Q1 2027 Century Plyboards (India) Ltd Earnings Call

August 4, 2026

Speaker #1: Ladies and gentlemen, thank you for your patience. The conference of Century Plyboards (India) Limited will begin shortly. Please stay connected and do not disconnect.

Operator: Ladies and gentlemen, thank you for your patience. The conference of Centuryply Ltd. will begin shortly. Please stay connected and do not disconnect. Thank you. Good day, ladies and gentlemen. Welcome to the Century Plyboards India Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the management opening remarks. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Naveen Agrawal, Head Institutional Equities, SKP Securities Limited. Thank you, and over to you.

Speaker #1: Ladies and gentlemen, thank you for your patience. The conference of Century Plyboards (India) Limited will begin shortly. Please stay connected and do not disconnect.

Speaker #1: Thank you. Good day, ladies and gentlemen. Welcome to the Century Plyboards (India) Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode.

Operator: Good day, ladies and gentlemen. Welcome to the Century Plyboards India Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the management opening remarks. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Navin Agrawal, Head Institutional Equities, SKP Securities Limited. Thank you, and over to you.

Speaker #1: 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, then zero, on your touch-tone phone.

Speaker #1: Please note that this conference is being recorded. I will now hand the conference over to Mr. Naveen Agrawal, Head, Institutional Equities, SKP Securities Limited.

Speaker #1: Thank you, and over to you.

Speaker #2: Good afternoon, ladies and gentlemen. I'm pleased to welcome you to this financial results conference call on behalf of Century Plyboards and SKP Securities. We have with us Mr. Sanjay Agarwal, MD and CEO; Mr. Keshav Bhajanka, Executive Director; Mrs. Nikita Bansal, Executive Director; Mr. Arun Julasaria, CFO; Mrs. Sumat Vatas, CEO of NDF and Particle Board Business; and Mr. Vishu Gohil, CEO of Laminates Business.

Navin B. Agrawal: Good afternoon, ladies and gentlemen. I'm pleased to welcome you to this financial results conference call on behalf of Century Plyboards and SKP Securities. We have with us Mr. Sanjay Agarwal, MD and CEO; Mr. Keshav Bhajanka, Executive Director; Mrs. Nikita Bansal, Executive Director; along with Mr. Arun Julasaria, CFO; Mr. Sumant Wattas, CEO, MDF and Particle Board Business; and Mr. Vishnu Goel, CEO, Laminates Business. We'll have the opening remarks from Mr. Sanjay Agarwal, followed by a Q&A session. Thank you, and over to you, Mr. Agarwal.

Navin Agrawal: Good afternoon, ladies and gentlemen. I'm pleased to welcome you to this financial results conference call on behalf of Century Plyboards and SKP Securities. We have with us Mr. Sanjay Agarwal, MD and CEO; Mr. Keshav Bhajanka, Executive Director; Mrs. Nikita Bansal, Executive Director; along with Mr. Arun Julasaria, CFO; Mr. Sumant Wattas, CEO, MDF and Particle Board Business; and Mr. Vishu Goel, CEO, Laminates Business. We'll have the opening remarks from Mr. Sanjay Agarwal, followed by a Q&A session. Thank you, and over to you, Mr. Agarwal.

Speaker #2: We'll have the opening remarks from Mr. Sanjay Agarwal, followed by a Q&A session. Thank you, and over to you, Mr. Agarwal.

Speaker #3: Yeah, thanks, Naveen. Good afternoon, everyone, and a very warm welcome to our Q1 FY26-27 earnings conference call. Before we begin, I would like to remind everyone that today's discussion may contain forward-looking statements, which are subject to various risks and uncertainties. These statements should not be construed as guarantees of future performance, and I would encourage all participants to refer to our detailed financial disclosures and investor presentation already available on the stock exchange website.

Sanjay Agarwal: Thanks, Navin. Good afternoon, everyone, and very warm welcome to our Q1 FY27 earnings conference call. Before we begin, I would like to remind everyone that today's discussion may contain forward-looking statements, which are subject to various risks and uncertainties. These statements should not be construed as warranties of future performance, and I would encourage all participants to refer to our detailed financial disclosures and investor presentation already available on the stock exchange website. I am pleased to share that Century Plyboards has started the new financial year with another quarter of strong execution. We delivered our highest-ever quarterly consolidated revenue of INR 1,561 crore, representing a robust 33.5% year-on-year growth. Our EBITDA margin, excluding forex losses, improved to 13.0%, while profit after tax increased by 57% year-on-year to INR 83.3 crore. Now I will speak on individual businesses. Plywood Business.

Speaker #3: I am pleased to share that Century Plyboards has started the new financial year with another quarter of strong execution. We delivered our highest-ever quarterly consolidated revenue of ₹1,561 crore, representing a robust 33.5% year-on-year growth.

Sanjay Agarwal: I am pleased to share that Century Plyboards has started the new financial year with another quarter of strong execution. We delivered our highest-ever quarterly consolidated revenue of INR 1,561 crore, representing a robust 33.5% year-on-year growth. Our EBITDA margin, excluding forex losses, improved to 13.0%, while profit after tax increased by 57% year-on-year to INR 83.3 crore. Now I will speak on individual businesses. Plywood Business.

Speaker #3: Our EBITDA margin, excluding forest losses, improved to 13.0%, while profit after tax increased by 57% year-on-year to ₹83.3 crores. Now I will speak on individual businesses. In the plywood business, the company continues to strengthen its plywood segment through both capacity expansion and brand-building initiatives. The 60,000 CBM per annum greenfield plywood plant at Hoshiarpur is expected to commence operations in Q3 FY27, while the Chennai brownfield expansion has increased capacity from 8,000 CBM per month in Q1 to 10,000 CBM per month in Q2, with a further increase to 12,500 CBM per month from Q3 FY27.

Sanjay Agarwal: The company continues to strengthen its Plywood Business through both capacity expansion and brand-building initiatives. The 60,000 cbm per annum greenfield plywood plant at Hoshiarpur is expected to commence operation in Q3 FY27, while the Chennai brownfield expansion has increased capacity from 8,000 cbm per month in Q1 to 10,000 cbm per month in Q2, with a further increase to 12,500 cbm per month from Q3 FY27. To enforce its premium positioning, the company hosted around 1,000 dealers and sales team members in Kolkata for its Prime Ply Day event, showcasing the superior attributes of Club Prime plywood versus competing products. Further, to mitigate the impact of higher chemical input costs arising from geopolitical development, the company implemented about 7% price increase in April in the Plywood Business, largely passing on the increase in raw material costs.

Speaker #3: To enforce its median positioning, the company hosted around 1,000 dealers and sales team members in Kolkata for its Prime Ply Day event, showcasing the superior attributes of Club Prime Plywood versus competing products.

Sanjay Agarwal: To enforce its premium positioning, the company hosted around 1,000 dealers and sales team members in Kolkata for its Prime Ply Day event, showcasing the superior attributes of Club Prime plywood versus competing products. Further, to mitigate the impact of higher chemical input costs arising from geopolitical development, the company implemented about 7% price increase in April in the Plywood Business, largely passing on the increase in raw material costs.

Speaker #3: Further, to mitigate the impact of higher chemical input costs arising from geopolitical developments, the company implemented about a 7% price increase in April in the plywood business, largely passing on the increase in raw material costs.

Speaker #3: On the financial front, revenue increased by 32.4% year-on-year and 8.9% sequentially, while EBITDA margin improved to 16.9%, which is the highest among any player in the industry.

Sanjay Agarwal: On financial front, revenue increased by 32.4% year-on-year and 8.9% subsequently, while EBITDA margins improved to 16.9%, which is highest with any player in the industry. Laminates Business. The Laminates Business maintained the strong momentum it commenced in the previous quarter and delivered another robust performance. Revenue grew 14.7% year-on-year, while EBITDA margins remained healthy at 10.2%, reflecting improved product mix, better capacity utilization, and operational efficiencies. As consumer preference continue to evolve, innovation remains a key differentiator for us. During the quarter, we launched the Century Laminates Lookbook, The Trends Edit 26/27, introducing a contemporary collection inspired by global design trends. The new catalog has received an encouraging response from architects, interior designers, channel partners, and customers, further reinforcing our premium positioning in the decorative surface segment. A new hot press was commissioned at Vadodara plant for export-grade manufacturing at the end of July 2026. MDF Business.

Speaker #3: Laminate Business: The laminates business maintained the strong momentum established during the previous quarter and delivered another robust performance. Revenue grew 14.7% year-on-year, while EBITDA margins remained healthy at 10.2%, reflecting improved product mix, better capacity utilization, and operational efficiencies.

Speaker #3: As consumer preferences continued to evolve, innovation remained a key differentiator for us. During the quarter, we launched the Century Laminates Lookbook. The Trends Edition '26–'27 introduces a contemporary collection inspired by global design trends.

