Rushil Decor Limited — Earnings Release 2024

May 9, 2024

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RUSHIL DECOR LI_MITED WE'LL MAKE IT

RDU017/2024-25 Date: 09.05.2024

To, National Stock Exchange of India Ltd. Exchange Plaza, Bandra - Kurla Complex, Bandra (E), Mumbai - 400 051 NSE EQUITY SYMBOL: RUSHIL

To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai- 400 001 SCRIP CODE: 533470

ISIN: INE573K01017

Dear Sir/Madam,

Sub: Press release

Please find enclosed herewith the Press Release of the Company in respect of Audited Financial Results of Rushil Decor Limited for the Fourth Quarter and Year ended March 31, 2024.

Please take the same into your records and do the needful.

Thanking you,

Yours faithfully,

For Rushil Decor Limited

HASMUKH Digitally signed by HASMUKH KANUBHAI KANUBHAI MODI Date: 2024.05.09 MODI 18:31:27 +05'30'

Hasmukh K. Modi Company Secretary

Encl.: a/a

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RUSHIL DECQR LTD., RUSHIL HOUSE, NEAR NEELKANTH GREEN BUNGALOW, OFF SINDHU BHAVAN ROAD, SHILAJ, AHMEDABAD -380058, GUJARAT, INDIA.

REGO. OFFICE: S. NO. 125, NEAR KALYANPURA PATIA, VILLAGE ITLA, GANDHINAGAR-MANSA ROAD,

TA. KALOL, DIST. GANDHINAGAR-382845, GUJARAT, INDIA. I CIN: L25209GJ1993PLC019532

PH: +91-79-61400400 I FAX: +91-79-61400401 I EMAIL: INFO@RUSHIL.COM I WWW.RUSHIL.COM

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Media Release

MDF Capacity Utilization levels reach 96% in March 24 Company Takes Export Price Hike in MDF by 7% from April 24, Eco-Friendly MDF & Laminates Volumes up by 14% and 7% YoY, Q4FY24 Revenues up 9% QoQ and YoY,

09[th] May 2024, AHMEDABAD: Rushil Décor Limited (BSE: 533470. NSE: RUSHIL), one of the leading suppliers of eco-friendly sustainable MDF, laminates, and plywood, has announced its audited financial results for the quarter ended 31[st] March, 2024.

Recent Developments:

• 1) Rushil Decor has formed a joint venture with Modala Ply Limited for plywood manufacturing in Chikmagalur. This strategic move establishes Rushil Decor as a comprehensive one-stop solution provider for a diverse range of wood panel products. RDL will have 51% in the subsidiary.

• 2) Company announces dividend of Re. 1 /- per share (10% of FV)

• 3) In Q4, the capacity utilization for MDF stood at 89%, whereas for the month of March 24, it stood at 96%. On the other hand, Laminate capacity utilization stood at 90% for Q4FY24. Our sales volume for MDF stood at 74,982 CBM (up by 14% YoY) & for Laminates it stood at 7.89 (up by 7% YoY) Lakh sheets in Q4’24.

• 4) 116% production capacity was sold during the quarter from our Chikmagalur plant, an increase of 36% YoY.

• 5) The value-added proportion of our eco-friendly MDF segment in Q4FY24 stands at 42% in quantity terms. We have consistently maintained our input-output ratio and, looking ahead to fiscal year 2025, we aim to increase the value-added proportion to 50% in Quantity with healthy margins.

• 6) During the quarter, 19,85,925 promoter shares that were pledged, were released.

Speaking on the Performance, Mr. Krupesh Thakkar, Chairman & Managing Director, Rushil Décor Limited said,

“The past year has witnessed significant advancements in our growth trajectory, instilling optimism for a strong performance in the forthcoming quarters. We are currently in an exciting expansion phase, with several upcoming projects poised to unlock their full potential and contribute to the overall industry landscape. Our vision extends far beyond mere market leadership; we aspire to be a catalyst for positive change, driving innovation, sustainability, and unparalleled customer satisfaction.

