Rushil Decor shares surged 6.5% to ₹29.17 after releasing Q3 results, despite modest growth. The company is expanding its market reach, including new laminates and plywood ventures.
Rushil Decor Ltd, an Indian company specializing in eco-friendly, sustainable MDF boards, laminates, and plywood, witnessed a 6.5% surge in its stock price to ₹29.17 on January 29, 2025, marking the end of a seven-day losing streak. The jump came after the company announced its December quarter results for FY25, showcasing modest growth despite some challenges. Rushil Decor is actively expanding its manufacturing capacity and market reach, including a new laminates project and its entry into the plywood sector.
Q3 FY25 Financial Performance
Rushil Decor reported a revenue of ₹211 crore for Q3 FY25, reflecting a slight year-on-year (YoY) decline of 0.7% and a quarter-on-quarter (QoQ) drop of 8.1%. However, the company posted a slight increase in profit after tax (PAT) to ₹11.5 crore, a 1% growth from the ₹11.4 crore registered during the same period in the previous year.
A major contributor to the company’s growth was the export performance in both the MDF and laminates segments. Rushil Decor’s MDF division, which accounts for 73% of total revenue, recorded a revenue of ₹154 crore, compared to ₹158 crore in Q3 FY24. Exports of MDF saw a 38.2% increase in volume, reaching 21,372 CBM, while the domestic market volume declined by 13.9% to 43,428 CBM.
In the laminates segment, the export market also showed positive growth, with a 13.8% increase in volume, reaching 513,239 sheets. However, price realizations in both the domestic and export markets faced a decline, with the Indian laminates market volume dropping 10.8%. Overall capacity utilization in the laminates division stood at 83% in Q3.
Expansion and Diversification Plans
Rushil Decor is continuing its expansion efforts, focusing on increasing its market presence and manufacturing capabilities. The company currently has an annual MDF manufacturing capacity of 330,000 CBM and a laminate production capacity of 3.49 million sheets.
As part of its growth strategy, Rushil Decor is establishing a new laminates project in Gandhinagar, Gujarat, dedicated to jumbo-sized laminates. This new project will have an annual capacity of 2.80 million sheets. Additionally, the company is entering the plywood market through a joint venture in Chikmagalur, Karnataka, with a production capacity of 300 boards per day.
India remains one of the world’s top producers of laminates, and Rushil Decor’s move into jumbo-sized laminates is expected to strengthen its position in international markets, including Europe, the USA, and Australia. The company is also expanding its global footprint by increasing the presence of its Vir brand across more than 56 countries.
Stock Performance and Investor Sentiment
Following the release of its Q3 earnings report and the announcement of its expansion plans, Rushil Decor’s stock price climbed by 6.5% on January 29, 2025. Analysts have shown optimism, driven by the company’s growth trajectory and continued investment in expanding its product range and market reach.
Rushil Decor’s efforts to diversify its offerings, boost capacity, and strengthen its international presence reflect a solid strategy aimed at maintaining long-term growth and profitability in a competitive market.
