Rushil Decor Limited has informed the Exchange about Investor Presentation
••• ••• ••• RUSHIL
DECOR LIMITED
WE'L L MAKE IT
RDL/046/2023-24 Date: 09.08.2023
To, National Stock Exchange of India Ltd. Exchange Plaza, Bandra - Kurla Complex, Bandra (E), Mumbai - 400051 NSE EQUITY SYMBOL: RUSHIL
To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001 BSE SCRIP CODE: 533470
Dear Sir/Madam,
ISIN: INE573K01017
Sub: Investor Presentation for the Quarter ended June 30, 2023
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, 2023.
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: a/a
••• RUSHIL 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, 01ST. GANDHINAGAR-382845, GUJARAT , INDIA . I GIN: L25209GJ1993PLC019532
PH: +91-79-61400400 I FAX: +91-79-61400401 I EMAIL: INFO@RUSHIL.COM I WWW.RUSHIL.COM
Investor Presentation Q1 FY24
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.
Management Comment
“Reflecting upon the challenges we have encountered, it is essential to recognize the positive strides we have made despite the hurdles. While our year-on-year figures have experienced a dip, let us not overlook the encouraging upward trajectory we have maintained on a sequential basis. This upward movement is a true testament to our unwavering commitment to operational excellence and cost management.
I am delighted to announce successful completion of the Rights issue which stands as a remarkable accomplishment that will reverberate throughout our financial landscape. The fruits of this endeavor are clearly demonstrated by our debt-to-equity ratio now standing at an impressive 0.65, bringing us closer to our long-standing goal of debt reduction.
Amidst these triumphs, we are elated to report that our operating margins have exhibited remarkable improvement, surging by 180 basis points on a sequential basis. We remain steadfast in our commitment to enhancing our operational efficiency, which continues to be a cornerstone of our growth strategy.
One other important highlights of this quarter is the improvement in domestic realization. This sequential rise is a clear indication of both the strength of our brand and the favorable demand-supply dynamics prevailing in the market. Our laminates business, recorded not only substantial EBITDA growth but also a notable expansion in margins. This can be attributed to a decline in raw material costs, combined with, efforts on product quality, optimize supply chain, and foster innovation within the segment.
As we navigate the future, our strategic compass remains unwavering. We exude confidence in our direction and the strategic measures we have taken to enhance profitability and effectively navigate challenges. Our commitment to delivering consistent value to our stakeholders is unwavering. Through transparency, innovation, and prudent management, we strive to nurture lasting relationships that propel us towards greater heights.”
Commenting on the this, Mr. Krupesh G Thakkar, Chairman & Managing Director, said,
Table of content
1.
2.
3.
4.
Company Overview
Q1 FY24 Financial Highlights
Historical Financial Highlights
Way Ahead
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
Digital Parivartan with SAP S/4 Hana
01
02
03
Successful Migration • Historical reliance on Tally for over 30 years • Successful migration to SAP, representing a significant transformation
Go-Live across the Organization • Comprehensive implementation of SAP across entire organization including 5 state-of-the-art manufacturing plants, warehouses, head office, branches and other Business Partners
Implementation in record time • Implementing SAP in just 7 months • Highlights organization's commitment to efficient project management and execution
SAP
Decorative Laminates
Medium Density Fiberboard (MDF)
Offering Specialized Products
Units
3
Capacity
3.49 million p.a.
Utilization Q1 FY24 – 79%
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 Q1 FY24 - 70%
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 (Q1 FY24) – 77%
•
•
Installed Capacity – 2,40,000 CBM per annum.
