Responsive Industries Limited · NSE:RESPONIND
Responsive Industries — Investor Presentation (January 2025)
44 slides from Responsive Industries's investor presentation, January 2025
Slide 1: Responsive Industries Ltd Investor Presentation January 2025
RESPONSIVE INDUSTRIES LTD Value Focused Growth... INVESTOR PRESENTATION | JANUARY 2025
Slide 2: Agenda
Agenda Company Overview 03 Growth Drivers 30 Investment Rationale 09 Industry Outlook 32 Key Products 17 Financial Highlights 35 (Quarterly) Financial Highlights 38 (Yearly)
Slide 3: Company Overview
RESPONSIVE" Company Overview
Slide 4: India's Fastest Growing Vinyl Flooring Manufacturer
Responsive Industries - India’s Fastest Growing Vinyl Flooring Manufacturer Leading Player in manufacturing, marketing, and distribution of Stone Plastic Composite (SPC) flooring, Luxury Vinyl Plank (LVP) flooring, Resilient Sheet Vinyl, Synthetic Leather, Synthetic Ropes, and Waterproof Membrane 5,
Slide 5: Journey from Inception to Leading Player
Journey from Inception to Leading Player Foray into International Focus on Value Added Expansion Markets Products 2021: Capacity addition of 2000: Commenced 2010-12: Shifted focus to SPC and LVP at Boisar Plant production of contract sheet value-added innovations vinyl. Received in flooring 2022: Es
Slide 6: Operates in 3 Major Verticals with Effective Group Structure
Operates in 3 Major Verticals with Effective Group Structure Product Structure Tiles and Synthetic Water proofing Flooring Materials membranes PVC Vinyl Tiles Specialized Synthetic specialized Tiles leather covers Synthetic Luxury Vinyl Synthetic ropes Tiles ropes Stone plastic composites (SPC) Page
Slide 7: Experienced Team - Over 20+ Years of Experience
Experienced Team - Over 20+ Years of Experience Mr. Rishabh Agarwal Mr. Mehul Vala Non-Executive, Non-Independent Director & Chairman Whole-Time Director & CEO • Education : BSC in Mechanical Engineering and Business Administration • Experience: 20+ years in corporate finance, strategy, operations,
Slide 8: Major Projects
Major Projects RESPONSIVEV
Slide 9: Investment Rationale
RESPONSIVE" Investment Rationale
Slide 10: Investment Rationale
Investment Rationale LVP & SPC – Huge Opportunity Focus on Value Added Products LVP & SPC market size in USA is projected to reach The company is focused on value added USD 7.2 Bn by FY27; even if we capture 3% of the products thus confident to maintain market, the opportunity is around USD 220 Mn 2
Slide 11: Stellar USD 7.2 Billion Opportunity Ahead
1 Stellar USD 7.2 Billion Opportunity Ahead Exports (Rs. Crores) Achieved Rs. 386 Cr Sales at Current Utilization of ~50%; Huge Potential Ahead 397 386 There is significant growth potential in the SPC and 285 LVP in the years to come. The main factor driving 188 growth is SPC and LVP as the primary
Slide 12: Cutting-Edge Production Capabilities
2 Cutting-Edge Production Capabilities Indian manufacturing facility is located in Boisar, which is 120 kilometers (~75 miles) north of Mumbai, Maharashtra 100 Acres Park with 65 Facility is fully It features large raw Proximity to a port and Includes a Research & acres utilized and backward integra
Slide 13: Strong Balance Sheet
3 Strong Balance Sheet Consistently growing Networth Moving Towards Positive FCF* Increasing Return Ratios Net Worth (Rs. Cr) Free Cash Flow (Rs. Cr) ROCE (%) 1,137 16.6% 35 1,002 1,003 0 972 FY21 FY22 FY23 FY24 -34 6.8% 5.6% 2.5% FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 -270 *Net Cashflow from opera
Slide 14: Focus on Value Added Products
