Rushil Decor Limited has informed the Exchange about Investor Presentation
RDL/104/2022-23 Date: 13.02.2023
To, National Stock Exchange of India Ltd. Exchange Plaza, Bandra – Kurla Complex, Bandra (E), Mumbai – 400 051 NSE EQUITY SYMBOL: RUSHIL
To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 SCRIPT CODE: 533470
Dear Sir/Madam,
ISIN: INE573K01017
Sub: Investor Presentation for the Quarter ended December 31, 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 Third Quarter and Nine Months ended December 31, 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,
For, Rushil Decor Limited
_______________ Hasmukh K. Modi Company Secretary
Encl: as above
Investor Presentation Q3 & 9M - 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.
Table of content
1.
2.
3.
4.
5.
Q3 & 9M FY23 Financial Highlights
Company Overview
Industry Overview
Historical Financial Highlights
Way Ahead
Q3 & 9M FY23 Financial Highlights
Laminates
MDF
Management Comment
“I am happy to share that during the third quarter we have registered revenue growth of 26% from Rs. 166.8 to Rs. 210.3 crore. This has been driven by both our business segments – MDF as well as laminates. During the quarter, we saw strong demand for our laminates business in the global markets which led to an increase of 41% in export volumes. We expect this trend to continue in the coming quarters as well. Strong global demand for products manufactured by our company will also support our upcoming jumbo laminates manufacturing capacity and help us achieve our target of achieving sustainable growth and higher EBITDA margins.
On the MDF front, our volumes grew by 22% and value by 27% compared to last year. We have displayed steady performance in our domestic MDF business, which grew by 6% in volume terms and 17% by value. From the domestic industry perspective, realizations for basic products have been subdued with increased supply from imports and marginal rise in prices of wood, a key raw material for MDF. We have been able to maintain our performance despite these headwinds by focusing on value-added products, a process we will remain focused on in the future as well. During the quarter, our value added product in MDF contributed 39% of total Revenues from MDF.
I am delighted to state that during the quarter, we have continued to systematically expand our geographical presence across the country. We also added new SKU’s under our value added products, which are gaining strong acceptance in the market as we get numerous inquiries for the same. We are confident that with growing demand for our MDF, transition to strong brands, customers preferring quality products, the industry will see continued growth and Rushil Décor is well-positioned to gain from these trends.”
Commenting on the this, Mr. Krupesh G Thakkar, Chairman & Managing Director, said,
Q3 FY23 Financial Highlights
Revenues (Rs. Crore)
Gross Profit (Rs. Crore)
EBITDA* (Rs. Crore) / Margin* (%)
PAT (Rs. Crore) / Margin %
11.4%
18.1 %
4.4 %
4.9%
210.3
102.6
38.1
10.2
166.8
80.3
7.3
19.0
Q3 FY22
Q3 FY23
Q3 FY22
Q3 FY23
Q3 FY22
Q3 FY23
Q3 FY22
Q3 FY23
Gross Profit – Revenue from operations – Total raw material cost; *Adjusted for Forex Loss/Gain
9M FY23 Financial Highlights
Revenues (Rs. Crore)
Gross Profit (Rs. Crore)
EBITDA* (Rs. Crore) / Margin* (%)
PAT (Rs. Crore) / Margin %
624.5
329.7
429.1
209.9
9.9%
21.4%
1.7%
10.3%
133.7
64.1
9M FY22
9M FY23
9M FY22
9M FY23
9M FY22
9M FY23
Q3 FY22
Q3 FY23
42.4
7.4
Gross Profit – Revenue from operations – Total raw material cost; *Adjusted for Forex Loss/Gain
Quarterly Highlights – Laminates
Revenues (Rs. Crore)
Sales Volumes (Sheets)
Realization (Rs. per sheet)
EBITDA (Rs. Crore) / Margin %
47.3
56.0
690,044
777,834
685
720
3.3%
10.2% 5.7
.
5 9 1
.
5 6 3
.
9 0 2
.
4 6 2
,
5 0 4 6 0 3
,
,
2 2 1 6 5 3
,
,
2 2 9 3 3 3
,
,
9 2 4 1 7 4
,
789
774
588
637
1.6
Q3 FY22
Q3 FY23
Export
Domestic
Q3 FY22
Q3 FY23
Export
Domestic
Q3 FY22
Q3 FY23
Export
Domestic
Q3 FY22
Q3 FY23
• Volumes in the export market increased by 41%, highlighting strong global demand for products manufactured by the Company Improving realizations in the domestic market further supported a significant increase in EBITDA margin in the laminates segment •
Quarterly Highlights – MDF
Revenues (Rs. Crore)
Sales Volumes (CBM)
Realization (Rs. per CBM)
EBITDA* (Rs. Crore) / Margin* (%)
120.6
152.8
47081
57310
25,622
26,662
18.6% XX%
21.4% XX%
32.7
.