Sanjay Agarwal: As consumer preference continue to evolve, innovation remains a key differentiator for us. During the quarter, we launched the Century Laminates Lookbook, The Trends Edit 26/27, introducing a contemporary collection inspired by global design trends. The new catalog has received an encouraging response from architects, interior designers, channel partners, and customers, further reinforcing our premium positioning in the decorative surface segment. A new hot press was commissioned at Vadodara plant for export-grade manufacturing at the end of July 2026. MDF Business.

Speaker #3: The new catalog has received an encouraging response from architects, interior designers, panel partners, and customers, further reinforcing our premium positioning in the decorative surface segment.

Speaker #3: A new hot press was commissioned and is planned for export, with great manufacturing at the end of July 26. MDF Business: The MDF business reported another healthy year-on-year performance, although the quarter was impacted by the planned shutdown required for expansion of our Andhra Pradesh manufacturing facility.

Sanjay Agarwal: The MDF business reported another healthy year-on-year performance, although the quarter was impacted by the planned shutdown required for expansion of our Andhra Pradesh manufacturing facility. During the quarter, we expanded the capacity of our Andhra Pradesh MDF plant from 700 cbm per day to 900 cbm per day. This resulted in lower production and a sequential decline in the revenue. Nevertheless, the business delivered nearly 29% year-on-year revenue growth, highlighting the strong underlying demand for MDF products. Particleboard business. Our particleboard business continued to strengthen during the quarter. The revenue increased by 28% sequentially and 155.7% year-on-year, indicating higher capacity utilization and growing acceptance of our products across furniture manufacturers and OEM customers.

Speaker #3: During the quarter, we expanded the capacity of our Andhra Pradesh MDF plant from 750 CBM per day to 950 CBM per day. This resulted in lower production and a sequential decline in revenue, even as the business delivered nearly 29% year-on-year revenue growth.

Sanjay Agarwal: Nevertheless, the business delivered nearly 29% year-on-year revenue growth, highlighting the strong underlying demand for MDF products. Particleboard business. Our particleboard business continued to strengthen during the quarter. The revenue increased by 28% sequentially and 155.7% year-on-year, indicating higher capacity utilization and growing acceptance of our products across furniture manufacturers and OEM customers.

Speaker #3: Highlighting the strong underlying demand for MDF products. Particle Board business: Our Particle Board business continued to sell well during the quarter. Revenue increased by 29% sequentially and 155.7% year-on-year.

Speaker #3: Reflecting higher capacity utilization and growing acceptance of our products across furniture manufacturers and OEM customers. While margins remained at an early stage due to the relatively recent commissioning of capacity, we remain confident that increasing utilization levels, along with a better product mix and operating revenues, will continue to improve profitability over the coming quarters.

Sanjay Agarwal: While margins remain at an early stage due to the relatively recent commissioning of capacity, we remain confident that increasing utilization levels, better product mix, and operating leverage will continue to improve profitability over the coming quarters. Logistic business. Our logistic business operated through one of our subsidiary companies continued to strengthen during the quarter. Operations at the rejuvenated Haldia Dock terminal have now stabilized and started contributing positively to the group. We continue to witness improving cargo handling volumes and increased customer acceptance. This business not only creates a new avenue for revenue diversification, but also strengthens our supply chain capabilities and provides strategic integration benefit for our manufacturing businesses over the long term. Within 2 months of start, we have achieved 9,000+ container handling. Brand building and product innovation at Century Plyboards.

Speaker #3: Our logistics business, operated through one of our subsidiary companies, continued to strengthen during the quarter. Operations at the rejuvenated Chennai Food Dock Terminal have now stabilized and started contributing positively to the group.

Sanjay Agarwal: Operations at the rejuvenated Haldia Dock terminal have now stabilized and started contributing positively to the group. We continue to witness improving cargo handling volumes and increased customer acceptance. This business not only creates a new avenue for revenue diversification, but also strengthens our supply chain capabilities and provides strategic integration benefit for our manufacturing businesses over the long term. Within 2 months of start, we have achieved 9,000+ container handling. Brand building and product innovation at Century Plyboards.

Speaker #3: We continue to witness improving cargo handling volumes and increased customer acceptance. This business not only creates a new avenue for revenue diversification but also strengthens our supply chain capabilities and provides strategic integration benefits for our manufacturing businesses over the long term.

Speaker #3: Within a few months of start, we have achieved 9,000-plus containers in July. Brand building and product innovation at Century Plyboards: We believe sustainable market leadership is built not only through manufacturing excellence but also through continuous innovation and stronger consumer engagement.

Sanjay Agarwal: We believe sustainable market leadership is built not only through manufacturing excellence, but also through continuous innovation and stronger consumer engagement. During the quarter, we introduced Century Premium Plus HDF campaign titled "Har Board Ka Asli Boss," featuring cricketer Rahul Dravid and actor Saurabh Shukla. The campaign harnesses Rahul Dravid's enduring image as Mr. Dependable to build trust for the product and the brand. It is built on consumer insight that while making long-term investment for their homes, consumers seek trusted quality over tall claims. The brand has been well received in the market and further enhances our portfolio in the interior infrastructure segment. One of the key highlights of the current quarter is the launch of our industry's first Total Cover Assurance Program for CLP Prime plywood. This initiative reflects our confidence in product quality and reinforces our commitment to our customer satisfaction and trust.

Speaker #3: During the quarter, we introduced the Century HDF Premium Plus campaign, titled "Hera Board Ka Asli Boss," featuring cricketer Rahul Dravid and actor Saurabh Shukla. The campaign harnesses Rahul Dravid's enduring image as Mr. Dependable to build trust for the product and the brand.

Speaker #3: It is built on consumer insight that, while making long-term investments for their homes, consumers seek trusted quality above all claims. The product has been well received in the market and further enhances our portfolio in the interior infrastructure segment.

Sanjay Agarwal: It is built on consumer insight that while making long-term investment for their homes, consumers seek trusted quality over tall claims. The brand has been well received in the market and further enhances our portfolio in the interior infrastructure segment. One of the key highlights of the current quarter is the launch of our industry's first Total Cover Assurance Program for CLP Prime plywood. This initiative reflects our confidence in product quality and reinforces our commitment to our customer satisfaction and trust.

Speaker #3: One of the key highlights of the current quarter is the launch of our industry's first total cover assurance program for Club Prime Plywood. This initiative reflects our confidence in product quality and reinforces our commitment to our customers' satisfaction and trust.

Speaker #3: Now, if you buy Century Club Prime and Architect Plywood, we will compensate the full cost of that furniture if there is any problem with that furniture.

Sanjay Agarwal: If you buy Century CLP Prime and Architect Ply, we will compensate the full cost of that furniture if there is any problem with that furniture. This is the first time in India, rather maybe first time in the whole world, such a guarantee is being placed, and we are able to place it because we have the confidence in the quality, and we have tested everything in last 2 years. To further strengthen consumer connect, we also launched a new nationwide campaign featuring Aamir Khan and Chatur from "3 Idiots," highlighting the Total Cover proposition of CLP Prime. The company came up with this concept that reimburses the cost of defective plywood together with the furniture related costs arising from that defect, plywood, laminate or veneers, including labor and transportation within 10 years of the purchase.

Speaker #3: So this is the first time in India, maybe the first time in the whole world, such a guarantee is being placed. And we are able to place it because we have confidence in the quality, and we have tested everything in the last two years.

Speaker #3: To further strengthen consumer connect, we also launched a new nationwide campaign featuring Aamir Khan and Chatur from 3 Idiots, highlighting the total cover proposition of Club Prime.

Sanjay Agarwal: To further strengthen consumer connect, we also launched a new nationwide campaign featuring Aamir Khan and Chatur from "3 Idiots," highlighting the Total Cover proposition of CLP Prime. The company came up with this concept that reimburses the cost of defective plywood together with the furniture related costs arising from that defect, plywood, laminate or veneers, including labor and transportation within 10 years of the purchase.

Speaker #3: The company came up with this concept that reimburses the cost of defective plywood, together with the furniture-related costs arising from the defective plywood—laminate or veneers, adhesive, labor, and transportation—within 10 years of the purchase.

Speaker #3: This campaign reinforces Century Plywood's positioning as India's most trusted plywood brand. We are becoming increasingly customer-centric, with our efforts focused on making it easier for customers to engage with our brand.

Sanjay Agarwal: This campaign reinforces Century Ply's positioning as India's most trusted wood brand. We are becoming increasingly customer-centric with our efforts focused on making it easier for customers to engage with our brands. We have undertaken several specific initiatives to enhance the ease of doing business, simplify customer interaction, and deliver a seamless experience across every touchpoint.

Speaker #3: We have undertaken several specific initiatives to enhance the ease of doing business, simplify customer interactions, and deliver a seamless experience across every touchpoint. Financial overview: From a financial perspective, the quarter reflected improved profitability and disciplined growth.

