Rushil Decor Limited has informed the Exchange about Investor Presentation
•••••• ••• RUSHIL
DECOR LIMITED
WE'LL MAKE IT
RDL/037 /2022-23 Date: 08.08.2022
To, National Stock Exchange of India Ltd. Exchange Plaza, Sandra - Kurla Complex, Sandra (E), Mumbai - 400 051 NSE EQUITY SYMBOL: RUSHIL
To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 BSE SCRIPT CODE: 533470
Dear Sir/Madam,
ISIN: INE573K01017
Sub: Investor Presentation for the Quarter ended June 30, 2022
Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith a copy of Investor Presentation on Unaudited Financial Results and other highlights of the Company for the Quarter ended June 30, 2022.
The same will also be available on the website of the Company at www.rushil.com.
This is for your information and record.
Thanking you
Yours Faithfully,
, Rushil De{;;) Limited
'10 � �. t----_
mukh K. Modi Company Se-cretary
Encl: as above
••
RUSHIL DECOR LTD .. RUSHIL HOUSE, NEAR NEELKAN T H GREEN BUNGALOW, OFF SINDHU BHAVAN ROAD, SHILAJ, AHMEDABAD-380058, GUJARAT, INDIA.
REGD. OFFICE: S. NO. 125, NEAR KALYANPURA PAT IA, VILLAGE I T LA, GANDHINAGAR-MANSA ROAD,
TA. KALOL, DIST. GANDHINAGAR-382845, GUJARAT, INDIA.
I CIN: L25209GJ1993PLC019532
PH: +91-79-61400400
I FAX: +91-79-61400401
I EMAIL: INFO@f1USHIL.COM
I WWW.RUSHIL.COM
Investor Presentation Q1 FY23
Disclaimer
This presentation has been prepared by Rushil Décor Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world- wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.
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Table of Contents
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Management Comment
Commenting on the results Mr. Krupesh Thakkar, Chairman said – “We are happy to announce that the Company has produced excellent set of numbers for Q1 FY23 on the back of enormous efforts put in by the team. We have been striving to increase the capacity utilisation at AP plant and at the same time have been focused on reducing the costs and increasing efficiencies. Both have been crossing set milestones gradually and this quarter is reflective of the same. Our other focus has been to gradually increase our exports and enhance the value-added contribution. I am delighted to state that our strategies have been fructifying. Now we plan to move into next leg of growth for which we have announced fund raising. I would like to thank the entire team of Rushil, as well as all our stakeholders, whose faith and efforts enable us to stay focused and generate better results.”
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Company Snapshot
A Snapshot of our Company
1
5
One of the leading player in manufacturing Decorative Laminate Sheets and Medium Density Fibre Boards (MDF) in India
4 generations in Business of Designing 120 VIR Studios across India
2
Strong Business Segments
One of the Largest player in Laminates segment – present with 2 brands with 1200+ designs/SKUs India’s 3rd largest manufacturer of MDF boards – present with 4 brands
3
Dynamic & Experienced Leadership
Strong management team with 30 years of rich experience in Industry Dedicated and skilled employee base of over 700+
4
State-of-the-art Manufacturing Facilities Laminates – 3 units at Gandhinagar, Gujarat MDF – 1 unit at Karnataka and 1 unit at Andhra Pradesh
Strong Branch & Dealer Network
Branch & Consignment Agents – 12; Direct Distributors - 540+; Retailers/Dealers – 4000+ Exporting Countries - 47
6
Segment Highlights - Laminates
Unit
Location
Capacity
Utilization
Brands
3 Units
Gujarat
34.92 lakh sheets per annum
Average FY22 – 80% Q1FY23 – 83%
Network
80+ Distributors
7 Consignment stockists
1 Depots
8 Branches
1,600 Dealers
7
Segment Highlights - MDF
Unit
Unit 1
Unit 2
Location
Capacity
Utilization
Chikmagalur, Karnataka
Visakhapatnam, Andhra Pradesh
90,000 CBM per annum
Average FY22 – 76% Q1FY23 – 85%