4 2 1 1
2 8
.
.
1 1 3 1
.
7 1 2
Q3 FY22
Q3 FY23
Export
Domestic
3 5 2 3 4
,
8 2 8 3
,
Q3 FY22
6 2 8 5 4
,
,
4 8 4 1 1 Q3 FY23
Export
Domestic
22.4
7 9 9 5 2
0 8 3 1 2
8 1 6 8 2
7 5 8 8 1
Q3 FY22
Q3 FY23
Export
Domestic
Q3 FY22
Q3 FY23
• Volumes in export and domestic markets increased by 200% & 6% respectively
*Adjusted for Forex Loss/Gain
Quarterly & Nine Months Financial Highlights
Particulars (Rs. Crore)
Q3 FY23
Q3 FY22
Y-o-Y (%)
9M FY23
9M FY22
Y-o-Y (%)
Revenue Cost of Services & Raw Materials (Increase) / Decrease In Stocks Purchase of Finished Goods Employee Cost Other Expenses EBITDA EBITDA Margin Other Income Depreciation Finance Cost Exceptional Items PBT Tax PAT PAT Margin
210.3 105.4 2.3 0.0 11.9 64.2 26.5 12.6%
0.4 7.1 6.5 0.0 13.4
3.2 10.2 4.9%
166.8 88.1 -2.2 0.6 10.4 51.0 19.0 11.4% 2.7 6.1 5.7 0.0 9.8 2.5 7.3 4.4%
26.1%
39.9%
37.2%
40.5%
624.5 313.8 -19.1 0.0 34.6 174.0 121.2 19.4%
1.1 19.7 17.0 0.0 85.6
21.5 64.1 10.3%
429.1 249.3 -31.5 1.3 30.3 137.3 42.4 9.9%
3.1 18.0 17.4 0.0 10.0
2.6 7.4 1.7%
45.5%
186.0%
755.1%
768.5%
• Growth in revenues was driven by higher contribution from the MDF and Laminates segment • Q3 FY23 & 9M FY23 Forex loss to the tune of Rs. 11.6 crore and Rs. 12.6 crore respectively included in other expenses,
led to lower EBITDA than expected
Company overview
Laminates
MDF
Among India’s Leading Laminates & MDF Manufacturers
3.49 mn Sheets Installed capacity for Laminates
5 State-of-the-art manufacturing facilities across India
25+ Years in Decorative Laminates & MDF
3,30,000 CBM Installed capacity for MDF
Strong network of 540+ direct distributors & 4,080+ retailers/dealers
Among the largest players in the Laminates segment – with 2 brands and 1,200+ designs/SKUs India’s 3rd largest manufacturer of MDF boards – with 4 distinct brands
Decorative Laminates
Medium Density Fiberboard (MDF)
Offering Specialized Products
Units
3
Capacity
3.49 million p.a.
Utilization 9M FY23 – 83%
Location Gujarat
• Home furniture • Cabinet Doors • Desktops • Wardrobes • Wall Paneling • Commercial furniture
Brands
Manufacturing
Applications
Units
2
Capacity 3,30,000 CBM p.a.
Utilization 9M FY23 – 73%
Location Chikmagalur, Karnataka Visakhapatnam, Andhra Pradesh
• Residential & Commercial
furniture
• Wall Paneling • Architectural Moldings • Industrial Products • Sports Goods • Display Cabinets • CNC Routing • Flooring • Doors & Partition Cornices
Through State-of-the-art Manufacturing Facilities – Laminates
Laminates – Gujarat
• Unit 1 – RDL, 608, GIDC Mansa, Dist. Gandhi Nagar, Gujarat
• Unit 2 – MRPL, Dholakuva Patia, Gandhinagar-Mansa Road, Mansa, Dist. Gandhinagar
• Unit 3 – RHPL, Survey No. 125, Nr. Kalyanpura Patia, Gandhinagar-Mansa Road, Village Itla, Tal. Kalol
•
Production – 34.92 lakh sheets per annum
Technically Advanced MDF Manufacturing Plants
Technological Superiority of MDF
Moisture Resistant
Termite Resistant
Borer Resistant
Stable & Uniform
Highly Durable
Chikmagalur, Karnataka
Visakhapatnam, Andhra Pradesh
•
•
Installed Capacity – 90,000 CBM per annum
Utilization (nine months) – 83%
•
•
Installed Capacity – 2,40,000 CBM per annum.