Keshav Bhajanka: Financial overview. From a financial perspective, the quarter reflected improved profitability and disciplined growth. Our ROE improved from 13.1% to 13.5%, while return on capital, ROCE, increased from 13.4% to 14.4%, respectively. The improvement in this result ratio reflects the benefits of our strategy of sweating the assets created over the last few years. As utilization levels across our manufacturing facilities continue to improve, we are witnessing stronger operating leverage resulting in higher profitability and better returns on capital employed. With most of our recent capacity additions now operational, our focus remains on driving higher utilization, improving asset productivity, and generating sustainable returns through disciplined capital allocation rather than pursuing aggressive capital expenditure. We believe this approach will continue to enhance shareholder value by supporting profitable long-term growth. I would like to thank all our employees, channel partners, customers, shareholders, and other stakeholders for their continued trust and support.

Sanjay Agarwal: Financial overview. From a financial perspective, the quarter reflected improved profitability and disciplined growth. Our ROE improved from 13.1% to 13.5%, while return on capital, ROCE, increased from 13.4% to 14.4%, respectively. The improvement in this result ratio reflects the benefits of our strategy of sweating the assets created over the last few years. As utilization levels across our manufacturing facilities continue to improve, we are witnessing stronger operating leverage resulting in higher profitability and better returns on capital employed.

Speaker #3: Our ROE improved from 13.1% to 13.5%, while return on capital employed (ROCE) increased from 13.4% to 14.4%, respectively. The improvement in these return ratios reflects the benefits of our strategy of switching the assets created over the last few years.

Speaker #3: As utilization levels across our manufacturing facilities continue to improve, we are witnessing stronger operating leverage, resulting in higher profitability and better returns on capital employed.

Speaker #3: With most of our recent capacity additions now operational, our focus remains on driving higher utilization, improving asset productivity, and generating sustainable returns through disciplined capital allocation rather than pursuing aggressive capital expenditure.

Sanjay Agarwal: With most of our recent capacity additions now operational, our focus remains on driving higher utilization, improving asset productivity, and generating sustainable returns through disciplined capital allocation rather than pursuing aggressive capital expenditure. We believe this approach will continue to enhance shareholder value by supporting profitable long-term growth. I would like to thank all our employees, channel partners, customers, shareholders, and other stakeholders for their continued trust and support.

Speaker #3: We believe this approach will continue to enhance shareholder value while supporting profitable, long-term growth. I would like to thank all our employees, channel partners, customers, shareholders, and other stakeholders for their continued trust and support.

Speaker #3: With that, I conclude my opening remarks and thank you. We are now open to take any questions from your end.

Keshav Bhajanka: With that, I conclude my opening remarks. Thanks. We are now open to take any questions from your end.

Sanjay Agarwal: With that, I conclude my opening remarks. Thanks. We are now open to take any questions from your end.

Operator: Thank you. Ladies and gentlemen, we will now begin 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 that remain unanswered. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Sneha from Nuvama. Please go ahead.

Speaker #1: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Each participant is requested to limit himself or herself to a maximum of two questions.

Speaker #1: Time permitting, we will respond to any further questions that you may have that remain unanswered. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

Speaker #1: We take the first question from Sneha from Nuwama. Please go ahead.

Speaker #2: Good afternoon to you, and congratulations on both numbers.

[Company Representative] (Nuvama Wealth Management): Good afternoon to you, and congratulations on the growth numbers.

Sneha Talreja: Good afternoon to you, and congratulations on the growth numbers.

Speaker #3: Yeah, hi Sneha.

Keshav Bhajanka: Hi, Sneha.

Sanjay Agarwal: Hi, Sneha.

[Company Representative] (Nuvama Wealth Management): A couple of questions from my end. Wanted to understand deep down a bit on plywood segment. This is one segment which is surprising us every quarter positively. This quarter we've seen a 29% growth in terms of your volume. What's really happening here? Is the industry growing at that trend, or are we still continuing to gain market share? What's the visibility out here in terms of market share? Where are we right now, and till where can we reach? That's the first one.

Sneha Talreja: A couple of questions from my end. Wanted to understand deep down a bit on plywood segment. This is one segment which is surprising us every quarter positively. This quarter we've seen a 29% growth in terms of your volume. What's really happening here? Is the industry growing at that trend, or are we still continuing to gain market share? What's the visibility out here in terms of market share? Where are we right now, and till where can we reach? That's the first one.

Speaker #2: Questions from my end. I wanted to understand a bit more in depth about the plywood segment. This is one segment that is surprising us positively every quarter.

Speaker #2: This quarter we've seen, like, 29% growth in terms of your volume. What's really happening here—is the industry growing at that trend, or are we still continuing to gain market share?

Speaker #2: And what's the visibility out here in terms of, you know, market share? Where are we right now, and how far can we reach? That's the first one.

Speaker #2: Okay.

Nikita Bansal: Okay. Hi, Sneha. How are you?

Speaker #4: Hi Sneha, how are you?

Speaker #2: All well, Nikita. How are you?

[Company Representative] (Nuvama Wealth Management): All well, Nikita. How are you?

Sneha Talreja: All well, Nikita. How are you?

Speaker #4: Good, good. So, the thing is, in this industry, you know that picking out market share data is very difficult because of how highly unorganized it is.

Nikita Bansal: Good. The thing is, we in this industry, you know that taking out market share data is very difficult because of how highly unorganized it is. However, based on some internal working that we do, we ended last year at around 9.5% to 10% market share. I'm talking as an industry, not as a branded segment. As an industry, we were at 9.5% to 10%. My goal is to reach 15% in the coming 5 years. Where are we after Q1? Very difficult to say because we don't track this data on a quarterly level. Answering the second part of the question that is the industry growing and how have we got this growth? See, industry is growing at 5% to 7%. Whatever we are growing today has come on 2 reasons.

Speaker #4: However, this is some internal working that we do. We ended last year at around 9.5% to 10% market share. I'm talking as an industry, not as a branded segment, as an industry.

Speaker #4: We were at 9 and a half to 10%. My goal is to reach 15% in the coming 5 years. There will there are we, after Q1, very difficult to say because we don't track this data on a quarterly level.

Nikita Bansal: My goal is to reach 15% in the coming 5 years. Where are we after Q1? Very difficult to say because we don't track this data on a quarterly level. Answering the second part of the question that is the industry growing and how have we got this growth? See, industry is growing at 5% to 7%. Whatever we are growing today has come on 2 reasons.

Speaker #4: And answering the second part of the question, that is— is the industry growing and how have we got this growth? The industry is growing at 5 to 7%.

Speaker #4: Whatever we are growing today has come down to two reasons. One, definitely, there was a massive price increase that we had in Q1. We took a 7% price increase.

Nikita Bansal: One. Definitely there was a massive price increase that we had in Q1. We took a 7% price increase. That definitely a lot of dealers stocked our material. Despite that, also June was a good month as well for us. I would say it's a combination of all our efforts plus the price increase why we have got the 30% growth.

Speaker #4: Definitely a lot of dealers talked about our material. Despite that, June was also a good month for us. So I would say it's a combination of all our efforts, plus the price increase, that resulted in the 30% growth.

Speaker #2: That was very clear. Thanks, thanks, Nikita. My second question is pertaining to the balance sheet. Well, you know, Century is ticking all the boxes in terms of growth and hopefully margins will also suddenly improve, like I think Keisha, you mentioned in the interview today.

[Company Representative] (Nuvama Wealth Management): That was very clear. Thanks, Nikita. My second question is pertaining to balance sheet. While Century is clicking all the boxes in terms of growth and hopefully margins will also suddenly improve like I think Keshav, you mentioned on the interview today. What I wanted to understand is when are we going to see balance sheet improvement? Our ROCEs have been under pressure for quite some time. We have announced additional CapEx as well. What are your thoughts in terms of de-leveraging our balance sheet? Hi, Keshav.

Sneha Talreja: That was very clear. Thanks, Nikita. My second question is pertaining to balance sheet. While Century is clicking all the boxes in terms of growth and hopefully margins will also suddenly improve like I think Keshav, you mentioned on the interview today. What I wanted to understand is when are we going to see balance sheet improvement? Our ROCEs have been under pressure for quite some time. We have announced additional CapEx as well. What are your thoughts in terms of de-leveraging our balance sheet? Hi, Keshav.

Speaker #2: What I wanted to understand is, when are we going to see balance sheet improvement? Are ROFIs, you know, under pressure for quite some time?

Speaker #2: And, you know, we have announced additional capex as well. So, what are our thoughts in terms of de-leveraging our balance sheet?

Speaker #4: Hi, hi Keisha.

Speaker #3: Basically, you know, we have been improving and strengthening our balance sheet. I know it looks like the debt is going up, but that is because when you're growing at 33% in an industry which has 60 days working capital, that does have an impact.

