Ladies and gentlemen, good day and welcome to Century Plyboards, I'm sorry, Century Plyboards Limited's Q3 FY 2025 Result Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the management's opening remarks. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Navin Agarwal, Head Institutional Equities. Thank you, and over to you, sir. 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, along with Mr. Keshav Bhajanka, Executive Director, Mrs. Nikita Bansal, Executive Director, Mr. Arun Julasaria, CFO, and Mr. Sumant Wattas, CEO for the MDF 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. Thank you, Navin. Thanks for hosting the call for us. Good afternoon, ladies and gentlemen. Welcome to the FY 2025 Q3 Earnings Call for Century Ply. Before we begin, I would like to provide a standard disclaimer. This discussion will focus on the company's historical performance and future prospects, and is not intended as an invitation to invest in the company. The results and the analytical presentation have been shared with you and are available on the stock exchange website. I assume you have reviewed this, so I won't go over the figures in detail. The Q3 FY 2025 results align with our expectations. Year-over-year, standalone revenue saw a solid 10.3% increase, rising from INR 910 crore to INR 1,003 crore, while consolidated revenue grew by 20.7% from INR 947 crore to INR 1,143 crore. The company's overall EBITDA margin across all segments stood at 11.5% in Q3, down from 12.6% in Q2. This decline is primarily due to lower volumes in Q3 compared to Q2, which is typical, given the festive season in Q3. The plywood segment is performing well, ranking among the fastest-growing segments in the building material industry. It recorded a 19.2% year-on-year revenue growth in Q3, with a nine-month FY 2025 increase of 18.5% over nine-month FY 2024. The EBITDA margin for nine-month FY 2025 rose to 14%, up from 12.1% in nine-month FY 2024, driven mainly by higher volumes. The laminate segment is facing challenges, with revenue declining both year-on-year and Q-on-Q. Despite sales pressure, the company maintained Q3 EBITDA at Q2 level by optimizing marketing expenditures. Standalone MDF revenue remained relatively flat Q-on-Q, with a 2.6% year-on-year growth. However, standalone EBITDA improved to 16% in Q3 from Q2 due to better production efficiency. On a consolidated level, MDF revenue grew by 7% quarter-on-quarter and an impressive 53% on year-on-year. Notably, our newly established plant at Badvel is now EBITDA positive. The particleboard segment experienced a 3.1% Y-on-Y revenue decline, with an EBITDA margin of 4.8% in Q4. This was primarily due to lower volumes and increased raw material costs. We are setting up a continuous process facility aimed at improving quality and reducing costs. The operations are expected to commence in the first quater of next fiscal year. While we anticipate growth and profitability to improve once the facility is operational, growth may remain flat until then, with continued pressure on margins. With that, I conclude my opening remarks and welcome any questions you may have. Thank you. Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask questions may press star and one on their touch-tone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use the handset only while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shubham Kadhi from 3A Financial Services. Please go ahead. Hello. Hello, sir. Yeah. Hi, Shubham. Hello, sir. Regarding what is your outlook on the timber prices globally for the next one or two years? Timber prices globally? Keshav, you have some idea? Nikita, if you have some idea. I don't have any idea about the global prices. I will just take that up. If you look at imports into India in terms of timber imports, they are not very substantial as far as our industry is concerned. People have started importing some amount of chips and some amount of pulp, which means that domestic prices are now more or less falling in line with international prices. So the only conclusion we can draw here is that going forward, there will be the possibility to import chips if prices rise further. But having said that, we don't see the scope for prices rising much because of this disparity. Okay, sir. And so mainly, if we see our domestic prices, as you said, are going to be in line with global. So when can we expect them to fall? Previously, you had said the cycle will continue for another year or so. Suppose that, can we see an improvement in margins? S o again, the same statement I made last time. The hope is that within that time period, prices will start reducing. As of now, it's not happened. But going forward, definitely, the prices today seem to be on a much more elevated level. So I think that within the next year or two, they will normalize. All right, sir. That's it from my end. I wish you the very best. Thank you. Thank you. The next question is from the line of Bhavin Rupani from Investec. Please go ahead. Hi, sir. Thank you so much for the opportunity. My first question is related to plywood. Sir, in Q2, we had imported timbers for plywood from various Southeast Asian countries, including Brazil, Africa. Now, given INR is depreciating against USD, do you think we are still better off if we import, or are we increasing our sourcing from the domestic players now? There is a purchase decision process that we have. We keep evaluating from time to time. There are even various types: acacia, eucalyptus. There are various forms of material also that we can get