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Rushil Decor Limited Conference Call Summary (August 2, 2024)
Financial Performance • Quarterly Results (Q1 FY’25) • Revenue: INR 223.5 Crores (15.9% YoY increase, 4.3% QoQ decline) • EBITDA: INR 25.57 Crores (11.4% margin) • Profit Before Tax (PBT): INR 16.49 Crores (marginal growth) • Profit After Tax (PAT): INR 12.31 Crores (0.91% YoY increase, 36.8% QoQ rise)
Segment Performance • MDF Segment • Revenue: INR 169.2 Crores • Export growth: 33.1% YoY • Laminate Segment • Revenue: INR 47.1 Crores • Export growth: 25% YoY • Domestic sales faced a decline
Strategic Initiatives • Production Capacity Expansion • New laminate facility opening in Q3 FY2025 • Stock Split Approval • Aimed at enhancing liquidity • Focus on Sustainable Growth • Targeting high-value customers and exploring value-added products
Management Insights • Rushil Thakkar • Confident in meeting export obligations and customer acquisition strategies • Keyur Gajjar • Pricing stability for value-added products; MDF market growing at 15-20% CAGR • Hiren Padhya • Revenue target for FY’25: INR 950 Crores (10-12% growth expected in FY’26) • Projected EBITDA margins: 14-15% with new projects
Market Outlook • Growth Prospects • Anticipated turnover of over INR 950 Crores for FY’25 • Target EBITDA margin around 14% • Confidence in achieving INR 2,500 Crores target
Challenges and Opportunities • Freight Costs • Rising rates noted, but customers willing to pay for necessary materials • Future Margin Improvements • Expected from increased capacity utilization and a higher proportion of value-added products
Overall, Rushil Decor Limited remains optimistic about its growth prospects and market dynamics, focusing on operational efficiency and strategic expansion.
Rushil Decor Limited Q4 FY'24 Earnings Conference Call Summary
Conference Call Details • Date: May 9, 2024 • Hosted by: Asian Market Securities Limited • Key Participants: • Rushil Thakkar (Executive Director) • Keyur Gajjar (CEO) • Hiren Padhya (CFO) • Availability: Transcript on company website; communicated to National Stock Exchange and BSE.
Financial Performance Highlights • Quarterly Revenue Growth: 9% increase, reaching Rs. 233.42 crores for Q4. • EBITDA: Rs. 29.23 crores; EBITDA margins for FY'24 at 14.21%. • PAT: Decreased to Rs. 9 crores due to tax provisions; adjusted PAT would be Rs. 11.57 crores. • Full Year Revenue: Rs. 844 crores, marginal increase of 0.66%; PAT down from Rs. 77.67 crores in FY'23 to Rs. 43.10 crores.
Segment Performance • MDF Segment: • Sales volume increased by 13%. • Utilization rate reached 96% in March 2024. • Laminate Segment: • Sales volume grew by 6% (7% in Q4). • Utilization rate at 90%. • PVC Segment: Grew by 96% year-on-year. • New Market Entry: Plywood market with plans for significant capacity expansion by 2025.
Future Outlook • Growth Projections: • Targeting revenue of ₹2,500 crores by FY'29. • Expected volume growth of 20-25% for Laminates. • Aiming for over 95% utilization rate for MDF production. • Price Adjustments: Implemented a 7% price hike for exports. • Debt and Inventory Management: Focus on reducing debt and a 10% reduction in inventory levels.
Competitive Landscape • Emerging Competition: Unorganized players expected to grow capacity but limited by older technology. • Market Stability: Organized players anticipated to maintain market share despite competition.
Production Goals • Capacity Utilization: Targeting 96% capacity utilization with a production goal of 26,000 CBM by March. • Value-Added Products: Increasing production of value-added MDF, aiming for 50% of total volume, with aspirations for 65-70% by FY'26.
Revenue Guidance • FY'25 Revenue Target: Exceeding ₹1,000 crores, driven by existing products and new projects. • Combined EBITDA Expectation: 14-16%.
Market Conditions • Demand Fluctuations: Acknowledged concerns, particularly in April, but signs of recovery noted in May.
Rushil Decor Limited Conference Call Summary (January 25, 2024)
Key Management Participants • Executive Director: Rushil Thakkar • CEO: Keyur M Gajjar • CFO: Hiren Padhya
Financial Highlights • Q3 FY2024 Revenue: Rs. 213 Crores • MDF Segment: Rs. 158 Crores • Laminate Segment: Rs. 49 Crores • EBITDA: Rs. 31 Crores (up from Rs. 27 Crores in Q3 FY2023) • Net Profit: Rs. 11.36 Crores (11% YoY increase) • Nine Months Revenue: Rs. 611 Crores (down from Rs. 624 Crores) • Net Profit for Nine Months: Rs. 34 Crores • Debt-to-Equity Ratio: Improved to 0.53
Business Performance • Demand Increase: Significant growth due to festive sales and stable raw material prices. • Value-Added Products: Targeting increase from 52% to 55% by end of Q4 FY2024. • Eco-Friendly MDF Growth: 4% increase in value, 15% in volume. • Chikkamagaluru Plant: Achieved record sales, exceeding 120% capacity utilization. • Export Market: Targeting 15-20% of capacity for exports.