Keshav Bhajanka: We have been improving and strengthening our balance sheet. I know it looks like the debt is going up, but that is because when you are growing at 33% in an industry which has 60 days working capital, that does take an impact. However, having said that, our cash flows remain robust. Our ROCE has improved by close to a percentage last quarter itself, and we are looking to increase ROCE further. For the short term, I think there are no large CapEx that has been planned. We are talking about a plywood unit which would have a CapEx of close to INR 200 crores and Uttar Pradesh as well. Right now, the planning is for the plywood unit in itself. There is no large CapEx planned. I think the maximum amount of cash flow that we are going to be generating will go towards the repayment of debt.

Speaker #3: However, having said that, our cash flows remain robust. Our ROC has improved by close to a percentage in the last quarter itself, and we are looking to increase ROC further.

Speaker #3: For the short term, I think there are no large capex plans that have been planned. We're talking about the plywood unit, which would have a capex of close to ₹200 crore.

Speaker #3: And in Uttar Pradesh as well, right now the planning is for the plywood unit itself. So there is no large capex planned. So I think the maximum amount of cash flow that we are going to generate will go towards the repayment of debt.

Speaker #3: So you should see the balance sheet strengthening. But when you are growing at 30% plus at that point in time, working capital requirements will be there, which is why you're seeing a slight increase in the working capital quantum.

Keshav Bhajanka: You should see the balance sheet strengthening. When you are growing at 30% plus, at that point in time, working capital requirements will be there, which is why you are seeing a slight increase in the working capital quantum.

Speaker #4: Can we expect this to improve in the second half of the year? And, you know, with NDF margins improving, like you've mentioned?

[Company Representative] (Nuvama Wealth Management): Can we expect this to improve in H2 of the year and with MDF margins improving, like you have mentioned?

Sneha Talreja: Can we expect this to improve in H2 of the year and with MDF margins improving, like you have mentioned?

Speaker #3: Hopefully earlier, but yes, there will definitely be improvement in the second half of the year.

Keshav Bhajanka: Hopefully earlier, yes, there will definitely be improvement in H2 of the year.

Speaker #4: Understood. Thanks, thanks a lot, team. All the very best. I'll get back to you.

[Company Representative] (Nuvama Wealth Management): Understood. Thanks a lot, team. All the very best. I will get back with you.

Sneha Talreja: Understood. Thanks a lot, team. All the very best. I will get back with you.

Speaker #1: Thank you. We will take the next question from the line of Rahul Agarwal from Ikigai Asset Manager. Please go ahead.

Operator: Thank you. We take the next question from the line of Rahul Agarwal from Ikigai Asset Manager. Please go ahead.

Speaker #5: Hi sir, good afternoon.

Rahul Agarwal: Hi, sir. Good afternoon to everyone.

Speaker #3: Yeah, hi Rahul.

Keshav Bhajanka: Hi, Rahul.

Sanjay Agarwal: Hi, Rahul.

Speaker #5: Sir, three quick questions. Firstly, on the value-added mix for NDF. Now, in the presentation you disclosed, it talks about—you know, you sold about 1 lakh CBM of that; 20,000 CBM was pre-laminated.

Rahul Agarwal: Sir, three quick questions. Firstly, on the value-added mix for MDF. Now the presentation you disclosed, it talks about you sold about 1 lakh cbm. Of that, 20,000 cbm was pre-laminated. I'm sure you do a much more value-added share into MDF, right? What is the right number to look at in terms of value-added MDF sold on a full year basis?

Speaker #5: But I'm sure you do much more value-added share into MDF, right? So, what is the right number to look at in terms of value-added MDF sold on a full-year basis?

Speaker #3: Hi Rahul. We don't share these numbers, Rahul. So, 3 lakh—that is the only number that we have shared, and we have done that over the course of the past many years.

Keshav Bhajanka: Hi, Rahul. We don't share these numbers out. Pre-lam, that is the only number that we have shared, and we have done that over the course of the past many years. As you know, value-added includes our SenzuraStyles, our Premium Plus category, DWR category, and other products as well. If you combine all of those, the percentage will be much higher, as you have rightly pointed out, but we don't share those numbers. What I can tell you is that right now the entire focus of the company is on increasing the value-added percentage.

Speaker #3: But as you know, value-added includes our Sandboard Plus, our Premium Plus category, DWR category, and other products as well. So if you combine all of those, the percentage would be much higher, as you have rightly pointed out.

Speaker #3: But we don't share those numbers. What I can tell you is that right now, the entire focus of the company is on increasing the value-added percentage.

Speaker #5: Okay, got that. But fair to say upwards of 40, 45%?

Rahul Agarwal: Okay, got that. Fair to say upwards of 40% and 45%?

Speaker #3: That is an estimate on your part.

Keshav Bhajanka: That is an estimate on your part.

Speaker #5: Okay, no problem. And just two last quick questions: What is the outlook for MDF in terms of full-year revenue growth and margins after this capacity increase?

Rahul Agarwal: Okay, no problem. Just last two quick questions. Outlook for MDF in terms of full-year revenue growth and margins after this capacity increase. If you could just give some ballpark for revenue growth and margins.

Speaker #5: If you could just give some ballpark for revenue growth and margins for current levels.

Keshav Bhajanka: Currently, we have stopped giving guidance. The reason we have stopped giving guidance is because the situation is very volatile. One week there is war, one week there is peace, the next week there is I don't know what. What I can say is that we have guided that we will head towards 15% plus margin. That is our objective. Our objective is to reach towards that as soon as possible. We are going to be heading towards the same. On the other end, as far as growth is concerned, I think you have seen a strong growth in Q1 as well. Going forward, we are going to try and keep a good growth trajectory for the current year. The reason we are not giving guidance right now is because the situation remains very volatile.

Speaker #3: We have stopped giving guidance. The reason we have stopped giving guidance is because the situation is very volatile. One week there is war, one week there is peace, and the next week there is, I don't know what.

Speaker #3: So, what I can say is that we have guided that we will head towards 15%+ margins. That is our objective. Our objective is to reach that as soon as possible.

Speaker #3: And we are going to be heading towards the same. On the other end, as far as growth is concerned, I think you have seen strong growth in Q1 as well.

Speaker #3: And going forward, we are going to try and keep a good growth trajectory for the current year. The reason we are not giving guidance right now is because the situation remains very volatile.

Speaker #3: Any guidance you would have given us for Q1, we would have overachieved. So, you know, the situation is a little volatile. Hence, we are refraining.

Keshav Bhajanka: Any guidance we would have given you for Q1, we would have overachieved. You know the situation is a little volatile, hence we are refraining. Maybe once stability returns, we will give you proper guidance.

Speaker #3: But maybe once stability returns, we'll give you proper guidance.

Speaker #5: Got it. And just lastly, on capex—just the cash outflow capex for fiscal '27, if you could just give me that number. Thank you so much.

Rahul Agarwal: Got it. Just lastly, on CapEx, just the cash outflow CapEx for fiscal 2027, if you could just give me that number. Thank you so much.

Speaker #3: There isn't a substantial fixed outflow in capex right now. We are investing towards the Hoshiarpur plant completion. There is some brownfield capex. A new pressing laminates facility would have cost us about ₹25 crores total capex.

Keshav Bhajanka: There isn't a substantial fixed outflow CapEx. Right now, we are investing towards the Hoshiarpur plant completion. There is some brownfield CapEx. A new press in laminates would have cost us about INR 25 crore, total CapEx. The first two presses had cost about INR 200 crore. The third press has taken about INR 25 crore because the infrastructure, et cetera, everything was ready, and we had detailed it out. An incremental brownfield CapEx in plywood and laminate is never that high usually. For MDF and particleboard, there is no large CapEx that is currently being planned.

Speaker #3: The first two presses had cost about ₹200 crore. The third press has taken about ₹25 crore because, you know, the infrastructure, etc., everything was ready and we had detailed it out.

Speaker #3: And incremental brownfield capex in plywood and laminate is never that high, usually. For MDF and particle board, there is no large capex that is currently being planned.

Speaker #5: Okay, thank you so much, and best wishes for the year.

Rahul Agarwal: Okay. Thank you so much, and best wishes for the year.

Speaker #3: Thank you.

Keshav Bhajanka: Thank you.

Speaker #1: Thank you. We will take the next question from the line of Keshav Lahoti from HDFC Securities. Please go ahead.

Operator: Thank you. We take the next question from the line of Keshav Lahoti from HDFC Securities. Please go ahead.

Speaker #6: Hi, thank you for the opportunity. Congratulations. Set of numbers. I understand war have, you know, sort of created a situation—you know, how pricing will move possibly we might not have a clue on, and surely on the margin side, but possibly, surely we can talk on the volume growth.

Keshav Lahoti: Hi. Thank you for the opportunity.

Keshav Bhajanka: Hi.

Sanjay Agarwal: Hi.

Keshav Lahoti: Congratulations on the set of numbers. I understand war has sort of created a situation, how pricing will move, possibly we might not have clue on, and surely on the margin side. Possibly, surely we can talk on the volume growth.