Utilization (Q1 FY24) – 68%
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 15 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
Q1 FY24 Financial Highlights
Laminates
MDF
Q1 FY24 Financial Highlights
Revenues (Rs. Crore)
Gross Profit (Rs. Crore)
213.9
192.8
93.2
94.3
EBITDA (Rs. Crore) / Margin (%)
13.2%
28.2
15.0%
28.9
PAT (Rs. Crore) / Margin %
6.3%
13.6
6.3%
12.2
Q4 FY23
Q1 FY24
Q4 FY23
Q1 FY24
Q4 FY23
Q1 FY24
Q4 FY23
Q1 FY24
• During the quarter, volumes of value added products under MDF segment increased compared to previous period •
Laminate segment witnessed reduction in prices of key raw materials
Gross Profit – Revenue from operations – Total raw material cost
Quarterly Highlights – Laminates
Revenues (Rs. Crore)
Sales Volumes (Sheets)
Realization (Rs. per sheet)
51.3
41.5
739,998
608,264
693
683
.
0 9 1
.
3 2 3
.
2 5 1
.
3 6 2
,
1 3 0 2 3 3
,
,
7 6 9 7 0 4
,
792
572
738
604
,
5 2 5 2 5 2
,
,
9 3 7 5 5 3
,
EBITDA (Rs. Crore) / Margin %
5.9%
3.0
8.7%
3.6
Q4 FY23
Q1 FY24
Export
Domestic
Q4 FY23
Q1 FY24
Export
Domestic
Q4 FY23
Q1 FY24
Export
Domestic
Q4 FY23
Q1 FY24
• Growth in EBITDA for the quarter was mainly on account of reduction in prices of key raw materials
Quarterly Highlights – MDF
Revenues (Rs. Crore)
Sales Volumes (CBM)
Realization (Rs. per CBM)
EBITDA (Rs. Crore) / Margin (%)
159.1
146.7
66,179
59,089
24,034
24,833
15.9% XX%
17.0% XX%
25.3
25.0
.
4 8 4 1
.
7 0 1
.
8 7 1 1
.
9 8 2
4 3 5 0 6
,
5 4 6 5
,
3 3 0 4 4
,
6 5 0 5 1
,
8 0 5 4 2
4 5 9 8 1
6 5 7 6 2
8 0 2 9 1
Q4 FY23
Q1 FY24
Export
Domestic
Q4 FY23
Q1 FY24
Export
Domestic
Q4 FY23
Q1 FY24
Export
Domestic
Q4 FY23
Q1 FY24
Export volumes grew by over 160% during Q1 FY24 on account of higher exports
• • During the quarter, contribution of value added products increased in the overall volumes compared to previous periods
Quarterly Financial Highlights
Particulars (Rs. Crore)
Q1 FY24
Q4 FY23
Q-o-Q (%)
Q1 FY23
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
192.8
104.8
-6.2
0.0
12.8
52.6
28.9
213.9
119.3
1.5
0.0
12.6
52.4
28.2
15.0%
13.2%
2.3
7.2
7.5
0.0
16.4
4.2
12.2
6.3%
0.3
6.3
6.5
0.0
15.7
2.1
13.6
6.3%
(9.9%)
2.5%
(10.1%)
210.8
105.4
-10.4
0.0
10.9
57.4
47.5
22.5%
0.2
6.1
4.9
0.0
36.7
9.5
27.2
12.9%
(8.5%)
(39.2%)
(55.2%)
Debt Profile
Unlocking Financial Strength: Significantly Reduced Debt-to-Equity Ratio
1.71
1.39
1.44
391.35
367.04
413.52
1.10
400.26
0.65 311.59
31-03-2020
31-03-2021
31-03-2022
31-03-2023
30-06-2023
Net Debt
D/E Ratio
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
450
400
350
300
250
200
150
100
50
0
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
Key Financial Ratios
Return on Equity
Return on Capital Employed
Interest Coverage Ratio
21.4%
16.2%
530%
10.1%
7.9%
5.2%
7.2%
238% 251%
5.1%
4.6%
164%
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
FY20
FY21
FY22
FY23
ROE – PAT/Shareholders Fund; ROCE – EBIT/(Shareholders Fund+Total Debt – Investments); Interst Coverage ratio – EBIT/Interest expenses
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