2,40,000 CBM per annum
Average FY22 – 56% Q1FY23 – 73%
Value Addition
Total Value Addition – 29%
Brands
Network
400+ Distributors
2 Consignment stockists
4,000+ Dealers
8 Branches (including
5 Flooring)
70+ OEMs
8
Q1 FY23 Financial Highlights
Performance Highlights
Q1 FY23 Performance
Strong volume growth on back of higher capacity utilisation & incremental exports
Improvement in Domestic and Export Realisations
Significantly higher value addition vis-à-vis same quarter last year – 29% in Q1 FY23
Higher economies of scale for AP plant (73%) and improvement in cost efficiencies
Board approved fund raising of upto Rs. 200 crores
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Quarterly Segmental Highlights - Laminates
Volume Sales (lakh sheets )
636270
Realisation (Rs. per sheet)
745
600123
679
Q1FY22
Q1FY23
Q1FY22
Q1FY23
Total Sales (Rs. Cr)*
47.43
EBITDA# (Rs. Crs) / Margin (%)
40.74
7.03%
2.94
6.52%
3.11
*Does not include inter segment revenue
Q1FY22
Q1FY23
Q1FY22
Q1FY23
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Quarterly Highlights – Laminates Geographical Break-up
Volume (lakh sheets)
369603
230520
358090
278180
Value (Rs. Cr)
26.93
30.60
13.81
16.83
Q1FY22
Exports
Domestic
Q1FY23
Q1FY22
Exports
Domestic
Q1FY23
Domestic Realisation (Rs. per sheet)
605
Exports Realisation (Rs. per sheet)
855
599
729
Q1FY22
Q1FY23
Q1FY22
Q1FY23
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Quarterly Segmental Highlights - MDF
Volume Sales (cbm)
58745
Realisation (Rs. per cbm)
27362
20145
24529
Q1FY22
Q1FY23
Q1FY22
Q1FY23
Total Sales (Rs. Cr)*
160.74
49.42
*Does not include inter segment revenue
Q1FY22
Q1FY23
EBITDA# (Rs. Cr) / Margin (%)
27.45%
44.15
Q1FY23
13
-1.58%
-0.78
Q1FY22
Quarterly Highlights – MDF Geographical Break-up
Volume (cbm)
47428
Value (Rs. Cr)
134.23
19770
375
Q1FY22
11317
48.73
0.69
26.51
Exports
Domestic
Q1FY23
Q1FY22
Exports
Domestic
Q1FY23
Domestic Realisation (Rs. per cbm)
28301
Exports Realization (Rs. per cbm)
23425
18279
24651
Q1FY22
Q1FY23
Q1FY22
Q1FY23
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Quarterly Highlights
Rs. Crore
Total Income
EBITDA
Q1 FY23
Q1 FY22
Y-o-Y (%)
210.78
90.99
131.65%
47.52
1.51
3056.32%
EBIDTA Margin (%)
22.55%
1.65%
2090 bps
Depreciation
Interest
Profit Before Tax
Profit After Tax
PAT Margin %
Basic EPS (in Rs.)
6.12
4.87
36.71
27.20
5.90
5.88
(10.09)
463.89%
(7.58)
458.71%
12.91%
(8.33%)
2124 bps
13.66
(3.81)
458.53%
Higher export volumes realisations and recorded in this quarter
Revenue growth driven by higher sales volume and better realisations due to higher exports and incremental contribution from value addition
EBITDA improvement on account of above factors, improving cost efficiencies and higher capacity utilization at AP plant
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Annual Highlights – Laminates
Volume Sales (lakh sheets)
2869155
2778474
Realisation (Rs. per sheet)
691
2682847
586
601
2020
2021
2022
2020
2021
2022
EBITDA# (Rs. Crs) / Margin (%)
Export Volume (lakh sheets)
10.72%
9.96%
16.27
18.82
6.46%
12.27
1687370
1611888
Export Realisation (Rs. per sheet)
788
698
657
1432583
2020
2021
2022
2020
2021
2022
2020
2021
2022
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Annual Highlights – MDF
Volume Sales (cbm)
176545
83952
77520
Realisation (Rs. per cbm)
24,416
19733
20041
2020
2021
2022
2020
2021
2022
EBITDA# (Rs. Crs) / Margin (%)
Export Volume (cbm)
Export Realisation (Rs. per cbm)
14.82%
64.39
13.56%
22.66
11.62%
18.11
2020
2021
2022
14114
22239
22103
21977
367
2020
232
2021
2022
2020
2021
2022
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Annual Financial Highlights
Rs. Crore
Total Income
EBITDA
FY22
624.17
73.94
FY21
335.44
34.97
Y-o-Y (%)
86.07%
111.43%
EBIDTA Margin (%)
11.85%
10.43%
142 bps
Depreciation
Interest
Profit Before Tax
Profit After Tax
PAT %
Basic EPS (in Rs.)
