Rushil Decor Limited has informed the Exchange about Investor Presentation
••• ••• ••• RUSH IL
DECOR LIMITED
WE'LL MAKE IT
To, SSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 BSE SCRIPT CODE: 533470
RDL/020/2023-24 Date: 04.05.2023
To, National Stock Exchange of India Ltd. Exchange Plaza, Sandra - Kurla Complex, Sandra (E), Mumbai - 400 051 NSE EQUITY SYMBOL: RUSHIL
ISIN: INE573K01017
Sub: Investor Presentation on Audited Financial Results (Standalone) for the Quarter and Year ended March 31, 2023
Dear Sir/ Madam,
Pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith a copy of Investor Presentation on Audited Standalone Financial Results and other highlights of the Company for the Quarter and year ended March 31, 2023.
The same will also be available on the website of the Company at www.rushil.com.
Kindly take the same in your records and do the needful.
Thanking you
Yours Faithfully,
For, Rushil Decor Limited
Hasmukh K. Modi Company Secretary
Encl: as above
■
RUSH IL DECOR LTD., RUSHIL HOUSE NEAR NEELKANTH GREEN BUNGALOW OFF SINDHU BHAVAN ROAD, SHILAJ. AHMEDABAD-380058, GUJARAT, INDIA
REGO OFFICE S. NO. 125, NEAR KALYANPURA PATIA. VILLAGE ITLA, 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@RUSHIL.COM
I WWW.RUSHIL.COM
Investor Presentation Q4 & 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.
Q4 & FY23 Financial Highlights
Company Overview
Industry Overview
Historical Financial Highlights
Way Ahead
Q4 & FY23 Financial Highlights
Laminates
MDF
Management Comment
“In the quarter ended March 2023, we reported a revenue of Rs. 213.9 crore with an EBITDA and PAT of Rs. 28.2 crore and Rs. 13.6 crore respectively. On the laminates business our volumes saw a growth of 11% on a year on year basis. Our quarterly MDF volumes increased by 22% on a year on year basis and 15% on a quarter on quarter basis reflecting our ability to penetrate deeper and command a sizeable position in the industry.
During the quarter, lower realization, marginal rise in price of raw material and increase in imports impacted our margins compared to the last financial year. However with focus on higher capacity utilization and increase in value added product contribution in our revenues, we are in a position to perform better in the coming quarters.
For the full year, I am glad to share that our MDF and laminates business has experienced strong revenue growth. One of the major reason is increased demand for these products in the market, driven by factors such as a growing construction industry and an uptick in consumer spending on home renovation projects. Additionally, we have successfully positioned ourselves as leading supplier of high-quality MDF and laminates, attracting new customers and repeat business.
It is also worth considering that with increasing volumes and topline we are well committed to expand our product offering and improve our manufacturing processes to increase efficiency and reduces cost and continue to monitoring market trends and identifying opportunities for growth in order to sustain and build business's success.”
Commenting on the this, Mr. Krupesh G Thakkar, Chairman & Managing Director, said,
Q4 FY23 Financial Highlights
Revenues (Rs. Crore)
Gross Profit (Rs. Crore)
EBITDA (Rs. Crore) / Margin (%)
PAT (Rs. Crore) / Margin %
195.1
213.9
94.9
93.2
16.2%
13.2%
7.9%
6.3%
31.6
28.2
15.4
13.6
Q4 FY22
Q4 FY23
Q4 FY22
Q4 FY23
Q4 FY22
Q4 FY23
Q4 FY22
Q4 FY23
Gross Profit – Revenue from operations – Total raw material cost
FY23 Financial Highlights
Revenues (Rs. Crore)
Gross Profit (Rs. Crore)
EBITDA (Rs. Crore) / Margin (%)
PAT (Rs. Crore) / Margin %
838.4
422.9
149.4
77.7
11.8%
17.8%
3.6%
9.3%
624.2
307.7
73.9
22.8
FY22
FY23
FY22
FY23
FY22
FY23
FY22
FY23
Gross Profit – Revenue from operations – Total raw material cost
Quarterly Highlights – Laminates
Revenues (Rs. Crore)
Sales Volumes (Sheets)
Realization (Rs. per sheet)
49.4
51.3
665,529
739,998
742
693
.
9 9 1
.
6 9 2
.
0 9 1
.
