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Revenue from Operations: INR 2,304 million, a 12.6% year-on-year growth and a 2.4% increase from the previous quarter.
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EBITDA: INR 296 million, a year-on-year growth of 2.4% with an EBITDA margin of 12.9%.
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Profit After Tax (PAT): INR 154 million, representing an 11.9% increase year-on-year.
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Adjusted EBITDA (excluding forex losses): INR 324 million with an enhanced EBITDA margin of around 14%.
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Profit Before Tax (PBT): INR 183 million, yielding a PBT margin of 7.9%.
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First Half Revenue from Operations: INR 4,555 million, a 14.6% year-on-year growth.
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MDF Segment Revenue (Q2): INR 1,717 million, a year-on-year increase of 14.8%.
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MDF Segment EBITDA: INR 226 million with a margin of 13.2%.
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Laminate Segment Revenue (Q2): INR 503 million.
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Laminate Segment EBITDA: INR 65 million with an EBITDA margin of 12.9%.
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Net Debt to Equity Ratio: 0.44, reflecting ongoing deleveraging efforts.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Rushil Decor Ltd (BOM:533470) reported a 19.2% year-over-year increase in MDF segment volume, highlighting strong growth.
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The company achieved a 27.6% year-over-year increase in export volume for MDF, indicating robust international demand.
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Blended realization for laminates increased by 20.8% year-over-year in the domestic market, showcasing improved pricing power.
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The company is expanding its production capacity with the Jumbo Laminate project, expected to contribute an additional 2.8 million sheets annually.
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Rushil Decor Ltd (BOM:533470) has implemented currency hedging strategies to mitigate forex exposure, supporting stable margins.
Negative Points
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There was a 2.8% quarter-over-quarter decline in MDF segment volume, indicating some short-term challenges.
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The laminate segment saw a 2.9% year-over-year decline in total volume, reflecting a challenging market environment.
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The Jumbo Laminate project faced delays due to machinery supply issues and unexpected rainfall, impacting timelines.
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Timber prices have increased, which could pressure margins if not offset by price hikes.
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The company anticipates a planned maintenance shutdown for its CMDO unit, which may temporarily affect production.
Q & A Highlights
Q: Has there been a price hike in the MDF segment, and how has it affected realizations? A: Krupeshbhai, Managing Director, stated that there was no price hike in the last quarter for the domestic market, but export prices increased by INR 1,000 per CBM. The main growth in realization was due to 54% of the products being value-added, which improved the quarter-over-quarter realization.