4 Focus on Value Added Products Shift Towards High Value Products 3000 0.25 22% 2,515 2500 2,186 2,247 18% 0.2 2,106 17% 2,006 2000 15% Value Addition 0.15 12% 1500 11% 1,247 11% 10% 10% 9% 9% 1,087 8% 0.1 1000 775 756 1,103 533 974 0.05 500 0 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
Slide 15: Consumer-Focused Presence in India Through Robust Distribution Network
5 Establishing a Consumer-Focused Presence in India Through a Robust Distribution Network India's largest manufacturer, with a presence in all states through a network of over 100 distributors Globally Ranks as the 5th largest manufacturer in Vinyl Flooring, with more than 300 international distribu
Slide 16: Developing Robust Strategy to Grab the Market Share
6 Developing Robust Strategy to Grab the Market Share Sales Strategy Large Retail Sales Institutional Sales Projects Channel Exports Catering to large retail To build LVP & SPC Government Expanding Distribution Branded presence in players with size of over sales for Hotels, specifications for networ
Slide 17: Key Products
RESPONSIVE" Key Products
Slide 18: SPC Flooring and LVP Flooring
Stone Plastic Composite (SPC) Flooring Luxury Vinyl Plank (LVP) Flooring
Slide 19: SPC and LVP – One of the Fastest Growing Market
SPC and LVP – One of the Fastest Growing Market Lifetime Click System Natural Look 100% Residential Warranty Easy Installation Looks Natural Feels Real Recyclable & Waterproof Launched IMPACT in 2019: Introduced SPC & LVP flooring products under the brand name IMPACT Luxury Wooden Vitrified Ceramic
Slide 20: IMPACT Brand: Wide Range of Products
IMPACT Brand: Wide Range of Products Page 20
Slide 21: Distributor Network: USA
Distributor Network: USA Private Label Programs (Hq) • Coverage in all 50 US States • Territories where shipments have been made • Branded Program • Coverage in 30 out of 50 USA States • Distributors promoting Responsive brand through retail and commercial channels • Allure, Prestige, Inspire, Elega
Slide 22: Vinyl Flooring
Vinyl Flooring Page 22
Slide 23: Vinyl Flooring – Tapping the Fast-Growing Segments
Vinyl Flooring – Tapping the Fast-Growing Segments Contract Sheet Vinyl Printed Flooring Advanced Chemistry Healthcare, Education, General Purpose mass use, • New phthalate-free technology completely replaces the old plasticizers with new Sports, Industry, Hospitality, Low-cost dwelling, Low-cost he
Slide 24: PVC Leather Cloth
PVC Leather Cloth Page 24
Slide 25: PVC Leather Cloth
PVC Leather Cloth Upholstery Fabrics Leather Transport High Shear Strength Chairs, sofas & accessories, Indian and Global: Railways, • Greater than industry standards due to backward integration of polyester and poly viscos fabric Surface furnishing and Automotive, Metros, trams, • Guaranteed shear
Slide 26: PVC Water Proofing Membrane
PVC Water Proofing Membrane Page 26
Slide 27: PVC Water Proofing Membrane – Capitalizing on Infrastructure Growth
PVC Water Proofing Membrane – Capitalizing on the Infrastructure Growth PVC waterproofing membranes, also known as PVC covers, are essential for preventing water infiltration in infrastructure projects They are commonly utilized for the protection of roofs, tunnels, swimming pools, and subterranean
Slide 28: Synthetic Ropes
Synthetic Ropes Page 28
Slide 29: Synthetic Ropes
Synthetic Ropes The Company specializes in producing synthetic ropes for the marine industry, encompassing materials like PP, PE, nylon, and polyester These ropes find applications across various sectors such as shipping, naval operations, cargo handling, oil rigs, and fishing The Company boasts the
Slide 30: Growth Drivers
RESPONSIVE" Growth Drivers
Slide 31: Key Growth Drivers