Utilization (nine months) – 70%
Led by Strong and Experienced Management Team
Mr. Krupeshbhai G. Thakkar - Chairman • Bachelor‘s degree in commerce from Gujarat University
• 30+ years of experience in laminates and other allied products
• Manages and leads
operations
Mr. Rushill Thakkar Director • Graduate with over
9 years of experience
• Played significant role in setting up new MDF facility in Andhra Pradesh • Responsible for
logistics & warehousing, exports
Mr. Keyur M. Gajjar Chief Executive Officer • Bachelor's degree in engineering and MBA
• Over 2 decade of
experience • Responsible for planning and overall functioning of organization
Mr. Hiren Padhya Chief Financial Officer
• Qualified Chartered Accountant, Company Secretary and Cost Accountant • 29 years of
experience in financial management
Mr. Hasmukh K. Modi Company Secretary
• Associated with Company for the last 14 years
• Commerce
graduate and Company Secretary qualifications
• Completed ICMAI in
2011
Key Strengths
Product Innovation & Value Engineering
Strategically Located Manufacturing Plants
• Continuous emphasis on product innovation
and new design development
• Design first, quality first - brand approach
• Manufacturing facilities located in close
proximity to raw material source, ensuring steady supply at reasonable rates
Strong Branch and Dealer Network
Significant Export Presence
• Developed a strong domestic network of 540+ distributors and 4,080+dealers/ retailers across India
• Exporting to 51+ countries, established strong
brand in export markets
• Exports help de-risk business on geographical
& customer segments
Industry Overview
Laminates
MDF
Indian Wood Panel Industry Overview
Indian Furniture Industry ($bn)
9% CAGR
30
25
20
15
10
5
0
2019
2020
2025
2030
2035
Indian Wood panel Industry Break - up
9%
8%
15%
Plywood
Laminates
MDF
Particle Board
68%
Industry Data, Indurty Reports, Axis Capital,Hiatong Securities
•
Indian furniture industry expected to accelerate to 9% CAGR from $7.6 bn in 2020 to $11.7 bn in 2025
• Growth in furniture industry,
improving standard of low installation and maintenance cost are key
living, driving forces for the laminates industry
•
Indian laminates industry set to post CAGR of 10% over FY21-26 with higher share of organized player
• Demand for decorative laminates is rising from hotels, educational hospitals, institutions, and other commercial infrastructures due to the wide availability of designs, colors, textures, etc.
shopping malls,
airports,
• Additionally, products sports clubs, auditoriums, etc., growth
rapid utilization of decorative interior indoor fuels market
in gymnasiums, convention centers,
further
Rising Opportunities in the MDF segment
Global market size is estimated at 105 million CBM (USD 50.2 billion) in 2021, expected to witness a CAGR of 9.6% in 2021-2026
MDF Market in India (Rs. Crores)
MDF
Plyboard
Global vs Domestic MDF penetration
3000
2021
6000
2026
30
70
ROW
70
30
India
50
50
India 2030E
Growth Drivers
Growth in the Real Estate Sector
Modernization of Furniture Industry
Growth of Online Home Décor Platforms
Rapid Pace of Urbanisation
Changing demographics of Young Population
Reduction in Furniture Cycle Time
https://niveshaay.files.wordpress.com/2022/01/mdf-industry-analysis-1.pdf
Historical Financial Highlights
Laminates
MDF
Annual Highlights – Laminates
Sales Volumes (Sheets)
Realization (Rs. per sheet)
28,69,155
27,78,474
26,82,847
586
601
691
FY20
FY21
FY22
FY20
FY21
FY22
EBITDA (Rs. Crore)/ Margins (%)
Export Realization (Rs. per sheet)
9.9%
16.3
10.7%
18.8
6.5%
12.3
788
698
657
FY20
FY21
FY22
FY20
FY21
FY22
Annual Highlights – MDF
Sales Volumes (CBM)
Realization (Rs. per CBM)
1,76,545
83,592
77,520
24,416
19,733
10,041
FY20
FY21
FY22
FY20
FY21
FY22
EBITDA (Rs. Crore)/ Margins (%)
Export Volumes (CBM)
Export Realization (Rs. per CBM)
13.6%
11.6%
22.7
FY20
18.1
FY21
14.8%
64.4
FY22
14,114
22,239
