Rushil Decor Ltd. · NSE:RUSHIL
Rushil Decor — Q3 FY2024 Earnings Presentation
33 slides from Rushil Decor's earnings presentation, February 2024
Slide 1: Investor Presentation Q3 FY2024
Rushil Décor Limited INVESTOR PRESENTATION Q3 FY2024
Slide 2: Disclaimer and contents
This presentation has been prepared by are individually and collectively forward- Rushil Décor Limited (the “Company”) looking statements. Such forward-looking solely for information purposes and does statements are not guarantees of future not constitute any offer, recommendation performance and ar
Slide 3: Q3 FY24 highlights
• The revenue from operations for the third quarter of FY24 stood at INR 213 crore, marking a notable sequential growth of 4%. This positive trend can be attributed to robust festive demand and strong traction from both domestic and export markets. • In the month of December, our Chikmagalur plant i
Slide 4: Chairman's Message
Mr. Krupeshbhai G. Thakkar “The company's significant advancement on its growth path instills optimism for a strong performance in Q4FY24 as well. As we propel towards our long-term vision, we chart a course of expansion, recognizing the pivotal role of prudent decision-making and avoid overleveragi
Slide 5: Utilisation of funds
Amount Upto Tentative Time Frame for Sr. No Particulars (Rs. In Cr) Utilisation Decorative laminates including bigger size Upto 2 years from the 1. (Jumbo size) laminates manufacturing 90.00 date of receipt of fund Project at Mansa Upto 2 years from the 2. Working Capital Margin Requirement 10.00 da
Slide 6: Net debt and debt-to-equity ratio
450 1.6 413.52 400.26 400 1.4 1.44 350 311.59 1.2 302.28 300 281.96 1.10 1 250 While we aim to capitalize 0.8 on emerging opportunities, 200 we aspire to uphold our 0.6 debt-to-equity ratio within 150 0.65 0.61 1, ensuring a balanced and 0.53 0.4 responsible financial 100 structure 50 0.2 0 0 31-03-
Slide 7: Company overview
100+ Year lineage of wood engineering. SKUs / Designs Distinct Brands 25+ Years in Decorative Laminates & MDF Boards 2nd Largest Direct Distributors Retailers Dealers manufacturer of MDF boards and one the largest player in organized laminates. 5 State-of-the-art manufacturing facilities across Indi
Slide 8: Laminates capacity and applications
3 3.49 Million 80% Sheets Per Annum Average Capacity Units Installed Capacity Utilization for Q3FY24 APPLICATION Commercial Home Furniture Cabinet Doors Desktops Wardrobes Wall Paneling Furniture Rushil Décor Limited | Investor Presentation 8
Slide 9: Jumbo laminates expansion benefits
Benefits Production RDL, 608, GIDC Mansa, Dist. Gandhi Nagar, Gujarat Increased Capacity sheets per annum Improved quality with jumbo size Expected Revenue Potential in FY25 Catering to developed markets – Europe, USA, Australia and New Zealand Improved top and bottom line Growth trajectory - last y
Slide 10: MDF capacity and applications
2 3,30,000 CBM 72% Per Annum Average Capacity Units Installed Capacity Utilization for Q3FY24 APPLICATION Residential & Doors & Architectural Industrial Display Commercial Wall Paneling Sports Goods CNC Routing Flooring Partition Moldings Products Cabinets furniture Cornices Rushil Décor Limited | I
Slide 11: Value-added product share targets
Quantity in % TARGET FOR Q4FY24 45% 41% 43% 35% 27% Q4FY23 Q1FY24 Q2FY24 Q3FY24 TARGET FOR Q4FY24 39% 45% 50% 52% 55% Q4FY23 Q1FY24 Q2FY24 Q3FY24 Value in % As per our guidance earlier in the year to achieve a target of 45% in quantity and 55% in value terms, we are pleased to report that we are wel