Keshav Bhajanka: Your voice is not very clear.

Speaker #3: Why is it not very clear?

Speaker #6: Is it better now?

Keshav Lahoti: Is it better now?

Speaker #3: Oh, of course, of course.

Keshav Bhajanka: Of course.

Sanjay Agarwal: Of course. Of course.

Speaker #6: Yeah. So I was saying, I understand because of war, you know, cost and the prices of the products are quite volatile, but surely the impact on the demand broadly doesn't look to be much because of war.

Keshav Lahoti: Yeah. I was saying, I understand because of war, cost, and the prices of the products are quite volatile. Surely the impact on the demand broadly doesn't look to be much because of war. Is it possible to give volume guidance for your products? Hello?

Speaker #6: Is it possible to give volume guidance for your product? Hello.

Speaker #3: Yes, sir.

Keshav Bhajanka: Okay, sir. Yes. It's very difficult to ascertain whether what you have said is correct or not, and whether that is going to last or not. At this point in time, I don't think we can give any volume guidance. We are refraining from the same because it remains very fluid. However, the objective will be to grow as we have done in the recent few years, and perhaps to deliver greater margins quarter after quarter.

Speaker #4: Yes, you know, it's very difficult to ascertain whether what you have said is correct or not, and whether that is going to last or not.

Speaker #4: So, at this point in time, I don't think we can give any volume guidance. We are refraining from the same because it remains very fluid.

Speaker #4: However, the objective will be to grow as we have done in the past few years, and perhaps to deliver greater margins quarter after quarter.

Speaker #6: Got it, got it. And one second question on the ply side: we have been seeing, you know, consistent outperformance in ply volume, which is sort of a sustainable number because, as you correctly highlighted, you are just at 10% market share.

Keshav Lahoti: Got it. One second question on the ply side. We have been seeing a consistent outperformance in ply volume, which is a sort of a sustainable number because still, as you correctly highlighted, you are just at 10% market share. This business can sort of grow by 10%, 15% if we take a next four, five years view?

Speaker #6: So this business can, you know, sort of grow by 10–15% if we take a next four- to five-year view.

Speaker #4: That is the aim. I believe that if we have to achieve a 15% market share over the next five years, we have to grow by twice, to 15% year on year.

Nikita Bansal: That is the aim. I believe that if we have to achieve 15% market share over the next five years, we have to grow by 12% to 15% year on year. I think that is the aim, and we always look forward to giving little reserved numbers and outperforming those numbers.

Speaker #4: So, I think that is the aim. And we always look forward to giving slightly conservative numbers and outperforming those numbers.

Speaker #6: Okay, that is good to hear. One last question from my side: how is the channel inventory at June end?

Keshav Lahoti: Okay. That is good to hear. One last question from my side. How is the channel inventory at June end?

Speaker #3: Well, July has been our highest ever monthly date, so I think it has been okay only.

Keshav Bhajanka: Well, July has been our highest ever month till date. I think it has been okay, only.

Speaker #6: Okay. Okay, good to hear that. Okay, thank you.

Keshav Lahoti: Okay. Good to hear that. Okay. Thank you.

Speaker #1: Thank you. We will take the next question from Utkarsh Nopani of Anand Rathi Shares and Stock Brokers Limited. Please go ahead.

Operator: Thank you. We take the next question from the line of Utkarsh Nipani from Anand Rathi Shares and Stock Brokers Limited. Please go ahead.

Speaker #3: Hi, Utkarsh.

Keshav Bhajanka: Hi, Utkarsh.

Sanjay Agarwal: Hi, Utkarsh.

Speaker #7: Yeah, hi.

Utkarsh Nipani: Yeah, hi.

Utkarsh Nopany: Yeah, hi.

Speaker #3: Good afternoon.

Keshav Bhajanka: Good afternoon.

Sanjay Agarwal: Good afternoon.

Speaker #7: Sir, my first question is regarding your greenfield project in UP and Odisha. As we are not looking for any large capex in the coming quarters...

Utkarsh Nipani: Sir, my first question is regarding your greenfield project in UP and Odisha. As we are not looking for any large CapEx in the coming quarter, whether there has been any change in the project timeline for UP and Odisha project?

Utkarsh Nopany: Sir, my first question is regarding your greenfield project in UP and Odisha. As we are not looking for any large CapEx in the coming quarter, whether there has been any change in the project timeline for UP and Odisha project?

Speaker #7: So, has there been any change in the project timeline for the UP and Odisha projects?

Speaker #4: So, with respect to UP, we still do not have the land in our hands. We aim to get the land before the end of this year.

Nikita Bansal: With respect to UP, we still do not have the land in our hands. We aim to get the land before this year ends. Post that, we will first start with our plywood plant. We are expecting it to go live if we receive the land on time, by 28 April 2028. Q1 FY28 is what we are looking at. In terms of Odisha, we are still in the talks with the government. We still have not chosen a land that works for us, et cetera. That will take time. Once we have more updates on that, I will provide it.

Speaker #4: Post that, we will first start with our plywood plant. We are expecting it to go live if we receive the land on time by April 28th, so Q1 of '28 is what we are looking at.

Speaker #4: In terms of Odisha, we are still in talks with the government. We have still not chosen a land that works for us, etc. So, that will take time.

Speaker #4: Once we have more updates on that, I will provide them.

Speaker #7: Okay. And for the MDF project in UP, by what timeline is it expected to come on stream?

Utkarsh Nipani: Okay. For the MDF project in UP, by what timeline it is expected to come on stream?

Utkarsh Nopany: Okay. For the MDF project in UP, by what timeline it is expected to come on stream?

Speaker #3: Currently, we have not finalized. We are still in a wait-and-watch position as far as the timing of the MDF project in UP is concerned.

Keshav Bhajanka: Currently, we have not finalized. We are still in a wait and watch position as far as the timing of the MDF project in UP is concerned. The project will definitely come, but in all likelihood it will come with a lag to the plywood unit.

Speaker #3: So the project will definitely come, but in all likelihood, it will come with a lag to the plywood unit.

Speaker #7: Okay. And sir, for MDF, we have increased our capacity in Andhra Pradesh by doing some minor capex in this quarter. So I wanted to know, is it also possible to increase our particle board capacity from two lakh forty thousand to around three lakh by doing some minor capex in the future?

Utkarsh Nipani: Okay. Sir, for MDF, we have increased our capacity in Andhra Pradesh by doing some minor CapEx in this quarter. Wanted to know, is it also possible to increase our particle board capacity from 240,000 to around 300,000 by doing some minor CapEx in future?

Utkarsh Nopany: Okay. Sir, for MDF, we have increased our capacity in Andhra Pradesh by doing some minor CapEx in this quarter. Wanted to know, is it also possible to increase our particle board capacity from 240,000 to around 300,000 by doing some minor CapEx in future?

Speaker #3: No, this was pre-designed prior to the line being purchased. We had actually purchased the line in two parts, so that we could ramp up and take advantage later when the demand started picking up.

Keshav Bhajanka: No. This was pre-designed prior to the line being purchased. We had actually purchased the line in two parts so that we could ramp up and take advantage later when the demand started picking up. This was a different form of CapEx or a different form of brownfield investment, which I don't think can be replicated. Yes, through efficiencies, we should be able to increase our capacity in particle board, but I don't think a 20%+ quantum will be likely.

Speaker #3: So this was a single, it was a different form of capex or a different form of brownfield investment, which I don't think can be replicated.

Speaker #3: Yes, through efficiencies, we should be able to increase our capacity in particle board, but I don't think that a 20% plus quantum will be likely.

Speaker #7: Okay. And sir, lastly for laminates, our volume in Q1 has regrown due to the size adjustment. So I wanted to know whether the same trend of weak volume and higher realization is likely to continue for the next three quarters.

Utkarsh Nipani: Okay. Sir, lastly, for laminate, our volume in Q1 has de-grown due to the size adjustment. Wanted to know whether the same trend of weak volume and higher realization is likely to continue for the next three quarters.

Utkarsh Nopany: Okay. Sir, lastly, for laminate, our volume in Q1 has de-grown due to the size adjustment. Wanted to know whether the same trend of weak volume and higher realization is likely to continue for the next three quarters.

Speaker #3: The objective would be to grow across all segments, whether it is HPL or compact. So, I think that we are looking to grow both in domestic in the HPL format, and in exports in the compact format.

Keshav Bhajanka: The objective would be to grow across all segments, whether it is HPL or compact. I think that we are looking to grow both in domestics in the HPL format and in exports in the compact format. Hopefully you'll see increase in both. Large sizes, we are seeing increasing traction because we are late entrants to the market.

Speaker #3: So hopefully, you'll see increases in both. But for large sizes, we are seeing increasing traction because we are late entrants to the market.

Speaker #7: Okay, sir. I just wanted to know whether we are going to see positive volume growth in the coming quarters or not in laminates.

Utkarsh Nipani: Okay. Just wanted to know whether we are going to see positive volume growth in the coming quarters or not in the laminate because of the change in the product mix.