24.37
20.31
30.68
22.80
3.65%
11.45
9.73
12.42
18.66
13.72
4.09%
8.11
66.23%
(44 bps)
41.18%
Commencement of production at new plant in Andhra Pradesh, in March’21, led to significant volume growth in MDF segment in FY22
of
Revenue growth driven by a combination higher volumes from MDF segment and better realisations across segments
Higher EBITDA Margin factor of better and higher operational efficiency
realisations
PAT margin impacted due to higher depreciation
recommended
Board dividend of Rs. 0.50 per share
final
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Company Overview
Milestones
Amalgamation Of MRPL & RHPL Manufacturing Units Into Rushil Decor Private Limited Converted from private to public company ISO certification awarded
2007
2009
Listing with BSE & NSE through Initial Public Offering
2011
Started manufacturing of pre-laminated MDF Board at Chikmangalur
2013
2014
2016
Incorporation
1993
2003
Started Product Distribution In 34 Countries
Commenced commercial distribution of MDFs
Purchased New Land Site At Chikmagalur, Karnataka For Establishing New Project For MDFs
MDF plant attained over 90% capacity utilization whereas Laminate plants continued to operate at near optimum capacity utilization level
Signed MOU with Andhra Pradesh Government to establish project of Thin & Thick MDF Board
2017
Achieved 73% utilization in AP plant in June’22
2022
2021
Started regular production at new plant in Andhra Pradesh in March 2021
30 years of Growth & Experience
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Strong & Experienced Management Team
Shri Krupeshbhai G. Thakkar – Chairman
Experience in industry of laminated sheets and allied items Conferred with several accolades which include “Rajiv Gandhi Shiromani Award” and “Indira Gandhi Sadbhavana Award” in 2007 for his achievement in his field of work and contribution to the Nation Promoter of Company and appointed as Chairman w.e.f. 13th August 2021
Shri Rushil Krupeshbhai Thakkar – Director
Associated with Company since last 8 years Completed Bachelor of Commerce from Gujarat University Online certificate course in MBA Essential from “The London School of Economics and Political Science” Appointed as Director w.e.f. 13th August 2021
Shri Hiren Padhya – Chief Financial Officer
Over 28 years of experience including 21 years in leadership role Successfully handled many IPO, Acquisition and Merger/Demerger, Overall Post IPO Compliances including Taxation, Banking Finance, Budget, Accounts, Auditing and setting up SEZ operations
Shri Keyur M. Gajjar – Chief Executive Officer
Associated with Company since last 16 years Holds degree of Bachelor of Engineering and Masters In Business Administration
Shri Hasmukh K. Modi – Company Secretary
Associated with Company since last 14 years Completed Bachelor of Commerce, hold degree of Company Secretary from ICSI in year 2003 Completed ICMAI in 2011
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Industry Overview
Huge opportunity in Laminates & MDF
Percentage share of organized / unorganized furniture industry
Organized, 30%
Unorganized, 70%
Contract, 15%
Office, 20%
Household, 65%
Laminates Industry Snapshot
Consumption of Indian panel products has grown at CAGR of 15-20% for organised segment Increasing consumerism and urbanization are key growth drivers
Industry size – INR 6,000+ crore 40% organized sector 60% unorganized sector
MDF Industry Snapshot
~33% of India’s requirement met through imports from China, Malaysia, Thailand and Sri Lanka Significant advantages over plywood spurring popularity
Industry size – INR 5,500+ crore CAGR of 15% - 20% presently
Source: • https://economictimes.indiatimes.com/articleshow/52285252.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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Furniture of the Future: Made with MDF
MDF v/s Plywood Consumption
Plywood
MDF
30%
70%
65%
35%
GLOBAL
INDIA
China’s MDF consumption 50 million CBM
Source: grandviewresearch.com
Global Size of MDF market*
Regional Demand for MDF in India
In $ Bn
61.3
102
Others, 10%
West, 15%
South, 45%
2019
2027
North, 30%
Huge penetration opportunity India’s MDF consumption 2.8 million CBM
Plywood replacement opportunity – MDF Total Indian Plywood market: INR 180 billion
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Way Forward
Way Ahead
Aggressive Marketing through Dealer Network expansion & Promotional Activities
Opening new marketing offices, appointment of new distributors Smaller towns are emerging realty hubs - intend to capitalize on these opportunities
Reaching Optimum Capacity Utilisation and Achieving Higher Efficiencies
Set up resin plant for higher cost control and target lower transportation cost Value Added products – target to achieve 40% in one year from 25% in FY22
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Thank You
For further information, please contact:
Mr. Hiren Padhya Chief Financial Officer Rushil Decor Ltd Email: hiren.padhya@rushil.com Website: www.rushil.com
Mr Amit Sharma / Ms Disha Shah Bridge Investor Relations Pvt. Ltd. Tel: +91 9867726686 / +91 9699060134 Email: amit@bridge-ir.com, disha@bridge-ir.com Website : www.bridge-ir.com
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