Underpinned by our forward-thinking approach, we have actively sought new avenues for sustained growth, embracing prudent decision-making while avoiding overleverage. This judicious approach has enabled us to chart a course of expansion while maintaining financial stability and operational efficiency.

Our Long-term goal of achieving INR 2,500 crore turnover serves as a driving force, propelling us to continuously push boundaries, explore new avenues, and unlock our full potential”.

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Financial Highlights for Q4FY24 (In Crore):

Particulars	Q4 FY24	Q3 FY24	Q4 FY23	Y-o-Y(%)
Sales Volume MDF(CBM)	74,982	65,896	66,179	13.30
Sales Volume Laminates(Sheets)	7,89,068	7,37,024	7,39,998	6.63
Revenue from Operations	233.42	213.11	213.90	9.12
EBITDA	29.23	30.65	28.20	3.63
EBITDA Margin	12.53%	14.38%	13.19%	-
PAT	9.00	11.36	13.60	-33.61
PAT Margin	3.86%	5.33%	6.34%	-
PAT(Without Provision)*	11.57	11.36	13.60	-14.92
PAT Margin*	4.96%	5.33%	6.34%	-

*Current tax in Quarter-4 and For the 12 months 2023-24 includes short provision of income tax of earlier year F.Y.2022-23 of INR 2.57 crore

Financial Highlights for 12 Months ended FY24 (In Crore):

Particulars	FY24	FY23
Sales Volume MDF(CBM)	2,60,380	2,36,579
Sales Volume Laminates(Sheets)	29,08,388	28,82,816
Revenue from Operations	843.96	838.40
EBITDA	119.91	149.39
EBITDA Margin	14.21%	17.82%
PAT	43.10	77.67
PAT Margin	5.09%	9.25%
_PAT(Without Provision)* _	45.67	77.67
PAT Margin*	5.41%	9.25%

*Current tax in Quarter-4 and For the 12 months 2023-24 includes short provision of income tax of earlier year F.Y.2022-23 of INR 2.57 crore

Mr. Rushil Thakkar, Executive Director, Rushil Décor Limited, stated, "During the first half of FY24, we encountered sluggish demand that posed challenges to our growth trajectory. However, the latter half witnessed a remarkable improvement, characterized by robust performance indicators. For the fiscal year, our revenues experienced a marginal year-on-year growth, while the quarter saw a substantial uptick, demonstrating an upward trend and acceleration in our business activities and revenue generation. These achievements reflect the hard work and dedication of our team across various departments, who have been instrumental in overcoming challenges and seizing opportunities, thus driving results for the company. The company's strategic initiatives have been focused on expanding its range of value-added products, enhancing capacity, extending distribution reach, and sharpening its export focus, all of which contributed to a satisfactory performance in FY24.

We are firmly positioned to capitalize on India's burgeoning building material segment growth due to buoyancy in real estate sector and the growing demand for quality interior infrastructure products. The MDF segment, in particular, is experiencing significant growth, expanding at a CAGR of 15-20% with the industry size now exceeding INR 7,000 crores. The MDF division achieved 89% utilization rate this quarter, with 42% of the products qualifying as value-added in terms of quantity.

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Looking ahead at our expansion plans, our greenfield laminates project is on the verge of completion and parts of machinery is being received. The global laminates market, which is projected to reach USD 11.98 billion by 2030, presents a significant opportunity that we aim to capitalize through this greenfield project.

For FY25, we anticipate revenues from this project to be in the range of INR 40-50 crores, increasing to INR 160-180 crores in FY26, supported by healthy margins. This growth is underpinned by the strong domestic market for laminates, which is estimated at INR 8000-10000 crores. Our robust volumes and utilization rates this quarter reflect the strong demand in our operational regions, which has also contributed to an improvement in our margins for laminates in Q4. With a CAPEX investment of INR 90 crores, we expect the payback period for this project to be around 5 years, demonstrating our commitment to leveraging this market expansion efficiently.