Utkarsh Nopany: Okay. Just wanted to know whether we are going to see positive volume growth in the coming quarters or not in the laminate because of the change in the product mix.

Speaker #7: Because of the change in the product mix.

Speaker #3: Again, we have stopped giving guidance, so it's very difficult for me to tell you anything further on this. However, like I said, we are looking to grow both in domestic and export markets.

Keshav Bhajanka: Again, we have stopped giving guidance, so it is very difficult for me to tell you anything further on this. However, like I said, we are looking to grow both in domestic and in exports. Domestic, the growth is more from thin laminate, and export, the growth will be more from Compact Laminates.

Speaker #3: Domestically, the growth is more from thin laminates, and for exports, the growth will be more from compact laminates.

Speaker #7: okay. Thanks a lot, sir.

Utkarsh Nipani: Okay. Thanks a lot, sir.

Utkarsh Nopany: Okay. Thanks a lot, sir.

Speaker #1: Thank you. We will take the next question from the line of Rishikesh from Kotak Mutual Fund. Please go ahead.

Operator: Thank you. We take the next question from the line of Hrishikesh from Kotak Mutual Fund. Please go ahead.

Speaker #6: Hi, good afternoon. You highlighted the MDF trajectory improvement. Any feedback or guidance in terms of profitability improvement on the particle board side? When should we see those margins moving up?

[Analyst] (Kotak): Hi. Good afternoon. You highlighted about MDF trajectory improvement. Any feedback or guidance in terms of profitability improvement on particle board side? When should we see those margins moving up?

Hrishikesh Bhagat: Hi. Good afternoon. You highlighted about MDF trajectory improvement. Any feedback or guidance in terms of profitability improvement on particle board side? When should we see those margins moving up?

Speaker #3: Hi, Rishi. I think quarter on quarter, you will see particle board margins going up as we increase capacity utilization. So you will see a steady increase in particle board margins.

Keshav Bhajanka: I think quarter-on-quarter, you will see particle board margins going up as we increase capacity utilization. You will see a steady increase in particle board, and I think towards next year, we will see maybe close to 13% particle board margins. That is what we are gunning for.

Speaker #3: And I think towards next year, we will see maybe close to 15% particle board margins. That is what we are aiming for.

Speaker #6: Okay. Okay. Thanks.

[Analyst] (Kotak): Okay. Thanks.

Hrishikesh Bhagat: Okay. Thanks.

Speaker #1: Thank you. Participants who wish to ask a question, please press star and one. We will take the next question from the line of Ritesh Shah from Investec.

Operator: Thank you. Participants who wish to ask a question, please press star and one. We take the next question from the line of Ritesh Shah from Investec. Please go ahead.

Speaker #1: Please go ahead.

Ritesh Shah: Hi.

Speaker #6: Hi. Hi. Hi, Keshav. Namaste. Sanjay ji. Sir, a few questions. First is—Pura Furniture ka full cost waapas. Sir, what is the thought process? Is it that we are moving away from the applicator, carpenter, focusing more on the consumer? What is the thought process, sir, over here?

Keshav Bhajanka: Hi, Ritesh.

Sanjay Agarwal: Hi, Ritesh.

Ritesh Shah: Hi, Keshav. Namaste, Sanjay Agarwal.

Keshav Bhajanka: Namaste.

Sanjay Agarwal: Namaste.

Ritesh Shah: Sir, a few questions. First is full cost. Sir, what is the thought process? Is it we are moving away from applicator, carpenter, focusing more on the consumer? What is the thought process, sir, over here? You indicated two specific brands, I think Architect Ply and Club Prime. Just wanted to understand, if possible, how much do they contribute to revenues right now? What is our aspiration, given we have launched this particular nice scheme?

Speaker #6: And you indicated two specific brands—I think Architect Ply and Club Prime. Just wanted to understand, if possible, how much do they contribute to revenues right now?

Speaker #6: What is our aspiration, given that we have launched this particularly nice scheme?

Speaker #4: So, like I said in all previous calls, we never share the bifurcation between our premium and our Senz brand. So, I'm afraid I won't be able to share that.

Nikita Bansal: Like I said in previous all calls, we never share the bifurcation between our premium and our Fenix brand. I'm afraid I won't be able to share that. Going into what is exactly Total Cover and what is our focus. I believe we have always been a brand which focuses on consumer problems and trying to solve consumer problems. If you see, the first time we became Century Ply because we came up with the India's first borer and termite-proof plywood. It was a problem the consumer was facing, and we solved for it. If you even see during COVID years, we have rapidly done innovation. We did ViroKill, we did Firewall, which is the fire-resistant plywood. Again, both were first time in India. Again, Total Cover is another one initiative which is again focusing on the problem of the consumer.

Speaker #4: But, going into what exactly is total cover and what is our focus. So, I believe we have always been a brand that focuses on consumer problems and tries to solve consumer problems.

Speaker #4: If you look at the first time we became Century Ply, it was because we introduced India's first borer and termite-proof plywood. This was a problem that consumers were facing, and we solved it.

Nikita Bansal: If you see, the first time we became Century Ply because we came up with the India's first borer and termite-proof plywood. It was a problem the consumer was facing, and we solved for it. If you even see during COVID years, we have rapidly done innovation. We did ViroKill, we did Firewall, which is the fire-resistant plywood. Again, both were first time in India. Again, Total Cover is another one initiative which is again focusing on the problem of the consumer.

Speaker #4: If you even see, during the COVID years, we had rapidly done innovation. We did Virokill, we did Firewall, which is the fire-resistant plywood. Again, both were first time in India.

Speaker #4: So again, Total Cover is another one initiative which is again focusing on the problem of the consumer. The problem of the consumer is that today, when something goes wrong with the plywood, they are not concerned just about the plywood.

Nikita Bansal: The problem of the consumer is that today when something goes wrong with the plywood, they are not concerned just about the plywood. They are concerned about their furniture. If the plywood costs INR 3,000, the furniture maybe is costing them INR 15,000 to 20,000. For them, if anything goes wrong, they are worried about the total cost that has gone into making that furniture. Because we are so confident about our manufacturing excellence and our product quality, that is why we are able to give such an assurance. This is another way to even assure the customer that, look, with Century Ply, you can remain Bravo Basical. That you'll be able to trust us, that the company is always standing with you no matter what. If anything happens, here there is an online portal where you can raise your claim.

Speaker #4: They are concerned about their furniture, because today, if the plywood costs ₹3,000, the furniture may be costing them ₹15,000 to ₹20,000.

Speaker #4: So for them, if anything goes wrong, they are worried about the total costs that have gone into making that furniture. And because we are so confident about our manufacturing excellence and our product quality, that is why we are able to give such an assurance.

Nikita Bansal: Because we are so confident about our manufacturing excellence and our product quality, that is why we are able to give such an assurance. This is another way to even assure the customer that, look, with Century Ply, you can remain Bravo Basical. That you'll be able to trust us, that the company is always standing with you no matter what. If anything happens, here there is an online portal where you can raise your claim.

Speaker #4: So this is another way to even assure the customer that, look, if anything, this is Century Ply—you can remain relaxed, basically. That you will always be able to trust us.

Speaker #4: That the company is always standing with you, no matter what. And if anything happens here, there is an online portal where you can raise your claim.

Speaker #6: Sure, that helps. If I have to just flip the question around to better understand the growth in the ply segment, can you broadly explain, at the industry level, how the market is evolving between 303 and 710?

Ritesh Shah: Sure. That helps. If I have to just flip the question around to better understand the growth on the ply segment. If you can explain broadly at the industry level, how is the market evolving between IS 303 and IS 710? Is the market shifting towards IS 710, and that is where Century is benefiting?

Speaker #6: Is the market shifting towards 710, and is that where Century is benefiting?

Speaker #4: I wish we had such details. It’s very difficult to get such details. I’m afraid it’s not possible to answer.

Nikita Bansal: I wish we had such details. Very difficult to get such details. I'm afraid, not possible to answer.

Speaker #6: Okay, fair. A second question is, you indicated, Amir Khan Chatur, would it be possible for you to qualify how much will be the brand investment for the full fiscal—absolute or as a percentage of revenues, please?

Ritesh Shah: Okay, fair. Second question is on, you indicated Aamir Khan, Chatur. Would it be possible for you to qualify how much will be the brand investment for the full fiscal? Absolute or percentage of revenues, please.

Speaker #4: We usually do 4–4.5%, but this includes everything that we spend towards branding and marketing and our teams and everything. So, we do not indicate further bifurcation of it.

Nikita Bansal: We usually do 4.5%, but this includes everything that we spend towards branding, marketing, our schemes, and everything. We do not indicate further bifurcation of this.

Speaker #6: Sure. And the third question—probably Keshav can take it. You indicated very limited capex incrementally, but I think earlier we had given an aspiration of ₹12,000 crore by 2031.

