just two questions. One on the demand. How are you seeing right now? Given the fact that you have taken price increases in most of the segments. And second, when you take price increases, I just wanted to understand how do you, I mean, just a bit of a mathematical thing, trying to understand whether this price increases ensures you a percentage margin or suppose the raw metal prices would have gone up by how much for MDF at an aggregate level or in plywood, if you couldn't give me. Is it a raw metal price increase by 7% and 15% for you? And that's why the amount of price increase has been taken.

It's not that complicated. It's very simple. You see, there are very different factors in costing. We have a very efficient costing management system. And, you know, very fast we get the calculations that what are our costs going to be in, say, next one month's time or so. Accordingly, we take the price and it is not only raw material, timber, because

timber is only maybe certain percentage of the whole thing.

Then there are chemicals, then there are factory inputs, and then there are logistic costs. And then there is a dollar, a rupee. So all these things we take into account and we take the increase. It's much simpler than...

No, so I just want to know, is that what is the raw material index for you increased in MDF and plywood? If you could just tell us that on a while, why this is for you to take 7 and 15 percent?

What is the raw material percentage in the total?

Yeah, it's something I personally don't want to share. I think at least for plywood, I don't want to share and I think someone would say the same for MDF.

I don't think we should share for all this.

Yeah, and as far as the demand part goes, I would request Mr. Sahil, if he's on the line, he should answer. Apply, and then someone can answer for MTS.

Navroon, are you there?

Okay, if he's not there, let me take it out.

So the thing is that, you know, whenever we do a price increase, We expect that, you know, things will fall, but we are not seeing any drop in our secondary. So that, to me, shows that, you know, there might be some holding with the big dealers, but because we have such a wide expansion and we actually run routes on a daily basis when it comes to feeding smaller dealers, I feel that demand is continuing even post the price increase.

Yeah, I think just to add to that, sorry, you were saying something, please go ahead.

No, no, continue, and then I'll just have one small follow-up on that.

Yeah, no, just a quick addition to that on the NBS side. Look, for us also, demand has been quite stable. You know, usually April may ask a bet to Q4. Of course, there's a little bit of, you know, correction that happens from the Q4 exuberance. But in general, we don't see any fundamental weakening of demand. So it's quite stable and healthy.

Sure. And just, sir, I understand you may not like to share the exact percentages, but can you just say whether it is higher or lower versus the price increase that you have taken?

It will always be higher, right? The raw material increase will be higher because of the ratio of the raw material to the… The pricing is, it's not 100%, right? So, obviously, the raw materials price would be higher, obviously, but we pass on the exact rise. We do not let our EBITDA get hit. That's usually how we work as a company.

I think that answers your question. You're trying to ask, are we trying to get more margin from the pricing fees, or are we just covering our costs? I think Nikola answered. The philosophy is to pass on as much of cost as possible. So that's the intent.

Sure. Thank you so much. Thank you.

Next question is from Lionel Bahavindropani from Investec India. Please go ahead.

Yeah, hi. Thanks for the opportunity. So, first question related to plywood. So, last quarter, we said 8% of our total revenue in plywood is with respect to scenic MR. So, first, if you can tell us what is it in terms of volume. And second, now we plan to bring in scenic MR in-house. So, does it mean that volume growth won't be commensurate to capacity growth going ahead? So, is that a fair understanding?

Um, so, okay, let me answer it in two ways. Number one, we do not share breakup of Senec MR and Senec 710 and Club Prime. We've maintained this in the past, so I will not answer that question. With respect to the second part, Yes. So if you say in terms of the growth, the capacity expansion that is happening is quite aggressive at a smaller timeline. So if you see, if you've added 30% just this year, and then we are adding another further. 15% next year is all to actually take up some part of this 8%. Obviously, we are now going to grow by 45% in this one and a half years. Yes.

Yes, yes, it does. So just to follow up on this, if you can call out what is the capacity right now in Plywood and what will be our capacity post you are done with all the KPEGs that we have announced?

So, where will you take up those exact numbers, please?

Sure. So, correct. So, RCT, in case of flywheel is 4,6,000. This is action 35th.

Sir, sorry to interrupt you. You're sounding distant.

Am I audible now?

Yes, sir.

Yeah, so current capacity at Flywood is 4,6,000 as on March 25th, and we are coming up with new capacity of Sharqa, which is 48,000 CDI, which is going to come up in the second half of this year. Apart from that, we are having a brownfield expansion at different factories, which is Karnalas, Chennai, and Guati, which will add another 20% of this particular capacity, which it has already told.

20% of total capacity is 80,000? 4 lakh.

Yes, yes. So, around 3.

Got it. So, second question related to Century Port. So, we have done expense of somewhere around 260 to 70 crores over 3 years. So, just wanted to understand what could be the potential cost saving we can expect from this. Hello?

What do you mean by cost saving for Century Plants?

Yes, cost saving or incremental. Cost saving or incremental revenue.

Cost saving for century fly.