in both. It's not necessarily just eucalyptus. There is also acacia. There is also pine. There are various raw material options that are available. We keep deciding basis pricing and what is the processing cost of that in our factories because a lot of the things that we get, we save a lot in terms of drying because they come in the dried state. I don't think it's a simplistic answer just because USD cost is a concern right now, and we will have to change our decision. Currently, we don't, but we keep evaluating it. It's very dynamic. It also depends on what is the pricing at that moment in the thing. Currently, we are continuing with import. Things may change in a month, but as of now, it is still making sense to continue with import. What is the proportion of imports as of now? So currently, I would say that we are 75%-80% depending on import for plywood raw materials, and about 20% is domestic. Got it. And we have also committed INR 150 crores for plywood. Can you throw some light here? What is the location? What is the capacity? Yeah. So we are planning to put up our plant in Hoshiarpur. We had actually declared this a little while back, but then we had put it on hold because of the raw material fluctuation, and we had also started evaluating another location, which is Odisha, Andhra Pradesh, Border, etc. So after all contemplation, we have come to the conclusion that currently, it makes sense to put up our plant in Hoshiarpur. The work has started in the planning stages. We already have the land, and some basic work had already been done in the first plan that we had gone ahead about a year and a half back. So I think it will be a year from now where we will have the plant ready and operational. In the meantime, we are already augmenting capacity in our existing plants. We have a plant in West in Kandla, so we are augmenting capacity there. Some have already happened. Some will happen more in the next three months, three to six months. So because we are growing, we need to keep ensuring that we are increasing our capacity. I hope I've been able to answer your question. Yes, a follow-up on that. So what is the proposed capacity on this new plant? So it would be about per day capacity, about 50,000 into 25 working days. 50,000? We work on MA, so that would be about. What would it be in terms of? Okay. Fair enough. And what is our current plywood capacity, and what is the incremental brownfield that you are working on, and where will our capacity post this brownfield work? Hello? Ma'am, you're not audible right now. Sorry. Can you repeat your question? What was your follow-up question? What is our current plywood capacity? And you did mention that we are working on some Brownfield expansions at Kandla. So what would be our capacity post the Brownfield expansions? Okay. So currently, we have about 340,000 CBM capacity, and I think we will be expanding it by another. I will circle back with the exact figures because I know everything in MA, and I'll just have to convert it into CBM and let you know. So I'll circle back on this in the next five minutes and let you know. All right. My second question is related to laminates. Our new laminate plant has started at a capacity of almost 9 lakh sheets. Currently, if we reduce standalone volumes from the consolidated volumes, the volumes for subsidiary comes to somewhere around 110,000 sheets, which means we are running at almost 50% utilization, right? However, we still seem to have been making bigger losses over a year. What do you think? What is the reason behind this, and when do we think we will break even from this plant? So again, when you look at this capacity, the number of sheets that comes in the form of quantity. But it can be a sheet of six or it can be a sheet of one. Now, of course, if it is a sheet of one the profitability is going to be far lower. If it is a sheet of six the realization profitability both will be far higher. So because of this, I think currently, the numbers that you are seeing, they are slightly skewed. They are skewed towards lower value products. Hence, you're seeing in terms of quantity, a good increase, but in terms of value, a lower increase. So going forward, the capacity utilization is going to be far higher. I think here, rather than looking at it from the point of view of numbers, we should look at it from the point of value. Got it. And when do you think we will break even? Some value or utilizations, if you have it in your mind? Next year, by Q2, we should be looking at breaking even, only as far as laminate is concerned. Okay. And any breakup over year possible? What is the domestic volume right now? Domestic versus exports, what is it right now? We don't share that information. Got it. Next question is related to particle boards. How should we understand the utilization of particle board for year one and year two? [crosstalk] Sorry, I couldn't hear the question. Can you repeat that one, please? Can you repeat the question, please? Mr. Rupani? Yes, so next question is related to particle boards. How should one understand the utilization of particle board for year one and year two? For the new capacity? Yes, sir. Once the new capacity comes on board, we will pretty much be putting a hold on the current capacity. The volume will be transferred to the new line because the operating parameters in the new line will be far better. It's a continuous press versus a multi-light press, which we currently have. By definition, wastage will be lower, resin consumption will be lower, and laminate will be