27-05-2025
Dhabriya Polywood Ltd (BOM:538715) Q4 2025 Earnings Call Highlights: Strong Revenue Growth ...
Release Date: May 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Dhabriya Polywood Ltd (BOM:538715) reported a healthy year-on-year revenue growth of 15.9% for Q4 FY25, driven by demand across all product segments.
The company's EBITDA margin improved by 20 basis points year-on-year to 16.1%, attributed to a better product mix and improved operating efficiencies.
Profit after tax grew by 32.3% year-on-year, with the PAT margin increasing by 110 basis points to 8.5%.
The company maintains a robust order book exceeding INR 140 crores, providing strong revenue visibility.
Dhabriya Polywood Ltd plans a capital expenditure of INR 50 to 60 crores over the next 2 to 3 years, primarily financed through internal accruals, reflecting strong cash generation capabilities.
The company faced challenges in achieving its expected revenue growth due to factors like extended rainy seasons and restrictions on construction activities.
Despite a strong order book, the company's growth was lower than anticipated, with only an 11% increase in revenue for FY25.
The modular furniture segment, although growing, operates at lower margins compared to other segments.
Capacity utilization for key segments like PVC profile extrusion and UPVC windows remains relatively low, at 53% and 40% respectively.
The company faces competition from both organized and unorganized players in the modular furniture market, which could impact market share and pricing strategies.
Warning! GuruFocus has detected 1 Warning Sign with BOM:538715.
Q: Can you share the hits and misses for FY25 and your growth outlook for FY26? A: In FY25, we achieved a top line of INR 235 crores, an 11% increase from the previous year. However, we faced challenges such as an extended rainy season and restrictions on construction activities, which impacted our revenue. For FY26, we are optimistic about achieving a 25% year-on-year growth, supported by a strong order book and market penetration efforts. - Mr. Divijay Dhabriya, Chairman and Managing Director.
Q: What is the expected capital expenditure for the next few years, and how will it be financed? A: We plan to invest INR 50 to 60 crores over the next 2 to 3 years, primarily for establishing a dedicated manufacturing facility for WPC doors and enhancing capacity at our southern India plants. This investment will be financed largely through internal accruals, reflecting our strong cash generation capabilities. - Mr. Hidesh Agarwal, Chief Financial Officer.
Q: What are the current capacity utilization rates, and what are your plans for capacity expansion? A: For FY25, the capacity utilization for PVC profile extrusion was around 53%, and for UPVC windows, it was 40%. We are planning a capital expenditure to enhance capacities, particularly in South India, to support our growth plans. - Mr. Hidesh Agarwal, Chief Financial Officer.
Q: How do you plan to compete with unorganized players in the modular furniture segment? A: Our strategy focuses on design and execution capabilities, offering a comprehensive range of products with upgraded designs and patterns. We leverage our organized presence across India, digital availability, and physical infrastructure to differentiate ourselves from unorganized players. - Mr. Divijay Dhabriya, Chairman and Managing Director.
Q: What is your guidance on margins and sales growth for the next few years? A: We are confident in maintaining our current margins, supported by our focus on high-margin solutions and stable raw material pricing. We expect sales growth to exceed 20% over the next 3 to 5 years, driven by our expanded product range and market penetration efforts. - Mr. Hidesh Agarwal, Chief Financial Officer.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