22,103
21,977
367
FY20
232
FY21
FY22
FY20
FY21
FY22
Particulars (Rs. Crore)
Revenue
Cost of Services & Raw Materials
(Increase) / Decrease In Stocks
Purchase of Finished Goods
Employee Cost
Other Expenses
EBITDA
EBITDA M
Other Income
Depreciation
Finance Cost
Exceptional Items
PBT
Tax
PAT
PAT M
Annual Financial Highlights
FY22
624.2
359.7
-45.3
2.6
40.7
193.0
73.9
11.8%
1.4
24.4
20.3
0.0
30.7
7.9
22.7
3.7%
FY21
335.4
174.2
5.7
1.7
26.8
92.0
35.0
10.4%
4.3
9.7
12.4
1.5
18.6
4.9
13.7
4.1%
Y-o-Y (%)
86.1%
111.4%
142bps
66.2%
(44bps)
Balance Sheet as on 30th September 2022
Rs. Crore
Equity Equity Share Capital Other Equity Non-Current Liabilities Long Term Borrowings Other Financial Liabilities Provisions Deferred Tax Liabilities (Net) Other Non-Current Liabilities Current Liabilities Short Term Borrowings Trade Payables Dues to micro & small enterprises Dues to other than micro & small enterprises Other Financial Liabilities Other Current Liabilities Provisions Current Tax Liability (Net) Total Equity & Liabilities
As on 30th Sept’ 2022 339.6 19.9 319.7 346.3 284.2 8.8 2.9 44.4 6.0 283.4 133.0
5.7
88.9
0.4 28.6 19.0 7.6 969.3
As on 31st Mar 2022 286.8 19.9 266.9 340.9 286.2 8.7 2.5 36.1 7.4 259.1 133.4
4.5
83.4
1.0 13.3 23.4 0.0 886.8
Rs. Crore
Non-current Assets Property, Plant and Equipment Capital WIP Other Intangible Assets Financial Assets Investments Trade Receivables Loans Other Financial Assets Other Non- Current Assets Current Assets Inventories Financial Assets Trade Receivables Cash & Cash Equivalent Bank Balance other than Cash Other Current Assets Total Assets
As on 30th Sept’ 2022
As on 31st Mar 2022
653.5 628.8 0.1 6.9
0.0 2.3 0.1 10.3 5.0 315.8 183.0
100.3 0.5 5.7 26.2 969.3
610.1 593.5 0.5 0.3
0.0 2.4 0.1 10.2 3.1 276.6 155.4
82.6 0.5 5.6 32.6 886.8
Key Financial Ratios
Return on Equity
Return on Capital Employed
Debt to equity
10.1%
5.2%
7.9%
5.1%
4.6%
7.2%
1.7
1.4
1.5
FY20
FY21
FY22
FY20
FY21
FY22
FY20
FY21
FY22
ROE – PAT/Shareholders Fund; ROCE – EBIT/(Shareholders Fund+Total Debt – Investments); Debt to Equity – Total Debt/ Equity
Way Ahead
Laminates
MDF
Working towards accretive value creation
Increase capacity utilization • • Work towards increasing utilization of laminates capacity from current levels
Achieve optimum capacity utilization in existing plants and attain higher efficiencies
Further expand market presence • •
Enhance distribution reach – new channel partners and category penetration in existing channels Enhance penetration with leading architects and interior designer community with state-of-the-art tools
Product & Services • • •
Capture customer feedback and changing trends to differentiate portfolio Premiumization of portfolio, increase in contribution of value added products in the revenue mix Relentlessly focus on offering quality products and services
Ensure sustainable and responsible growth through Agro Forestry
What is agroforestry? • Land use system which integrate trees and shrubs on farmlands and rural landscapes to enhance productivity,
profitability, diversity and ecosystem sustainability.
Win-win for Farmers & RDL
Active participation in government- sponsored agroforestry projects
Farmers in coffee growing regions of South India growing trees on farmland
Fast growing trees such as eucalyptus, acacia, silver oaks
RDL strategically sources Agro-forestry wood from farmers
Benefits
Environmental protection security
Increasing forest / tree cover
Income and livelihood opportunities for rural smallholder farmers
Improvement in productivity
Farmers gain second source of income
Conservation of natural resources & forest
Thank you
Rushil Décor Limited Mr. Hiren Padhya, Chief Financial Officer, Email – hiren.padhya@rushil.com Website – www.rushil.com
Adfactors PR, India Mr. Shiv Muttoo/ Mr. Smit Shah Tel - +91 9833557572/ +91 9870789596 Email – shiv.muttoo@adfactorspr.com | smit.shah@adfactorspr.com