higher. Within the first year, we will be able to hit close to 50% plus capacity utilization of the standalone new line capacity. Second year onwards, we'll ramp up. Got it. And sir, last question is related to tax rates. So we have two new plants, particle board and laminates. I'm presuming tax rate over there are lower. So how should one understand what would be the blended tax rate for Century as a whole? The tax rate for the B unit unit for Century Panels is lower, but the tax rate for a Chennai plant is going to be in line with the tax rate for the company. So I think CFO can answer this better, but the basic lower tax benefit that we'll get will be from Badvel, which means from the new MDF plant, the new laminate plant, and the new [audio distortion]. CFO, if you could please clarify. Yes, Keshav. Particle board plant at Chennai, it's coming in the umbrella of Century Ply only. Their applicable tax rate is 25%. And new company, which we have known, Century Panels, which is running our new MDF and new laminate and new PVC board plant, their tax rate is 15%. Sir, any sense on the blended rate? It could be somewhere around 23%[audio distortion]. It depends on the profitability of both, so it's difficult to imagine at the moment. You can say in Badvel plant, we will have a return versus this financial year. We may not have a payback only one year depending upon what profitability we will get next year. Got it. Fair enough, sir. Thank you so much. I would like to just answer your question on plywood. So the Hoshiarpur capacity at full utilization would be about 80,000 CBM. And as far as the expansion in our West and some other factories, it's about 15,000-20,000 CBM. Currently, we are already at a very high utilization percentage. So because of that, we are expanding. So I think we are at 90%-95% utilization capacity already. Thank you, ma'am. The next question is from the line of Hrishikesh Chandrakant Bhagat from Kotak AMC. Please go ahead. On the MDF South capacity, is it fully 950 CBM that is installed, or is it lower today? So right now, it is a bit lower. I would say the capacity right now is more around 750- 800 CBM per day. When we take the press extension, the capacity will reach to 950 CBM to about 1,000 CBM that you mentioned. Recently, we've seen a slight increase in capacity on account of installation of preheater. So just to summarize, right now, we are at about 800. We will go up to 950- 1,000 after the little bit of CapEx that we take in terms of line extension. Sure. So effectively, if I work with 800 per CBM, you guys are already above 50% utilization, at least in the South capacity. So the question is more to do with in terms of the South production, is it now fairly stable in terms of mix, like in terms of high-grade MDF, or is it largely still a low-grade MDF in terms of commodity? That's what the question is. Hi Hrishi, s o Hrishi, basically, in any new plant, you will first start selling the mass products, and then gradually, as you delve deeper into the market, you will start selling the value adds. So currently, the majority of our products are the lower-end D I category, premium plus prelam, etc. It takes some time to ramp up, and we are ramping up. But I think next year, towards H2, you will see us reach somewhere close to the same figures that we have in Hoshiarpur in the Badvel unit. Last quarter, you will also see that we have taken a hit because of some degrade that we have had to. In the initial days, we had a lot of degrade. Now we had to get rid of that chocker block in my plant. So because of our realizations have been low, this quarter, realizations will look fairly better. Okay. So now the purpose from more from the apart from the realization, the idea is that if you start moving to high-grade MDF, then potentially from the incremental utilization standpoint, probably it should peak around somewhere on 80%-85%. That's what the point is, in the sense once the stability and once you have the market in place in terms of. You're absolutely correct. The utilization should peak at 80%-85%. That's what the question is. Yes. Depending on the product mix, see, for us, the ideal scenario is utilization peaks at 75%. That means 100% is premium. But I don't see that happening. But still, you're absolutely right. You can take 85% as peak utilization, considering the quantum of premium products we're looking to add. Okay. Thanks. Thanks. Thank you. Thank you. We'll take the next question from the line of Sneha Talreja from Nuvama Wealth. Please go ahead. Hi. Good afternoon, sir, and thanks a lot for the question. Hi, Sneha. Hi, sir. Just two to three questions from my end, and sorry if at all I'm repeating it. Just wanted to understand the scenario on the plywood segment. We've seen a continuous outperformance coming in from you. Wanted to understand if the industry is growing that strongly, how are we gaining market share, some reasons now sustainable these market shares could be, and your outlook on this particular segment? See, the industry itself, if I really look at plywood as an industry, I think we've said it several times that plywood as an industry will continue to grow at 5%-7% year- on- year. It won't grow in double digits just because there are a lot of other wood panel products like MDF, particle board that are coming in. Growth will continue at this 5%-7%. We have always said that as a company, if I really look at the industry, we used to be a few years back about just basis turnover. We used to be about 4%-5%. Today, we've reached 9%. Somewhere we