Our recent foray into the plywood market has significantly broadened our product portfolio, offering our distributors a more diverse range of products. With the launch of VIR Modala plywood, we've made these products available through our expansive distribution network, which includes over 5,000 dealers across India. Despite being new entrants in a plywood market valued at INR 40,000-50,000 crores, our extensive network positions us well to enhance our market penetration and reach. We plan to expand our manufacturing capacity in phases, aiming for 1000 boards per day by September 2024 and 3000 boards per day by September 2025. With an investment of INR 20-40 crores, we anticipate a payback period of approximately 5 years, underscoring our strategic commitment to this promising market expansion.

Having met our export obligations for the MDF segment, we now possess greater flexibility to selectively target regions that offer higher margins. Our strategy will continue to revolve around exploring new markets and deepening our penetration in existing ones, thereby expanding our market share and enhancing visibility. In fact, for April 2024, we have already increased our export prices by 7% across all orders.

In the initial quarters of the year, raw material prices showed an upward trend but stabilized towards the year's end. This rise in timber costs had an adverse effect on our margins. Moreover, increased spending on marketing and sales promotions also impacted our EBITDA, which decreased to 14% for FY24. However, we are aiming to not only increase our EBITDA margins to between 14-16% but also to sustain or even improve them further if market conditions continue to be favorable.

Our growth strategy for FY25 is centered around expanding our reach and enhancing our product offerings. We plan to deepen our penetration in untapped domestic markets while also exploring new international territories where demand for our innovative, high-quality interior infrastructure products is increasing. This approach is expected to open new avenues for revenue and ensure sustainable growth.

About Rushil Decor

Founded in 1993, Rushil Décor Limited is a globally leading company in modern interior infrastructure and eco-friendly, composite wood panels, committed to shaping a better planet. Leveraging modern technology, inspiring designs, and next-generation innovations, Rushil Décor is passionate about setting new industry standards and providing superior experiences, ensuring high productivity.

Rushil Décor operates five state-of-the-art manufacturing plants with an annual capacity of 3,30,000 CBM MDF and 3.49 million Laminates, catering to customers in more than 50 countries worldwide. The current portfolio is also extended to manufacturing of plywood from our Chikamaglur Plant in Bengaluru. The capacity in the first year would be 300 boards per day and gradually expanding to 3000 boards. In FY’24, the company achieved revenue of INR 844 crores, with EBIDTA and PAT of INR 120 crores and INR 43 crores, respectively. With a strong network of branches, distributors, and thousands of dealers, Rushil Décor is focused on redefining the future of wood. The company's product portfolio includes VIR Laminates, VIR MDF boards, VIR MAXPRO (HDFWR) boards, VIR Pre-laminated Decorative MDF/HDFWR boards, VIR Modala Ply, VIR PVC and VIR WPC boards/doors.

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What makes Rushil Décor special is its unmatched quality, design, customer-centricity, and value-led DIY green-engineered products from agroforestry. Driven by automated plants, world-class German technologies, and global standards, Rushil Décor relentlessly creates smarter spaces. Optimal supply chain efficiencies, resource utilization, and strategic local plantations offer a cost advantage in raw material sourcing and manufacturing excellence, enabling high output to meet global market demand.

For more details, please visit: www.rushil.com

For any Investor Relations query, please contact:

	Mr. Hiren Padhya Chief Financial Officer Rushil Décor Limited _Email: _hiren.padhya@rushil.com	Mr. Mehraj Dube / Mr. Nikunj Seth Het Choksey Advisors Tel - +91 9871472036 / +91 9773397958 _Email: ir-advisors@hetchoksey.com _

Caution Concerning Forward-Looking Statements:

This document includes certain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors. The Company is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.