Strategic Initiatives • Sustainability Goals: Plan to plant 8 million saplings by FY2024. • Dealer Network Expansion: Collaborating with local carpenters to enhance market reach. • Laminate Project Expansion: Increasing investment from Rs. 60 Crores to Rs. 90 Crores.
Market Insights • BIS Standards Impact: Expected to enhance product quality and competition. • Freight Costs: Fully passed on to customers; no supply issues reported. • Timber Pricing: Steady increase of 4% to 6% with no significant supply issues expected.
Future Projections • Revenue Growth: Aiming for Rs. 2500 Crores turnover in five years. • EBITDA Margin: Targeting a realistic 18% margin. • MDF Utilization Rate: Targeting 80-85% for FY2025.
OEM Market Insights • OEM Sales: Constitute about 30% of total sales, purchasing both value-added and regular products.
Challenges and Considerations • BIS Standard for Imports: Uncertainty regarding implementation and potential costs. • Debt Management: Current gross debt of Rs. 307 Crores with annual repayments of Rs. 45-55 Crores.
Conclusion • Rushil Decor anticipates robust growth driven by domestic and export demand, urbanization, and government initiatives, while focusing on sustainability and expanding its product offerings.
Rushil Decor Limited Conference Call Summary (November 7, 2023)
Key Executives Present • Rushil Thakkar (Executive Director) • Keyur Gajjar (CEO) • Hiren Padhya (CFO)
Financial Highlights • Quarter and Half-Year Results (ending September 30, 2023) • Operating revenue: ₹204.6 Crores • MDF segment: ₹150 Crores; Laminates: ₹49 Crores • EBITDA: ₹29 Crores (down from ₹47 Crores in Q2 FY2023) • Net profit: ₹11 Crores • Half-year net revenue: ₹397 Crores (4% decline YoY) • Debt-to-equity ratio: 0.61
Recent Developments • Funding and Expansion • Preferential allotment of ₹124.74 Crores for expansion projects • Greenfield project for laminates and MDF operational capex • Certifications • 3-star export recognition • Indian Green Building certification for MDF plant
Market Performance • Demand and Growth • Marginal topline growth despite subdued market demand • Recovery noted in September and increased domestic demand during festive season • 50% of MDF revenue now from value-added products • Export Strategy • Target of 5,000 cubic meters per month • Total export obligation of ₹188 Crores • Export realization: ₹18,000 to ₹19,000 per CBM
Capacity and Production • Current and Future Capacity • Current MDF capacity: 2.8 million CBM; expected increase of 1.3 million CBM in two years • Production of sheets to increase from 1.2 million to 2.5-3 million sheets • BIS Standards Implementation • Expected in March 2024, likely to reduce non-compliant imports
Financial Management • Debt Reduction • Total debt reduced from ₹406 Crores to ₹308 Crores • Annual repayments planned: ₹55 to ₹60 Crores • Capital Expenditure • Revised capex for new expansion project: ₹90 Crores (up from ₹60 Crores)
Market Opportunities • Product Mix and Margins • Focus on increasing density of industrial-grade products • Export margins projected between 8% and 12% • Raw Material Availability • Essential materials for laminates readily available without significant pricing issues
Closing Remarks • Acknowledgment of stakeholder engagement and commitment to operational stability and growth.
Rushil Decor Limited Earnings Conference Call Summary
Date and Purpose • Date: August 10, 2023 • Purpose: Discuss unaudited financial results for Q1 FY24 (ending June 30, 2023)
Key Executives Present • Rushil Thakkar: Executive Director • Keyur Gajjar: CEO • Hiren Padhya: CFO
Financial Highlights • Rights Issue: Raised INR 107.49 Crores to reduce debt • Debt-to-Equity Ratio: Improved from 1.71 to 0.65 since March 2020 • Operating Revenues: INR 192.8 Crores • MDF Segment: INR 146.7 Crores • Laminate Segment: INR 41.5 Crores • EBITDA: Increased by 2.5% to INR 28.9 Crores • Net Profit: INR 12.2 Crores
Market Insights • Wood Panel Industry Growth: Projected CAGR of 7.2% from FY23 to FY26 • Domestic Demand Focus: Majority of operations centered on domestic market
Strategic Developments • Transition to SAP: Aimed at enhancing operational efficiency • Value-Added Products: Increased share from 23% to 35% • Export Strategy: Target mix of 70% domestic to 30% exports
Challenges and Responses • Market Dynamics: Slight decline in MDF business due to market conditions and SAP implementation • Concerns on MDF vs. Particle Board: Management confident in MDF's market position • Temporary Pricing Instability: Anticipated due to new capacities in the market
Future Outlook • Volume Targets: 35,000 to 40,000 CBM per quarter for domestic stability • Laminate Margins: Expected to maintain around 10-11% • New Laminate Facility: Details on Capex expected next quarter • Revenue Growth: Anticipated 10% increase in laminates for FY24
Additional Notes • Export Markets: Expanded to Portugal, Africa, and Canada • Timber and Chemical Prices: Timber costs up by 4%, chemical prices stabilized • Interest Expense Projection: INR 26-27 Crores for FY24
Conclusion • Management expressed confidence in navigating market challenges while enhancing stakeholder value and operational excellence.