Slide 12: Ensuring sustainable supply of wood
27,000 ~15 mn ~135 mn ~8 mn ENSURING SUSTAINABLE SUPPLY OF WOOD Trees planted in Karnataka Hectares of land cultivated Plantation supported to the farmers Saplings to be planted by FY24 and Andhra Pradesh Benefits to Benefits to Benefits to Farmers Community Rushil Décor Limited Famers can now use t
Slide 13: Industry networking and plantation initiatives
• Networking with Indian Paper Manufacturers Association (IPMA) for encouraging plantation in commanding areas of Rushil Décor Ltd.’s units. • Learning and practicing with Wood is Good magazine and development of National working plant code for forest management standards (IWST/ IPIRTI, Autonomous b
Slide 14: Expansion into newer regions
Russia Europe Gulf & Middle East North America India Africa Indonesia Saudi Arabia Australia Latin America Rest of Asia Pacific As we embark on our expansion into newer regions, we see significant opportunities for our value-added products. We continue to prioritize product development and innovatio
Slide 15: Key strengths and competitive advantages
Strategically Located Manufacturing Plants Product Innovation & Value Engineering Strategically situating our manufacturing facilities near raw We persistently prioritize design material sources guarantees a and quality in our product steady, cost-effective supply innovation, aiming to make our chai
Slide 16: Digital initiatives: SAP, SAC, RFID
SAC – SAP Analytical Cloud Transportation Module RFID Implementation at Warehouse Implementation of SAP phase 2 supports business transformation and innovation, ultimately contributing to organization's long-term success Rushil Décor Limited | Investor Presentation 16
Slide 17: Board and management
Mr. Krupeshbhai G. Thakkar Mr. Rushill Thakkar Mr. Keyur M. Gajjar Mr. Hiren Padhya Mr. Hasmukh K. Modi Chairman Director Chief Executive Officer Chief Financial Officer Company Secretary Bachelor‘s degree in Graduate with over 9 years of Bachelor's degree in Qualified Chartered Associated with Comp
Slide 18: Rushil Décor Limited | Investor Presentation
Rushil Décor Limited | Investor Presentation 18
Slide 19: Retail branding
During the quarter, we successfully covered an extensive area of ~60,000+ sq.ft. through Retail Branding and enhancing brand visibility in the market. Rushil Décor Limited | Investor Presentation 19
Slide 20: Rushil Décor Limited | Investor Presentation
Rushil Décor Limited | Investor Presentation 20
Slide 21: Indian furniture and wood panel industry
Indian Furniture Industry ($ bn) 6% CAGR 9% 8% Plywood 32.8 23.3 Domestic Laminates Wood Panel 15% MDF Industry 68% Particle Board FY21 FY27 Wood panel industry at 7.2% CAGR over FY23-26E 900 800 700 600 530 500 430 Indian Furniture Real estate market in The Market is mainly 400 400 330 industry exp
Slide 22: MDF segment outlook
MDF Segment MDF Share to Reach 50% by 2030 Growth Drivers 70 60 60 Growth in the Real 50 50 Estate Sector 40 50% 40 70% 30 80% 30 90% 20 Modernization of 13 10 50% Furniture Industry 10 30% 20% 10% 0 FY2011 FY2016 FY2021 FY2022 FY2023P FY2025E Rest Of the World India - 2019 India-2022 India- 2030 Ra
Slide 23: Laminates market
100 90 90 80 Laminates business at 65 70 60 11.5% CAGR over FY23-26E 60 50 50 50 40 The laminates market is growing due to 30 30 higher living standards, a preference for 20 modern home furnishings, and increased 10 urbanization 0 FY11 FY14 FY21 FY22 FY23 FY26E Laminates Market Share Laminates Marke