Ritesh Shah: Sure. Third question, probably Keshav can take it. You indicated very limited CapEx incrementally, but I think earlier we had given an aspiration of INR 12,000 crore by 2031. Just wanted to understand if we had to, say, double the revenues, what is the incremental CapEx that we are looking at over the next four, five years? How do we plan to fund it?

Speaker #6: So, just wanted to understand—if we had to, say, double the revenues, what is the incremental capex that we are looking at over, say, the next four or five years?

Speaker #6: How do we plan to fund it?

Speaker #3: Yeah, I think currently, our total asset pool as of now can give us close to ₹8,000 crore worth of revenue. And we have been at ₹7,500 to ₹8,000 crore.

Keshav Bhajanka: Yeah. I think currently our total asset pool as of now can give us close to INR 8,000 crore with our revenue anywhere between INR 7,500 to 8,000 crore. Going forward, what I believe is that to reach that INR 12,000 figure, we need to have INR 4,000 crore additional revenue. That will be an asset turnover of between 1.5, 1.6 to 2. We are taking a figure of INR 2,500 crore, but this is ballpark, and it depends on which category, which segment requires how much investment. I think we will be able to update you on this as and when we come closer to capacity utilization. We'll start planning for additional capacities.

Speaker #3: Going forward, what I believe is that to reach that 12,000 figure, we need to have ₹4,000 crores additional revenue. That will mean, I think, an asset turnover of between 1.5 and 1.6 to 2.

Speaker #3: We are taking a figure of ₹2,500 crore, but this is a ballpark, and it depends on which category or which segment requires how much investment. So, I think we will be able to update you on this as and when we come closer to capacity utilization. Then we'll start planning for additional capacity.

Speaker #6: Okay, just a follow-up. Do we have any headline numbers on gearing, or any aspiration that we have to reduce our net gearing to a certain level by, say, a year out or two years from now?

Ritesh Shah: Okay. Just a follow-up. Any headline numbers on gearing that we have or any aspiration that we have that we want to reduce our net gearing to so much by say year out or two years?

Speaker #3: Our target has always been that our long-term debt should be within our EBITDA. So that is the number that we are moving towards.

Keshav Bhajanka: Our target has always been that our long-term debt should be within our EBITDA. That is the number that we are moving towards. Working capital debt, yes, when you're growing at 20% to 30%, then working capital debt does tend to increase, but that plays itself out over a year or two. I think that long-term debt within 1 time of EBITDA, that is a number that we are working towards and we will achieve it.

Speaker #3: Working capital debt—yes, when you're growing at 20-30 percent, then working capital debt does tend to increase. But that plays itself out over a year or two.

Speaker #3: So I think that long-term debt within one time of EBITDA—that is the number that we are working towards. And we will achieve it.

Speaker #6: Sure. Just one last question on the total cover thing. I presume this is the first time in the industry that we are doing it?

Ritesh Shah: Sure. Just last question on the Total Cover thing. I presume this is for the first time in the industry that we are doing it?

Speaker #4: Yes.

Nikita Bansal: Yes.

Speaker #6: Yeah. So how will this be accounted for, basically, in the P&L? Will there be a claim ratio or some line item? Probably, it might be a way for us to understand premium sales via two brands.

Ritesh Shah: Yeah. How will this be accounted, basically in the P&L? Will there be a claim ratio or some line item? Probably it might be a way for us to understand premium sales via two brands.

Speaker #4: Okay. So the thing is that we've actually been doing this unofficially for the last two years, two, two and a half years. So it started with one complaint, and then slowly we started learning, and because such a claim cannot be made overnight.

Nikita Bansal: Okay. The thing is that we've actually been doing this unofficially for the last 2 years, to 2 and a half years. It started with 1 complaint and then slowly we started learning and because such a claim cannot be made overnight, it requires a very big infrastructure that needs to be created because it's very service-oriented. As well as we need to have complete detailed understanding of how to handle every complaint. It took us almost 2 years to build that infrastructure and because of which we've just launched this. It's already part of our thing. Having said that, we have the lowest claim ratio in the industry. One second. Our claim ratio is actually 0.06% of our thing. Even if with this ad it increases, it won't be much.

Speaker #4: It requires a very big infrastructure that needs to be created because it's very service-oriented. As well, we need to have a complete, detailed understanding of how to handle every complaint.

Nikita Bansal: As well as we need to have complete detailed understanding of how to handle every complaint. It took us almost 2 years to build that infrastructure and because of which we've just launched this. It's already part of our thing. Having said that, we have the lowest claim ratio in the industry. One second. Our claim ratio is actually 0.06% of our thing. Even if with this ad it increases, it won't be much.

Speaker #4: So it took us almost two years to build that infrastructure, and because of that, we've just launched this. So it's already part of our thing.

Speaker #4: And having said that, we have the lowest claim ratio in the industry. One second. So, our claim ratio is actually 0.06 percent of our total.

Speaker #4: So, even if with this ad it increases, it won't be much. The purpose of the ad is actually to give confidence to the consumer that there might be millions of brands which are claiming everything, but we are a brand which will stand by you.

Nikita Bansal: The purpose of the ad is actually to give confidence to the consumer that there might be millions of brands which are claiming everything, but we are a brand which will stand by you.

Speaker #6: Sure, this helps. Sanjay ji, just one last request. Sir, is it possible—how should we understand the growth in the ply industry? I understand we are doing beautifully well.

Ritesh Shah: Sure. This helps. Sanjay, just a last request. Sir, is it possible, how should we understand the growth in the ply industry? I understand we are doing beautifully well, but to appreciate it, if you can help us provide some vectors how to think about, that would be quite helpful. Thank you.

Speaker #6: But to appreciate it, if you can help us provide some vectors—how to think about it—that would be quite helpful. Thank you.

Speaker #3: I can only, you know, give the credit to the manufacturing team for creating the best quality possible, and the marketing team's aggressiveness. And there is some gap if you want—of course, theoretical gap—in a lot of gaps we can give, but there is no point in giving you that.

Sanjay Agarwal: I can only give the credit to the manufacturing team to create the best quality possible and the marketing team's unrestness. There is gyan, if you want, of course, theoretical gyan, there's a lot of gyan we can give, but there's no point in giving you that. The team actually, the sales team right now is in a kind of a big, you can say, alignment and motivated. That really gives a great result for us actually.

Speaker #3: So the team actually, the sales team right now is in a kind of a big, you can say, alignment and motivated. So that really gives a great result for us, actually.

Speaker #6: Sure, sir. All the very best. Thank you. Thank you so much.

Ritesh Shah: Sure, sir. All the very best. Thank you. Thank you so much.

Speaker #3: Yes.

Sanjay Agarwal: Yes. Thank you.

Speaker #6: Thank you, Keshav. Thanks. Thank you. We will take the next question from the line of Anu Parekh from Anand Rathi Shares and Stock Brokers Limited.

Ritesh Shah: Thanks.

Operator: Thank you. We take the next question from the line of Anup Parekh from Anand Rathi Shares and Stock Brokers Limited. Please go ahead.

Speaker #6: Please go ahead.

Speaker #3: Hi, Anu.

Keshav Bhajanka: Hi, Anup.

Sanjay Agarwal: Hi, Anup.

Speaker #2: Yeah, yeah. Hi, sir. So, I have just one question. What would be the sustainable ROC in our MDF and particle board business? Our particle board capex cost per unit is around 24% higher compared to MDF.

Anup Parekh: Yeah. Hi, sir. Sir, I have just one question. What would be the sustainable ROC in our MDF and particle board business? Particle board CapEx cost per unit is around 24% higher compared to MDF, whereas its realization is 36% lower compared to MDF. Why do we plan to operate in this segment as it is an ROC dilutive step for the company? Just wanted to understand.

Anup Parakh: Yeah. Hi, sir. Sir, I have just one question. What would be the sustainable ROC in our MDF and particle board business? Particle board CapEx cost per unit is around 24% higher compared to MDF, whereas its realization is 36% lower compared to MDF. Why do we plan to operate in this segment as it is an ROC dilutive step for the company? Just wanted to understand.

Speaker #2: Whereas its realization is 36% lower compared to MDF. So, why do we plan to operate in this segment as it is, a ROC-dilutive step for the company?

Speaker #2: So, I just wanted to understand your...

Speaker #3: I think there is something— I think that your numbers maybe aren't based on our capacity as we set up capacity, because I don't think they're aligning with the way that we think of capacity.

Keshav Bhajanka: I think that your numbers maybe aren't based on our capacity, because I don't think they're aligning with the way that we think of capacity. I think for both MDF and particle board, the objective will be to move towards the 20% ROC, which has been the traditional benchmark for the hurdle rate that we use as a new product. It is taking time, but I believe in both segments we will be moving towards the same, and I think it is possible to hit 20% ROC in both the segments as well.

Speaker #3: I think for both MDF and particle board, the objective will be to move towards the 20% RoC, which has been the traditional benchmark for the vertical rate that we use to assess any new product.