Rushil Decor Limited Conference Call Summary (May 5, 2023)
Financial Performance • Q4 FY '23 Revenue: INR 213.9 crores (9.6% increase from Q4 FY '22) • MDF segment: INR 159.1 crores (11% growth) • Laminate segment: INR 51.3 crores (4% growth) • Full Year Revenue: INR 838.4 crores (34.3% increase) • MDF growth: 44% • Laminate growth: 12% • EBITDA: • Q4: INR 28.2 crores (10.6% decline, 13.2% margin) • Full Year: INR 149.4 crores (doubled, 17.82% margin) • Profit After Tax: • Q4: INR 13.6 crores (down from INR 15.4 crores) • Full Year: INR 77.7 crores (up from INR 22.8 crores)
Strategic Focus • Product Portfolio Enhancement: Focus on value-added products. • Market Expansion: Added 80 new dealers and distributors. • Debt Reduction: Repaid INR 38 crores of secured debt.
Challenges and Outlook • Challenges: Subdued MDF prices and increased imports. • Future Growth: Optimistic about value-added products and projected revenue growth of 15%-20%.
Margin Insights • Laminate Segment: Lower margins attributed to product mix and promotional schemes; target EBITDA margin of around 11% for next fiscal year. • MDF Segment: • Current margins: 16% with a target to reach 20%. • Value-added MDF products accounted for 27% of volume and 37% of revenue in FY '23.
Market Dynamics • Pricing Dynamics: Anticipated better realizations moving forward despite price pressures. • Timber Costs: Slight increase expected; currently around INR 3,500 per metric ton. • Chemical Prices: Stability with some fluctuations.
Investor Engagement • Management encouraged ongoing communication with investors and expressed optimism about future performance and market conditions.
Rushil Decor Limited Earnings Conference Call Summary
Date and Context • Date of Call: February 14, 2023 • Financial Results: Unaudited results for the quarter and nine months ending December 31, 2022
Key Executives Present • Rushil Thakkar: Executive Director • Keyur Gajjar: CEO • Hiren Padhya: CFO
Financial Performance Highlights • Quarterly Growth: • Operating revenues: 26% increase • MDF segment: 27% growth by value • Laminates segment: 18% growth • Nine-Month Performance: • Net revenue: Rs. 624 Crores (45.5% increase) • MDF contribution: Rs. 462.6 Crores (59% growth) • Laminates contribution: Rs. 156.5 Crores (12% growth) • EBITDA: Surged 101% to Rs. 38.1 Crores • Net Profit: Increased 40.5% to Rs. 10.2 Crores • Margins: • EBITDA margin: 18.1% • PAT margin: 4.9%
Strategic Initiatives • Market Expansion: Added 80 new dealers • Focus on Value-Added Products: To mitigate import pressures • Debt Reduction: Through a rights issue • Capex Plan: Rs. 60 Crores for laminates business expansion
Challenges and Concerns • Forex Losses: Rs. 11.6 Crores primarily from the MDF segment • Rising Wood Prices: Noted an 8% increase quarter-on-quarter • Utilization Levels: MDF segment utilization at 70%
Product Offerings and Pricing • MDF Pricing: Basic MDF board at Rs. 24,000 per CBM, enhanced versions at Rs. 35,000 • Quality Focus: Emphasis on superior specifications and ethical sourcing practices
Future Outlook • Revenue Guidance: Anticipated growth of 15-20% • Margin Stability: Expected MDF margins around 25-26% • Export Strategy: Focus on maintaining market share and exploring global markets
Competitive Landscape • Market Dynamics: Unorganized competition noted but not significantly affecting demand • Raw Material Prices: Currently stable, with careful assessment for cost adjustments
Conclusion • Management expressed confidence in sustaining margins and achieving growth targets despite challenges from forex fluctuations and competition.