3 2 3
,
1 3 0 2 3 3
,
,
0 9 1 4 3 3
,
,
9 3 3 1 3 3
,
,
7 6 9 7 0 4
,
892
792
594
572
EBITDA (Rs. Crore) / Margin %
5.6%
2.8
5.9%
3.1
Q4 FY22
Q4 FY23
Export
Domestic
Q4 FY22
Q4 FY23
Export
Domestic
Q4 FY22
Q4 FY23
Export
Domestic
Q4 FY22
Q4 FY23
•
Strong demand for company’s product in global market led to increase in volumes of laminates export by 23%
Quarterly Highlights – MDF
Revenues (Rs. Crore)
Sales Volumes (CBM)
Realization (Rs. per CBM)
EBITDA (Rs. Crore) / Margin (%)
143.1
159.1
54179
66179
27,410
24,034
20.4% XX%
15.9% XX%
.
4 7 2 1
.
7 5 1
Q4 FY22
.
4 8 4 1
.
7 0 1 Q4 FY23
0 3 1 7 4
,
9 4 0 7
,
Q4 FY22
4 3 5 0 6
,
5 4 6 5 Q4 FY23
,
Export
Domestic
Export
Domestic
0 3 2 7 2
5 1 3 2 2
8 0 5 4 2
4 5 9 8 1
Q4 FY22
Q4 FY23
Export
Domestic
Q4 FY22
Q4 FY23
29.2
25.3
• Domestic volumes increase by 28% to 60,534 cbm compared to 47,130 cbm in Q4 FY22 • During the quarter, on account of lower realization and marginal impact of rise in price of woods impacted EBITDA margin
Quarterly & Full Year Financial Highlights
Particulars (Rs. Crore)
Q4 FY23
Q4 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
213.9
119.3
1.5
0.0
12.6
52.4 28.2
195.1
113.2
-13.9
0.8
10.5
52.9 31.6
13.19%
16.18%
0.3
6.3
6.5
0.0 15.7
2.1 13.6
-1.6
6.3
2.9
0.0 20.7
5.3 15.4
6.34%
7.90%
9.6%
(10.6%)
(299 bps)
(12.0%)
(156 bps)
FY23
838.4
433.1
-17.6
0.0
47.1
226.4 149.4
FY22
624.2
359.7
-45.3
2.1
40.7
193.0 73.9
17.82%
11.85%
1.4
26.0
23.5
0.0 101.2
23.6 77.7
1.4
24.4
20.3
0.0 30.7
7.9 22.8
9.26%
3.65%
Y-o-Y (%)
34.3%
102.0%
597 bps
240.6%
561 bps
•
Increase in volumes of MDF and laminates drives growth in revenue for both quarter and full year 31st march 2023
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 560+ direct distributors & 4,160+ 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 FY23 – 84%
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 FY23 – 75%
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 (full year) – 82%
•
•
Installed Capacity – 2,40,000 CBM per annum.
Utilization (full year) –72%
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 560+ distributors and 4,160+ 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
28,82,816
27,78,474
26,82,847
586
601
691
714
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
EBITDA (Rs. Crore)/ Margins (%)
Export Realization (Rs. per sheet)
9.9%
10.7%
16.3
18.8
7.4%
15.3
6.5%
12.3
657
698
788
807
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
Annual Highlights – MDF
Sales Volumes (CBM)
Realization (Rs. per CBM)
2,36,579
1,76,545
83,592
77,520
24,416
26,234
19,733
10,041
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
EBITDA (Rs. Crore)/ Margins (%)
Export Volumes (CBM)
Export Realization (Rs. per CBM)
21.6%
134.3
14.8%
64.4
FY22
FY23
13.6%
11.6%
22.7
FY20
18.1
FY21
38,310
22,239
22,103
14,114
20,975
20,892
367
FY20
232
FY21
FY22
FY23
FY20
FY21
FY22
FY23
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
FY23
838.4
433.1
-17.6
0.0
47.1
226.4
149.4
FY22
624.2
359.7
-45.3
2.1
40.7
193.0
73.9
17.82%
11.85%
1.4
26.0
23.5
0.0
101.2
23.6
77.7
9.26%
1.4
24.4
20.3
0.0
30.7
7.9
22.8
3.65%
Y-o-Y (%)
34.3%
102.0%
597 bps
240.6%
561 bps
Balance Sheet as on 31st March 2023
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 31st March 2023 363.4 19.9 343.5 334.7 268.6 9.2 2.8 49.0 5.2 299.5 137.1
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
6.6
125.2
0.1 17.7 12.8 0.0 997.6
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 31st March 2023
As on 31st Mar 2022
659.9 634.7 0.1 6.6
0.0 3.6 0.1 9.7 5.2 337.7 186.7
118.7 0.5 4.9 26.8 997.6
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
21.4%
16.2%
1.7
1.4
1.5
1.1
10.1%
7.9%
5.2%
7.2%
5.1%
4.6%
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
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 of MDF plants • •
Achieve optimum capacity utilization in existing plants and attain higher efficiencies Focus on reaching higher utilization levels of 90%-95% from current (75% FY23) within next two years
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