Now, there is no cost saving in the century.

There is no money. It makes life easier for many, many importers and exporters. So, to us also, but there is no cost saving for century fly in this.

We always maintain each thing as a separate profit center. So Century 4th will continue to have its own profit center and give no benefit to apply either to me.

All right. Thank you so much. Participants kindly limit yourself to two questions per participant and rejoin for a follow-up. Next question is from the line of Mehul Shah from NMV Securities. Please go ahead.

Hello, sir.

Sir, I wanted to know the current capacity for laminate.

Current capacity for laminate?

And utilization.

So our capacity utilization is at 84% and our capacity is 87,70,000 seats.

87,70,000?

87,70,000 seats. This is consolidated, right? The lamb budwell capacity is 11,200 CBM. These are two different kinds of number because there the number was number of seats, 87 by 70,000 number of seats. Here it is CBM because here we make a different kind of laminate actually. It's a thicker laminate which is mostly for exports or for use in toilet cubicles and all that.

Okay.

So the capacity of utilization at Birdvale is 47%.

And what would be the capacity for 27 and 28?

Capacity for 27 and 28? Same.

So, like we said, we will give those numbers in the next call, because if I talk about capacity utilization, I will also end up talking about what is my plan for this year. So, we will give that in the next call. No, no, he is asking capacity utilization percentage for this year.

And for MDF, capacity is filed at 28,000, right, current?

So, for MDS, the current capacity is about 530,000-540,000 CBM per year, and with the downfield expansion, we'll add another 60,000-70,000. So, we'll be give or take 6 lakhs cubes a year.

Okay. Okay. Thank you.

Thank you. Next question is from the line of Anuparag from Aranwati. Please go ahead.

Yeah, hi, sir. So, first question is, what is the reason for weak performance in the laminate segment for the 18 quarters, and by when can we expect it to start performing?

Visho, you had? Yeah, yeah, I can answer that. So, Visho, go on this side. So, I think there are two parts to the question. Okay. In the last, if you were to look at the preceding, you know, eight quarters, which is FI 2425 and 2324, okay, we had seen a certain amount of stagnancy as far as the laminate business is concerned. Partially because of some internal changes and in the context of how we wanted to take up the GTM level changes, which probably have not worked to our advantage. And partially also because of the changing product mix, when you look at Indian as well as both export markets. So we took some corrective actions starting last year only. And if you were to look at this year, we have started seeing some green shoots as far as the financial year 25-26 is concerned. So, on a quarter-on-quarter basis, we have seen an uptick as far as the overall top line as well as the improvement on the bottom line is concerned. Which essentially has come through the work which we have done both in the domestic market, including working on some price points, trying to sharpen our go-to-market strategy and making some corrective changes there, including changes in the leadership team. Also at the export level, we have added the larger capacity presses, you know, which is something which is more attuned to the kind of product mix which is utilized or kind of demanded in the global markets, you know, all across, you know, Europe, Southeast Asia, and stuff like that. So that also has started giving us some dividend. So to that extent, we are seeing some green shoots. And while of course, you know, we are in a context of building up the space for us, but for whatever we understand, including all the published companies within their published their results, we have done reasonably okay as if not growth rates outstrips all of them from a published point of view. So industry itself has seen a sudden amount of 8-10% kind of a revenue guidance, if you were to look at the market leaders and all other companies, the way they are portraying, and at this stage, we continue to outgrow that. So, as we move ahead, we will see more improvement and consolidation moving forward, and we may continue to outgrow the market by 3-4%.

Okay, and sir, what is the, how much has been the rise in the chemical prices compared to the average of Q4 based on current market rate? Also, if you can share the chemical cost percentage as a proportion of revenue of plywood, laminate, embellies, and particles.

I don't think we share, but you know, fine costs, etc. We do not share, actually.

Okay, sir, but just how much has been the rise in the chemical prices?

Haan, yeh, bata sakti yo.

So, see for us, you know, we have, like in the context of MDF and, you know, plywood, we have taken a price increase to the, you know, 10 to 12 percent, largely the impact in the quarter one, okay, and that predominantly covers our raw material or the chemical cost price hike. Which has happened, because we are dependent on a lot of chemicals, and it does form a sizable portion of our input cost. So, but we have been able to pass on most of the price increase to the market.

So, the cost increase in chemical will be a little higher than this percentage? Yeah, maybe we are unable to tell you at this moment exactly.

Okay, sir. Thank you so much.

Thank you very much. That was the last question in the queue. As there are no further questions, I would now like to hand the conference over to Mr. Fenn Jagarwal for closing remarks.

Yeah, thank you, everyone, for your insightful questions and continued interest in our company. We are encouraged by the strong performance delivered in F526 and remain confident about sustaining the growth momentum across our businesses. If Iran was supposedly ending, I hope to have it here. We did it. We sincerely appreciate your continued trust and support, and we look forward to interacting with you again after our next quarter results. Thank you. Have a great day.

Thank you very much. On behalf of SKP Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.