are gaining market share. That has been through our various strategies that we keep doing. Our goal is ultimately in the next four to five years to reach 15% market share. But having said that, is there a shift towards branded? Is there a thing? There is really no study or data on plywood industry that is there and easily available. So everything is extremely ad hoc and something that is a big perception that we have. So it's very difficult for me to really say that is there a shift in unbranded to branded? What are we doing good? There are so many things that we are doing at the same time. What is really working to give us that result? I think it's the combination of everything that is helping us result in our delivery. So I hope I've been able to answer. Is there anything particular more you would like to know? I would expand on that. No, I think plywood, okay. I'll put it another way. What are the things which are not succeeding in the laminate segment, to put it mildly? I mean, you're outperforming significantly in the plywood front. What are the things you're trying to replicate in laminates that's not working out for you? Hi, Sneha. I think in laminates, we have not been able to execute. We had good strategies. We've been able to devise a number of new interventions, for instance, increasing team size for architect working, for instance, introducing semi laminates. But the execution on ground hasn't been as good as plywood. And I think towards that end only, we have now taken the decision to bring about a change in leadership. I'm sure with the change in leadership and with a course correction that we have already taken, we should be able to execute better on the ground, and that should result in better numbers going forward. Understood. Any change in guidances that you would want to give out or any new guidances for FY 2026 for all the decisions? Not currently. Not currently. Sure. Let me get back. Thanks. Thanks, Keshav. Thank you. Thank you. The next question is from the line of Keshav Lahoti from HDFC Securities. Please go ahead. Hi. Thank you for the opportunity. So firstly, a small clarification. The guidance, sir, the guidance mentioned in PPD is for Q4 or H2? Q4. Q4. Okay. Understood, and secondly, I want to understand. Firstly, congratulations on your stellar MDF performance. So your peers have reported the numbers, so kind of 15% healthy margin on MDF side, while peers are talking about increase in timber cost for this quarter also, while you have mentioned your timber cost for MDF have decreased in this quarter. So what things you are doing different? Please let us know. Yeah. So I had this in here to answer. We've invested significantly behind production efficiencies. So that's done us well this quarter. Also on the product mix side, while in South, we are still ramping up to value-added products. In North, we are focusing a lot on value-added products that also helps us in profitability. So I would say these are the two main reasons that are driving profitability for us. Understood, and your timber costs have reduced sequentially, right, for MDF? Not really. Look, timber cost is something that is not fully in the control of the company in any of these ways. So it is what it is for everyone, right? In North, our timber prices are already 7+. In South, we are at about 6+. So that's moving in line with industry. We haven't seen a reduction in timber costs Q2 and Q3. Okay. Got it. And lastly, how should we read the situation in particleboard industry? While the margins for particleboard industry is so low, recently, a large capacity by Greenlam have got coming in, and now Century also planned to enter this market. And the industry margin is so low, and when we have to supply coming up in this industry, how will the industry scenario looking for next one or two years? You're right. I think every industry goes through these phases of overcapacity and under capacity. Particle board, for sure, we'll see a lot of capacity coming up, like you rightly mentioned. Also, margins are under pressure, primarily on account of increased raw material prices and also sales pressure. But this is a time for the industry to also innovate and step back, right? So new technology will come in, which will give certain efficiencies. People will invest more behind other kinds of products. So I think this is a good time for the industry to sit back and reflect on what more value-added actions can be taken. But these are cycles. They happen. Understood. Got it. So do we expect particle board to break even at EBITDA as well as PAT in FY 2027? Sorry. Yes. That's what you were aiming for. Both the PAT and also break even, right? Sorry. Can you repeat the question? Break even will also happen in FY 2027? Break even. Yes, that is going to be the end. That will be the end. Okay. Okay. Got it. Thank you. Thank you. The next question, sir, is from the line of Praveen Sahay from PL Capital. Please go ahead. Yeah. Thank you for the opportunity and congratulations for a best set of numbers. My first question is related to the MDF. As in the previous participants and sir, you mentioned that improvement in the GM is because of a product mix change. But if I look at your standalone, there is not much improvement in the realization. So sequentially, I'm looking at the numbers. Realization is almost flat, whereas your gross margin profile has improved. So what exactly is there? So if you look at our realization in prelam, quarter- on- quarter, our realization has gone up by 2.2%. And in MDF, you see there is also