Rushil Decor shares surge 6%; company aims at Rs 2,500 crore topline

Shares of Rushil Decor Ltd surged during the trading session on Wednesday. The stock gained over 6 per cent to Rs 364.25 on Wednesday, commanding a total market capitalization close to Rs 950 crore. It had settled at Rs 342.30 in the previous trading session.

Rusil Decor's net profit for the September 2023 quarter tumbled over 60 per cent on a year-on-year (YoY) basis to Rs 10.55 crore from Rs. 26.68 crore in September 2022 quarter. Revenue from operations of the company remained flat at Rs 204.61 crore in Q2FY24 from Rs. 203.39 crore in Q2FY23. EBITDA was also down 38 per cent YoY to Rs 29.47 crore for the period.

"The quarter's performance presented notable challenges, primarily attributed to prolonged monsoon, domestic competition and elevated imports. The MDF and Laminates segment has experienced a decline in realizations which has reasonably impacted our overall margins," said the company in the exchange filing.

In spite of the challenges at hand, we have observed robust enthusiasm and a notable surge in demand for our value-added and sustainable products, both in the domestic market and on the global front. Consequently, MDF and laminates segments have experienced an increase in volumes, said Krupesh Thakkar, Chairman & Managing Director at Rushil Décor.

"Looking at the next five years, by 2029, our ambitious goal is to achieve a threefold increase in our turnover to more than Rs 2,500 crore. This vision reflects our dedication to sustained growth and expansion. While we aim to capitalize on emerging opportunities, we aspire to uphold our debt-to-equity ratio within 1, ensuring a balanced and responsible financial structure," he added.

The company has scheduled its extra-ordinary general meeting (EGM) on Saturday, November 12, it informed in a separate exchange filing with the bourses.

Founded in 1993, Rushil Décor, is engaged in modern interior infrastructure, and eco-friendly, composite wood panels. The Ahmedabad-based Laminate and MDF panel boards industry player, has a global footprint in more than 50 countries under its flagship brand named VIR.

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