Key Growth Drivers Import Duty on China* Expanding B2B and B2C presence Focus on Value-Added Products U.S. tariffs on Chinese goods and high Globally, company stands as the 5th largest in its field, with Specialized infrastructure project covers yield production costs in the West boost India's vinyl
Slide 32: Industry Outlook
RESPONSIVE" Industry Outlook
Slide 33: Huge Market Opportunity in India
Huge Market Opportunity in India USD 32 Billion CAPEX in Railways For FY 2024-25, the government has allocated record CAPEX of Rs. 2,62,200 Cr (USD 31.7 Bn) for Railways ~40,000 Bogies into Vande Bharat Standards To improve passenger safety, convenience, and comfort, 40,000 standard rail bogies will
Slide 34: Global Industry Outlook
Global Industry Outlook Indian Luxury Vinyl Tile Flooring Market Estimates & Forecasts by Region 2017-2030 (USD Billion) 4.1 Global Luxury Vinyl Tile Flooring Market Estimates & Forecasts by Global Luxury Vinyl Tile Flooring Region 2017-2030 (USD Billion) Market Estimates & Forecasts by 2.4 Region 2
Slide 35: Financial Highlights (Quarterly)
Financial Highlights (Quarterly) Page 35
Slide 36: P&L Statement Highlights (Consolidated)
P&L Statement Highlights (Consolidated) Particulars (In Rs Cr) Q2 FY25 Q2 FY24 YoY% Q1 FY25 QoQ% H1 FY25 H1 FY24 YoY% Revenue from Operations 349.5 268.3 30.3% 319.9 9.3% 669.4 531.5 25.9% COGS 234.3 167.2 210.7 445.0 350.9 Gross Profit 115.3 101.1 14.0% 109.2 5.6% 224.4 180.6 24.3% Gross Margin % 3
Slide 37: Financial Track Record - Quarterly Trend
Financial Track Record - Quarterly Trend Revenue (₹ Cr) EBITDA (₹ Cr) and EBITDA Margin PAT (₹ Cr) and PAT Margin 30.3% YoY 18.6% YoY 21.2% YoY 23.1% 15.9% 15.1% 60 17.0% 22.3% 100 25.0% 90 24.8% 20.7% 16.7% 14.1% 15.0% 349.5 22.8% 50 15.2% 72.5 80 20.0% 13.0% 319.9 71.3 48.4 49.3 288.2 70 66.5 66.7
Slide 38: Financial Highlights (Yearly)
Financial Highlights (Yearly) Page 38
Slide 39: P&L Statement Highlights (Consolidated)
P&L Statement Highlights (Consolidated) Particulars (In Rs Cr) FY20 FY21 FY22 FY23 FY24 Revenue from Operations 533.1 755.7 1,103.4 973.7 1,087.0 COGS 330.2 527.2 846.5 686.0 697.9 Gross Profit 203.0 228.5 257.0 287.7 389.1 Gross Margin % 38.1% 30.2% 23.3% 29.5% 35.8% Employee Expenses 16.9 12.9 16.
Slide 40: Balance Sheet Highlights (Consolidated)
Balance Sheet Highlights (Consolidated) ASSETS (Rs. Cr) Mar'20 Mar'21 Mar'22 Mar’23 Mar’24 EQUITY & LIABILITIES (Rs. Cr) Mar'20 Mar'21 Mar'22 Mar’23 Mar’24 Non-Current Assets Equity a. Property, Plant and Equipment 550.4 849.1 753.7 691.2 814.6 a. Equity Share capital 26.2 26.2 26.2 26.7 26.7 b. Goo
Slide 41: Financial Track Record
Financial Track Record Revenue (₹ Cr) EBITDA (₹ Cr) and EBITDA Margin 22.3% 1,103.4 1,087.0 973.7 250 23.0% 755.7 16.9% 200 11.3% 242.8 18.0% 533.1 18.3% 9.9% 150 13.0% 19.5% 25.6% 100 8.0% 127.5 109.8 110.0 CAGR CAGR 50 97.5 3.0% 0 -2.0% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 PAT (₹ Cr)
Slide 42: Financial Track Record - Balance Sheet Ratios
Financial Track Record Balance Sheet Ratios RoE (%) ROCE (%) Debt-to-Equity (x) 14.2% 16.6% 0.4 0.4 0.4 0.3 6.8% 5.6% 0.2 2.2% 2.4% 2.5% 4.2% 2.5% 0.0% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Fixed Asset Turnover (x) Total Asset Turnover (x) Net Worth (in Cr) 1,103
Slide 43: Disclaimer
Disclaimer This presentation has been prepared by Responsive Industries Limited solely to provide information about the Company. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such informati
Slide 44: Thank You
Thank You For further details please contact: Vikash Verma / Abhishek Bhatt / Shrishti Tandon Ernst & Young LLP : vikash.verma1@in.ey.com : abhishek.bhatt3@in.ey.com : shrishti.tandon@in.ey.com
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