a product mix change that might have taken place, because of which you're not seeing the realization improvement. Like for like, if we sold the same product, there will be an improvement in realization. This could be due to a mix change within plain MDF. Okay. Okay. Got it. Second question is, as you had also given the guidance for the fourth quarter, around 40%+ of sales, that required, if considering the realization to be same, around 55%+ of a growth in the volume. So do you expect even a lot of capacities are coming in, you're able to maintain that more than 50% volume growth numbers for MDF? I think most of the new capacities have already come in. So considering that we were able to do it as of the previous quarter, I think we should be able to maintain our guided growth. Okay. Okay. And on the plywood side, definitely last three quarters, volume numbers have been very strong. And way forward from here onwards, what exactly the capacity addition is a more driver you are looking at to further increase your market share? And what exactly you are looking at to increase the market share there over here when you are at somewhere around 9% of market share already? So anything on that? I think definitely capacity expansion is to cater to the increase in market share that we would like to do. So the growth will be catered by expansion. But at the same time, I mean, we have to continuously keep deploying various strategies on the ground, whether it be in terms of various programs that we keep doing, whether it be in terms of availability, whether it be in terms of channel expansion, whether it be in terms of really developing our Sainik 710 brand, because that is where the belly of the market lies. Further growing the brand of Century Ply. So I think it is not very easy to say that there is one strategy that we are deploying, and that is what is going to lead to result. I think it's a combination of a lot of activities happening, whether it be in terms of team, in terms of building up the team, in terms of digital infrastructure. So there's so many things that go in. It's just that the intention is towards reaching that. I mean, there are a lot of things that in the last, I think from COVID to now, there were a lot of things that worked in our favor. There are a lot of strategies that failed. But that does not mean that we stopped putting those efforts and ultimately some result into what we have been able to gain in from 5%-9%. So similar things will keep happening. So in this segment, how much in the last nine months? Sorry to interrupt, sir. I would request you to rejoin the queue for follow-up questions. Okay. Thank you, sir. We'll take the next question from the line of Harsha from Key Securities Limited. Please go ahead. Yeah. Thanks for taking my question. Firstly, I congratulate you for your results, and my question is, how you managed to achieve your year-on-year growth despite weak market segment, and how will you see your market in the next six months? Hello? You see, you have seen that the growth has basically come from two sectors, MDF, where we have installed new capacity, and we also, as a company, Keshav, as the leader for MDF, has taken it very strongly, and the full team has been put into pressure into South India, and the growth is coming from South India, so the plant has reached the good capacity also, as we had earlier thought of. As far as plywood is concerned, of course, whatever we have been trying, too many things, new things, some of them have really failed, and we have done away with them. There are some certain things which have really succeeded, and we are now pushing harder on them, but it's a very, very difficult situation in these markets. Right now, yes, we are doing well this year. Next year also, we will probably look for similar kind of growth, and I hope that the markets will also improve by then. The government is also trying to do a lot of things. I hope this kind of growth will continue. Yeah. My next question is, how would you see your market in the next six months? Yeah. That's what actually I believe that the markets are only going to improve because the market has been slow for some time. And now with the win in Delhi and Maharashtra and one of Karnataka state high courtstate none other state BJP won. I think they have also they must have got their confidence back. And I think they will start now spending the money also. A lot in the investment cycle will also start. And I've requested all the businessmen also, industrialists also, to increase their investments in the country. I'm sure things are going to change. They cannot remain as today because the markets are slow. We can see in all the results we are seeing from third quarter. I certainly believe that the H1 of the next year will be much better than what we have today. Okay, sir. Thanks. That's it from my side. Thank you. We'll take the next question from the line of Amit Purohit from Elara. Please go ahead. Yes, sir. Thank you for the opportunity. Yeah. Yeah. Hi, Amit. Hi, sir. Certainly, volume growth outlook for plywood. So we have, I mean, if I look at the historical trend, has been that for FY 2024 was not so great in terms of the revenue growth for us in the plywood. And then FY 2025, we saw a very strong growth, likely in more than teens kind of. Would you say that now the strategies are in place, which will give you confidence of a double-digit outlook in plywood? It's a durable thing that is, I don't know if you've answered this, but just wanted to check your thoughts on this. Yeah. So