Slide 24: Middle-class growth and demand drivers
Increasing share of middle-class households (Est 2030) (29 M) 7% The surge in demand stems from both High the residential and commercial real estate segments. Middle-class earnings have tripled from FY 13 to FY 22, Upper Mid (168 M) 44% growing from 4.4 lakhs to 13 lakhs. Rising accessibility throug
Slide 25: Q3 FY24 financial highlights
Revenues (Rs. Crore) EBITDA (Rs. Crore) / Margin (%) 14.38% 213.11 30.65 12.62% 210.31 26.53 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Gross Profit (Rs. Crore) PAT (Rs. Crore) / Margin (%) 102.69 4.85% 5.32% 102.57 11.36 10.23 Q3FY23 Q3FY24 Q3FY23 Q3FY24 Gross Profit – Revenue from operations – Total raw material
Slide 26: Laminates segment results
Particulars (Rs. Crore) Q3 FY244 Q2 FY24 Q3 FY23 Y-o-Y (%) Particulars (Rs. Crore) 9M FY244 9M FY23 Y-o-Y (%) Revenue from Laminates 49.40 49.08 55.01 -10.20% Revenue from Laminates 140.00 154.56 -9.42% Domestic 15.41 17.03 18.54 Domestic 47.68 54.11 Export 33.99 32.05 36.47 Export 92.32 100.45 EBIT
Slide 27: MDF segment results
Particulars (Rs. Crore) Q3FY244 Q2 FY24 Q3 FY23 Y-o-Y (%) Particulars (Rs. Crore) 9M FY244 9M FY23 Y-o-Y (%) Revenue from MDF 157.96 149.65 151.93 3.97% Revenue from MDF 454.34 461.58 -1.57% Domestic 127.63 120.00 130.27 Domestic 365.45 392.23 Export 30.33 29.64 21.66 Export 88.89 69.35 EBITDA Margi
Slide 28: Consolidated profit and loss
Particulars (Rs. Crore) Q3 FY244 Q2 FY24 Q3 FY23 Y-o-Y (%) 9M FY24 9M FY23 Y-o-Y (%) Revenue 213.11 204.61 210.30 1.34% 610.54 624.48 -2.23% Cost of Materials Consumed 97.33 109.72 105.42 311.81 313.83 Changes in Inventories 13.10 -3.10 2.31 3.75 -19.09 Employee Cost 15.02 14.07 11.88 41.87 34.59 Ot
Slide 29: Annual financial highlights
Revenues (Rs. Crore) EBITDA (Rs. Crore) / Margin (%) 17.8% 838.4 624.2 11.8% 149.4 73.9 FY22 FY23 FY22 FY23 Gross Profit (Rs. Crore) PAT (Rs. Crore) / Margin (%) 422.9 9.3% 77.7 307.7 3.6% 22.8 FY22 FY23 FY22 FY23 Gross Profit – Revenue from operations – TAotal raw material cost Rushil Décor Limited
Slide 30: Laminates historical performance
Sales Volumes (Sheets) Realization (Rs. per sheet) 28,69,155 28,82,816 27,78,474 691 714 586 601 26,82,847 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 EBITDA (Rs. Crore) / Margins (%) Export Realization (Rs. per sheet) 9.9% 10.7% 6.5% 7.4% 18.8 16.3 788 807 15.3 698 657 12.3 FY20 FY21 FY22 FY23 FY20 FY2
Slide 31: MDF historical performance
Sales Volumes Realization EBITDA (Rs. Crore) / (CBM) 2,36,579 (Rs. per CBM) Margins (%) 13.6% 11.6% 14.8% 21.6% 1,76,545 26,234 134.3 24,416 19,733 83,592 77,520 64.4 10,041 22.7 18.1 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Export Realization (Rs. per CBM) Export Volumes (CBM) 22
Slide 32: Return on equity and capital employed
Return on Equity (%) Return on Capital Employed (%) 16.2% 25.0% 18.0% 21.4% 16.0% 20.0% 14.0% 12.0% 15.0% 10.0% 10.1% 8.0% 7.2% 10.0% 7.9% 5.1% 6.0% 4.6% 5.2% 4.0% 5.0% 2.0% 0.0% 0.0% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 ROE – PAT/Shareholders Fund; ROCE – EBIT/(Shareholders Fund+Total Debt – Inv
Slide 33: Thank You
Rushil Décor Limited Het Choksey Advisors THANK YOU Mr. Hiren Padhya, Chief Financial Officer Mr. Nikunj Seth Email: hiren.padhya@rushil.com | Website: www.rushil.com Email: ir-advisors@hetchoksey.com Phone: +91 79 6140 0400 Phone: +91 9773397958