Rushil Decor Limited — PPTs, 15-05-2025: Investor Presentation

1. Financial Highlights:

Revenue rose 6.4% YoY to Rs 898 Cr, driven by MDF Boards at Rs 664 Cr (+5.2%) and Laminates at Rs 199 Cr (+4.7%). EBITDA declined 11.8% to Rs 106 Cr, with margins softening to 11.8%, reflecting margin pressure. PAT improved 11.1% to Rs 48 Cr, with a margin of 5.3%. MDF exports showed strong volume growth (+32.4%) and better realizations. Capacity utilization remained healthy at 87% for MDF and 86% for Laminates. Net debt-to-equity ratio improved sharply to 0.41x from 1.10x two years ago, indicating solid deleveraging.

2. Strategic Initiatives & Growth Drivers:

Commercial production started at the new Jumbo Laminates facility in Gandhinagar with 1.2 million sheets/year capacity, targeting exports to the US and Europe. Phase 2 expansion is planned for October 2025 to boost capacity further. Focus is intensifying on value-added MDF boards, aiming for 50% volume and 60% value by FY26. Sustainability efforts continue with over 140 million trees planted for raw material security.

3. Business Developments:

Entered the plywood market through a 51% joint venture in Chikmagalur, adding 300 boards/day capacity. Sales network expanded to 720+ distributors and 4,600 retailers. Exports now reach over 57 countries, with growing adoption of Vir-branded products, including Jumbo Laminates.

4. Market Position & Competitive Advantage:

Rushil stands as India’s 3rd largest MDF manufacturer with a leading organized presence in laminates and MDF. Its integrated manufacturing across six plants near agroforestry zones ensures supply reliability and cost benefits. Strong brand equity, an extensive distribution network, and innovation in value-added products and Jumbo Laminates create sustainable competitive advantages.

5. Investor Implications:

Capacity additions, portfolio diversification, and deeper penetration into export markets underpin positive growth potential. Margin pressures and rising industry capacity pose execution risks to track, but strong deleveraging and rising PAT imply improving financial health. Emphasis on higher-value offerings and sustainability supports long-term profitability and market positioning.