see, we have given an outlook that in Q4, we will grow at that 12% going forward. And that has been our statement throughout, that we will grow at 12%. But see, we cannot predict any year, and that is why we always give a number that we feel can be done. If you see, this year, I have been saying 12%, but we are outperforming that 12%, right? But we still give a conservative number just because the market is so dynamic. It may not be just strategies alone that play a role. So yes, we may have got strategies right for this year. Whether they will continue to work next year, because there is so much how the market changes, how the scenario changes, what does the competition react to different things. So I think we are right now not talking about growth numbers for next year. Whenever we come with that, we will discuss it more. But I think as a division, we will always give numbers which we feel are doable. If we outperform, great. If we don't, but yeah, currently, we are on the track that we have got something right, and it's going right for us. Whether they continue, we don't know. Okay. No, I just was wondering if this is a base effect thing or this is something more to it? I mean, is there ever a strategy that is baked set and go for all years? I don't think so. It has to be dynamic. We need to keep changing strategies. We need to keep adapting to various market scenarios. So I would say let's see how everything unfolds. Yes, we are definitely on the right path, and we definitely have the right vision in place. Would the loyalty program, that paint and the carpenter loyalty program, that allocation, how it would have moved over the last one or two years, if you could share that? Allocation, you mean in terms of budget? Yeah. The budget probably, say, 2022, 2023, 2024, 2025 till now, what would that, if anything, which will give some sense on? So we actually don't budget it. It is something we generate within our pricing itself. So there is no budget as such. And at the same time, these are too fine details for us to share over this call. Sure. Okay. And second, on the MDF part, I wanted to understand, I mean, your guidance of 15% for Q4, that presumes that the standalone MDF would have at least 18%-19% kind of EBITDA margin, right? Is that fair? This 15% first is on consol right now because 40% YoY growth would also be consolidated for Q4. Yes. Earlier, we had given numbers for profitability on standalone, but for volume on consolidated. This was because we weren't very sure of how that would scale up. So 15% was for standalone, and we are sure that 15% can be achieved for standalone. If you're looking at consolidated, I would say that the blended EBITDA numbers would be closer to what they were in this quarter. Sure. Okay. Okay. And there is one. I mean, I was just doing a math. I don't know if you would be able to help me out in this MDF, which is basically the consolidated minus the standalone performance. And I see significant savings on the overhead cost, especially on the new plant. Anything one-off thing, or should we take that as structural? I think it's operating leverage and the benefit of economies of scale. So there has been nothing significant that is one-off in the current quarter. Sure. I'll take this offline. Thanks. Thank you so much. Thank you. Thank you. The next question is from the line of Utkarsh Nopany from BOB Capital Markets Limited. Please go ahead. Yeah. Hi. Good afternoon, sir. Yeah. Hi, Utkarsh. Yeah. So my first question is, again, on MDF segment margin. So I just wanted a clarification from you. If we see the industry leader margin has contracted sharply on quarter-on-quarter basis in December quarter, whereas if we see for our MDF segment margin, the EBITDA margin without the impact of forex, there has been a 700 basis points improvement on a quarter-on-quarter basis, despite our realization going down by 2%. So can you please explain why our margin has improved on a quarter-on-quarter basis, which is an aberration compared to the industry trend? Hi. I think it is better efficiency as far as our new plant is concerned. Last quarter, if you look at it on a standalone basis, while we weren't very far off from where we are in the current quarter, but on a consolidated basis, we were very, very far apart. So the new plant, of course, there have been operational efficiencies that we have brought in. Alongside that, I think that in terms of timber, we have benefited slightly from having higher inventory, which has reduced the cost. But overall, I think this is predominantly due to operating leverage and due to operating efficiencies that we are able to generate. Sir, on a quarter-on-quarter basis, your revenue has remained roughly same. So the operating leverage benefit would not have kicked in. And if you could quantify what would have been the reduction in the timber cost for us on a quarter-on-quarter basis? And what would? When we are discussing operating leverage, I meant year-on-year. So the overhead cost definitely gets split up. Quarter-on-quarter, like I said, in any plant, when you're in your first or your second quarter, there will be wastages. There will be higher consumptions. You need to ensure quality is met. So all of those things have definitely led to us being able to give a higher EBITDA number in Q3 compared to Q2 as far as the Badvel plant is concerned. Sir, going forward, can we maintain similar kind of a margin driven, say, from the March quarter onward, what we have delivered in December quarter at least for MDF segment? Yes. Our