Speaker #3: It is taking time, but I believe, in both segments, we will be moving towards the same. And I think it is possible to hit 20% ROC in both the segments as well.

Speaker #2: Okay, sir. Thank you so much.

Anup Parekh: Okay, sir. Thank you so much.

Anup Parakh: Okay, sir. Thank you so much.

Speaker #6: Thank you. Participants who wish to ask a question, please press star then one. We will take the next question from the line of Rahul Agarwal from Ikigai Asset Manager.

Operator: Thank you. Participants who wish to ask a question, please press star and one. We take the next question from the line of Rahul Agarwal from Ikigai Asset Manager. Please go ahead.

Speaker #6: Please go ahead.

Speaker #3: Yeah. Hi, Rahul. Welcome back.

Keshav Bhajanka: Hi, Rahul. Welcome back.

Sanjay Agarwal: Hi, Rahul. Welcome back.

Speaker #4: Yeah, thank you. Thank you for the follow-up, sir. Just one question on the logistics business—could you help us with the outlook? Exactly what is the business operation there, and, you know, two to three years down the line, how are we thinking of this business?

Rahul Agarwal: Thank you. Thank you for the follow-up, sir. Just one question on the logistics business. Could you help us for the outlook, exactly what is the business operation there, and 2 to 3 years down the line, how are we thinking of this business? Will it be part of Centuryply? How is the structure right now, and what is the overall top-down thought process, please? Thank you.

Speaker #4: Will it be part of CenturyPly? How is the structure right now? And what is the overall top-down thought process, please? Thank you.

Speaker #3: Rahul, our overall objective is always to give you the best shareholder value. So I think this business, after a lot of effort, has now stood; it is now something that is generating positive EBITDA and positive cash flow for the company.

Keshav Bhajanka: Rahul, our overall objective is always to give you the best shareholder value. I think this business, after a lot of effort, has now stood. It is now something that is generating a +EBITDA, +cash flow for the company. Going forward, we are going to evaluate because, as you know, this is not our core segment. Having said that, we are looking at maybe if a strategic partner comes in going forward, but it'll all have to be at the valuation that is beneficial to Centuryply India Limited. That is the current guidance that we can give on the business.

Speaker #3: And going forward, we are going to evaluate, because as you know, this is not our core segment. Having said that, we are looking at maybe, if a strategic partner comes in going forward, but it will all have to be at a valuation that is beneficial to Centuryply Virginia Limited.

Speaker #3: So, that is the current guidance that we think about the business.

Speaker #4: Just in terms of, you know, the revenue mix right now—you know, what are we billing for, and how does the outlook look for the next 24 months?

Rahul Agarwal: Just in terms of the revenue mix right now, what are we billing for? How does the outlook look like for the next 24 months? Can you just highlight some business operations?

Speaker #4: We just highlighted some business operations.

Speaker #3: I think that currently we are only operating half of Phase One of the new board project that we have taken up, so there’s a substantial likelihood for growth in revenue as the new capacity comes online.

Keshav Bhajanka: I think that currently we are only operating half of phase 1 of the new port project that we have taken up. There's growth in revenue. There's a substantial likelihood for growth in revenue. As far as the CFS business is concerned, it has also turned around. Kolkata now, in terms of port infrastructure, is doing particularly well. I think we'll be looking at double-digit plus growth in the CFS business as well.

Speaker #3: As far as the CFS business is concerned, it has also turned around, and Calcutta now, in terms of board infrastructure, is being particularly well.

Speaker #3: So, I think we'll be looking at double-digit-plus growth in the CFS business as well.

Speaker #4: Okay. Okay. Thank you so much. Thank you.

Rahul Agarwal: Okay. Thank you so much.

Keshav Bhajanka: Thank you.

Speaker #6: Thank you. Participants, if you wish to ask a question, please press star and one. We will take the next question from the line of Keshav Lahoti from HDFC Securities.

Operator: Thank you. Participants, if you wish to ask a question, please press star and one. We take the next question from the line of Keshav Lahoti from HDFC Securities. Please go ahead.

Speaker #6: Please go ahead.

Speaker #4: thank you for the opportunity.

Keshav Lahoti: Thank you for the opportunity.

Speaker #3: Hi, Keshav.

Keshav Bhajanka: Hi, Keshav.

Sanjay Agarwal: Hi, Keshav.

Speaker #4: Hello. Hi, sir. I heard that this UP plant will come by Q1 FY28 for the ply, because earlier I remember— The voice is so clear,

Keshav Lahoti: Hello. Hi, sir. I heard this UP plant will come by Q1 FY28 for the ply.

Keshav Bhajanka: The voice is not clear, Keshav. Yeah, the voice is not so clear.

Sanjay Agarwal: The voice is not clear, Keshav. Yeah, the voice is not so clear.

Speaker #3: Keshav: Yeah, the voice is not so clear.

Speaker #6: Hello. I hope it will be better now.

Keshav Lahoti: Hello. I hope it would be better now.

Speaker #3: Absolutely.

Keshav Bhajanka: Absolutely.

Sanjay Agarwal: Absolutely.

Speaker #6: Yeah, so the UP ply plant is expected by Q1 FY28, right? Because earlier I remember the target was more like Q1 FY29.

Keshav Lahoti: Yeah. The UP ply plant is expected by Q1 FY28, right? Because earlier I remember the target was more like Q1 FY29.

Nikita Bansal: It is 28 April, so it's 28/29.

Speaker #4: It is April 28th, so it's 28, 29.

Keshav Lahoti: 28 April. Got it. Okay. One last question from my side. What sort of price hike you have taken in ply? You highlighted 7%. What about other segments?

Speaker #6: April 28th, got it. Okay. And one last question from my side: what sort of price hike have you taken in ply? You highlighted 7%?

Speaker #6: What about other segments?

Speaker #3: It has been variable across other segments. In MDF, for instance, it was close to 15%, but some of that has already been passed back to the market.

Keshav Bhajanka: It has been variable across other segments. In MDF, for instance, it was close to 15%, but some of that has already been passed back to the market. In laminates, it was close to 10% for domestic and maybe slightly lower for exports. It has been across different segments at different points in times. What has happened is in certain segments, we have had to roll that back also as raw material prices kept on moving. Like I mentioned, in MDF, we've already rolled back a large part of the price increase that was taken.

Speaker #3: In laminate, it was close to 10% for domestic and maybe slightly lower for exports. So, it has been across different segments, at different points in time, but what has happened is, in certain segments, we have had to roll that back also as long as prices kept on moving.

Speaker #3: Like I mentioned, in MDF, we've already rolled back a large part of the price increase that was implemented.

Speaker #6: Got it. I'll rephrase my question in another way. Let's say, how much of the price hike is today, you know, possibly there in the market?

Keshav Lahoti: Got it. I'll rephrase my question in another way. Let's say, how much of the price hike is today possibly there in the market?

Speaker #3: Again, this is difficult to say from different segments, but from pre-board levels, there is a price hike across most segments.

Keshav Bhajanka: Again, this is difficult to say from different segments, but from pre-war levels, there is price hike across most segments.

Speaker #6: Got it. That is helpful. Thank you. Thank you. Participants who wish to ask a question, please press star one. Are there any further questions from the participants?

Keshav Lahoti: Got it. That is helpful. Thank you.

Operator: Thank you. Participants who wish to ask a question, please press star and one. As there are no further questions from the participants, I would now like to hand the conference over to Mr. Sanjay Agarwal for his closing comments.

Speaker #6: I would now like to hand the conference over to Mr. Sanjay Agarwal for his closing comments.

Speaker #3: Thanks, everyone, for your insightful questions and continued interest in the company. We are encouraged by the strong performance delivered during FY27 and remain confident about sustaining the growth momentum across our businesses.

Keshav Bhajanka: Thanks, everyone, for your insightful questions and continued interest in the company. We are encouraged by the strong performance delivered during FY27 and remain confident about sustaining the growth momentum across our businesses. We sincerely appreciate your continued support, trust, and we look forward to interacting with you again after our next quarterly results. Thank you. Have a great day.

Sanjay Agarwal: Thanks, everyone, for your insightful questions and continued interest in the company. We are encouraged by the strong performance delivered during FY27 and remain confident about sustaining the growth momentum across our businesses. We sincerely appreciate your continued support, trust, and we look forward to interacting with you again after our next quarterly results. Thank you. Have a great day.

Speaker #3: We sincerely appreciate your continued support and trust, and we look forward to interacting with you again after our next quarterly results. Thank you. Have a great day.

Speaker #6: Thank you, sir. On behalf of SKP Securities Limited, that concludes the conference. Thank you for joining us. Ladies and chairmen, you may now disconnect your lines.

Operator: Thank you, sir. On behalf of SKP Securities Limited, that concludes the conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your line.

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Q1 2027 Century Plyboards (India) Ltd Earnings Call

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