Rushil Decor- Q2 Results & Rushil Décor to set up a new, make-in-India, greenfield decorative laminates plant in Gujarat

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Rushil Decor

Announcing unaudited consolidated financial results for the quarter and half year ended on September 30, 2022, Rushil Décor Ltd. (BSE: 533470. NSE: Rushil), a global leader in smarter living solutions to boost climate protection in the region, stated that it will set up a 1.2 million sheet p.a. new, modern, make-in-India, greenfield decorative laminates (including bigger size i.e. Jumbo size) manufacturing plant in Gujarat to consolidate its leadership in the wood panel industry and expand its margin profile. The investment in the fully-integrated plant amounts to Rs. 60 crore and illustrates Rushil Décor’s long-term vision to boost indigenous production capacity and operational efficiency, expanding the range of value-added solutions and strengthening its commitment to sustainability of the business and shaping a greener planet.

Mr. Krupesh G Thakkar, Chairman & Managing Director, Rushil Décor Ltd, said, “We have embarked upon a transformational journey and our Vizag plant, which was setup with a vision to capture the growing demand in the MDF market and boost make-in-India manufacturing, has enabled us gain both scale and market share in the industry. Committed to the Make in India mission, and open collaborations, Rushil Décor is passionate about making the firm a national asset, through agroforestry, creation of jobs, rural uplift, sustainable livelihood, and smart living.”

The company reported Q2 FY23 operating revenues at Rs. 203.4 Crore, growth of 18.7% Y-o-Y basis, driven by strong growth in MDF leading to higher revenues and margin expansion. While MDF business revenues grew by 23% on Y-o-Y basis contributing Rs. 149.0 crore in Q2 FY23 compared to Rs. 121.0 crore in Q2 FY22 – Laminates contributed Rs. 52.8 crore in Q2 FY23 compared to Rs. 50.8 crore in Q2 FY22.

EBITDA for Q2 FY23 reported at Rs. 47.1 crore, as against Rs. 21.9 crore in the Q2 FY22, a Y-o-Y growth of 115.2%, and Net Profit reported of Rs. 26.7 crore, as against Rs. 7.7 crore in Q2 FY22, growth of 247.2% on Y-o-Y basis. While EBITDA margin increased by 1,039 bps in Q2 FY23 to 23.17% as against 12.78% during the Q2 of the previous financial year- PAT margin stood at 13.12% in Q2 FY23.

For the half year ended September 30, 2022, net revenue from operations reported at Rs. 414.2 crore, growth of 57.9%, in which MDF business revenues grew by 82% in value terms and 53% in volume terms. While MDF contributed Rs. 309.8 crore in H1 FY23 compared to Rs. 170.5 crore in H1 FY22, Laminates contributed Rs. 100.5 crore in H1 FY23 compared to Rs. 92.6 crore in H1 FY22. EBITDA stood at Rs. 94.6 crore in H1 FY23 as against Rs. 23.4 crore in the previous year, a growth of 304.3% on y-o-y basis. The net profit was at Rs. 53.9 crore in H1 FY23 with a margin of 13.0%.

Speaking on the financial results, Mr Krupesh G Thakkar, Chairman & Managing Director, Rushil Décor Ltd, said, “I am happy to report exceptionally strong performance during Q2, which is traditionally a weaker quarter for our business. We have demonstrated a significant scale up in revenue growth, margin expansion and profit improvement compared to the same quarter last year led by strong volume growth with expanding demand for our products across markets. While the industry has witnessed slight margin pressure owing to a rise in prices of key inputs, the demand pick up is a silver lining that is likely to support volumes and margins in coming quarters. Over the last couple of quarters, we have proven ability to quickly respond to the growing demand and offer quality products to customers in line with this strategy.”

According to industry insights, growing consumer awareness and a wide range of application is driving increased adoption and consumption of MDF in India, as the industry is expected to grow at a CAGR of 15%-20% over the next five years. India is a significant player of MDF, being used as a leading interior infrastructure materials.  Compared to 70% market share in developed nations, MDF has just 30% market share in India reflecting high potential for MDF.

MDF is an engineered product made of wood fibers bonded under high pressure using thermosetting resins and wax, forming beautiful panels by applying high temperature and pressure, for strength. Many MDF qualities make it an ideal replacement for wood, plywood and particle boards.

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