attempt will be to maintain similar margins. Sir, second question is, can you please quantify what kind of a pricing action we have taken for each of our segments in December quarter and whether we are planning to take in March quarter as well for MDF plywood and for laminate? For MDF, we have taken close to a 3%-4% blended increase pan-India as far as prices are concerned. For laminate and for plywood, I don't think we have taken any increases as far as last quarter is concerned. Okay. Thanks a lot, sir. Thank you. The next question is from the line of Shivkumar Prajapati from Ambit Investment Advisors Pvt Ltd. Please go ahead. Hi. Yeah. Hi, sir. Thanks for having my question. Our first question is, I guess from today onwards, BIS on some wood panel products was about to be effective. So is it effective from today? Any update if you could share? Hello? Yes, yes, please. Hello. Yeah. I think BIS is getting effective in different products at different times. For example, plywood, it is 28th February is the date. I think in MDF, it is 11th or 12th February is the date. And I think it is very, I think you have to give us a day or so to know whether it's really got effective or not. But this time, it seems that the government is extremely serious about this being put into motion. In terms of import, it will be done on these dates. In terms of domestic, I think they're doing it in a staggered manner over big, small, and micro up to August. Okay. My second question is the follow-up on the previous questions. If I'm not wrong, you mentioned that you have taken price hike of around 3%-4% on MDF during the previous quarter. Is my understanding correct? Can you repeat the question, please? Like you mentioned that we have taken price hike on MDF the previous quarter, around 3%-4%. Yes. Absolutely correct. Okay, sir. Okay. That's it from my side. Thank you. Best of luck. Thank you. We'll take the next question from the line of Rishab Bothra from Anand Rathi Share and Stock Brokers, Institutional Equities. Please go ahead. Yes, sir. Good afternoon, sir. Yeah. So I wanted to understand on the demand perspective for each of the segments, what are the key drivers you see will be meaningful next two to three quarters, which will drive demand with plywood, laminates, MDF, and particle board? I think I have already spoken on this because I believe that undercurrents have been slow and government was not at a very confident footing because of the results of the annual of the five-year central elections and then local elections, but after these three big wins, and now the government has also adjusted, and the kind of budget they have given, so I think all of these will actually now, in few months, I think there should be a recovery, and it's a question of mindset. If people feel positive, things will become positive, so that's why I believe that H1 should be much better than the last three, four months, five months, whatever has gone. I agree with this on a broader level. But in case of plywood, let's say dealers or demand will be available from housing space, laminates, could it be export or domestic? And in MDF and particle board, will it be OEMs or dealer distributor level? So I wanted some color on that one. Hello? Yeah, yeah. Hello? Yeah, yeah, so as far as plywood is concerned, it all depends on the high upper middle class or the upper class, the [crosstalk] HNIs housing, actually, so I believe that a lot of sales has happened and a lot of new residences and offices are getting now interiorly decorated, so I believe that some demand has started coming in, and we are benefiting out of that only. Otherwise, this kind of a growth would not have been possible, and I think this should now continue for some time, and more and more sales are happening. We are seeing the kind of registration fees being collected in Maharashtra or in Gurugram. They are certainly a very positive sign. Yes, of course, even after buying, a person takes probably a year to settle down his mind, who is the interior designer, what kind of design he wants to do, and all that might be happening. But I am sure that this is what will really propel the further growth as far as plywood is concerned. As far as MDF and laminate is concerned, I would like Keshav to react. I think for laminate, both the domestic as well as the export markets are going to lead to a substantial increase in demand. Exports have been doing well for some time now, and India is going steadily in export of laminate for quite a few years. I think with the new larger-sized presses, we should be able to take advantage of this trend as well. And of course, the domestic market will continue to grow. As far as MDF and particle board are concerned, I am fairly confident that we will see an increase in domestic demand. There is growing traction. And both OEM and home consumers or the retail segment, they are likely to grow in line with the government's initiatives towards housing for all and other such initiatives related to real estate. We should see two large plants of MDF came into production. One is Century Ply, another XM had come into production, a nd both are mostly doing well. I think both have crossed 50% capacity utilization because MDF is the one which is really growing much faster than plywood. A lot of furniture is getting converted into uses of MDF. So I expect that within next about a year's time, whatever capacity has been created should be absorbed. So I don't see much headwinds or any kind of a problem in coming time as far as these things are concerned. Got it. And lastly, on input cost, what would be the delta in case of wood price increase, let's say by 5%? Which segment will be affected the most? I guess laminates don't have timber consumption as such, large timber consumption as compared to plywood. No timber consumption as far as laminate is concerned. Laminate is made out of craft paper and all that. Correct. So only the plywood, MDF, and particle board will be impacted. And if you could spell out what percentage plus or minus is there in case of increase or decrease in timber cost by 5%? Keshav, will you react? So for MDF, the price quarter on quarter increased by about 5%-7% in North, and in South, it's slightly higher. It's about 10%-12%. This is for MDF-related timber and related to MDF. For plywood, I think there hasn't been any material spike in raw material prices in the last quarter. But if it has been something, it has been minuscule. I think for plywood, what has happened, we are getting good imports of core veneer and face veneer both from different countries. So there is not one country, but many countries which are now exporting to India, and the demand is being met. And that is why the local price rise also had been curtailed, that it is not increasing. Otherwise, it would have gone to the roof. So for the last about six months' time, I don't see any increase as far as plywood raw material prices in India is concerned because of the import prices. And I don't see until there's something very big, something which we do not see right now happens. After Trump, anything can happen, of course. But I don't see much happening really there. So lastly. Yes, plywood is capable of taking that price rise also. We have taken about 4% price rise this year, present year also. So next year, again, if it happens, we will be able to take a price rise. Got it. Lastly, if I may chip in, any update on the container fleet business? What kind of capital can we get released, and how soon can it happen? Mr. Bothra, could you please repeat your question? Mr. Agarwal had got disconnected from the call. Yeah, please. Please, Bothra. Yeah, so I wanted to understand what kind of capital can be released on the container fleet business? Any update on that front? How soon that can happen? Container freight station, very frankly, is doing much better this year, that much I know. But right now, I am unable to really answer any question on that division. If CFO can throw better light, I know this division is doing much better than last year. That much I know. No, container freight station, this business is doing good now because volume of import on Calcutta port is now increasing. But as such, we don't have any plan of expanding capacity in this business. Of course, we are now entering into port operations also. For that, we have formed a separate company, Century Ports. So we are now working on that business also. We are also working on whether we can have some relevant partner who can help us in this business. So a lot of things are on the board, in fact. So we shall update you at the right time. Okay. So no plans to have as of now, and port operations will be in a different entity? Hiring plan is not there. We don't have any hiring plan at the moment. Thank you, sir. Thank you. We'll take the next question from the line of Bhavin Rupani from Investec. Please go ahead. Thank you so much for the follow-up, sir. Hi, sir. Sir, do we have any export obligation from our new MDF plant and particle board plant in South India? Keshav? Yes. We do have an export obligation from the MDF unit. And currently, we are not in line to meet the same because the raw material prices have shot up drastically. But we are working on all available options. And we are sure that within the 6-year time horizon, we'll be able to meet our export obligations. What is the timelines within which we have to export it? 6 years. 6 years, sir? Yes. Okay. And quantum, if that is possible? I think CFO will get back to you with exact details if I don't have the data ready on me. Got it. And sir, last question is related to plywood. Just wanted some sense which category is growing faster. Is it the Sainik one or the premium category is growing faster? And if you can give the breakup, if that is possible. So see, we never give this breakup. But just to give you a perspective of everything, if you have to deliver an 18%-20% growth, it cannot be behind just one segment. Both segments have to grow at a very double-digit growth number for you to deliver that level. Having said that, I've repeated this in every call, that the belly of the market lies at the Sainik segment. So the growth expectation is that the growth level of Sainik has to be higher than that of Super Prime. But that does not mean that Century is not growing at a very high pace. So I hope that answers your question. All right. Thank you so much. Thank you. A reminder to all the participants that you may please press star and one to ask questions at this time. Ladies and gentlemen, 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. Agarwal for closing comments. Over to you, sir. Thank you. Thanks to all of you for supporting Century Ply. With very positive hopes for the Q4 and the H1, and I believe that things will be much better. Undercurrents will certainly improve in coming times. We close today's call. Thank you. Thank you, members of the management. On behalf of SKP Securities Limited, that concludes this conference. We thank you for joining us. Ladies and gentlemen, and you may now disconnect your lines. Thank you.