Responsive Industries Limited · NSE:RESPONIND
Responsive Industries — Q2 FY2020 Earnings Presentation
32 slides from Responsive Industries's earnings presentation, October 2019
Slide 1: Investor Presentation Q2 FY2020
Investor Presentation Q2 FY2020
Slide 2: Disclaimer
Disclaimer Certain statements and opinions with respect to the anticipated future performance of Responsive Industries Limited (RIL) in the presentation (“forward-looking statements”), which reflect various assumptions concerning the strategies, objectives Commercial and anticipated results may or m
Slide 3: Management Quote
Management Quote Responsive posted steady sales growth for the second consecutive quarter, demonstrating the continuing effectiveness of the variousCommercial new product Viability Checkwe have initiatives been implementing over the last year. It also reflects a conscious decision by the Group to be
Slide 4: Financial Results
Financial Results Q2FY20 (Standalone) REVENUE EBITDA PBT PAT 124 1.17% 31 17.8% 17 43.7% 19 168.1% Q2FY20 (Consolidated) REVENUE EBITDA PBT PAT 151 3.4% 32 16.7% 16 98.9% 18 328.5% Amount in Rs. Cr
Slide 5: Company Overview
Company Overview
Slide 6: Company Highlights
Company Highlights 30 years of Experience Reach in 70 countries worldwide Strong relationship with 500+ ZERO long term debt. Architects & Designer 500+ SKUs INR 2458 Cr. market capitalization* Amongst top 4 producers of vinyl flooring globally 5000+ projects completed *As on October 22, 2019
Slide 7: Business Strategy
Business Strategy We have been evolving since 2017… Out-performance Phase 1 Transition from low margin products to High margin Accelerated Growth products Phase 2 Optimization 2022 onwards Innovate & Disrupt the markets with the revolutionary product - IMPACT Strategic decisions 2019-2021 Phase 3 Sa
Slide 8: What's new?
What’s new ? Transition to High Value-added Products Changing product mix to increase profitability International Expansion Setting up overseas facility in UAE Signed up with new international distributors to ramp up volumes of High-value margin product Setting up global sales Team New Produ
Slide 9: Recent Projects
Recent Projects Coffee Shop: Taj Mahal, Mindshare office: JW Westin, Mina Sehayi Lucknow Marriott, Sahar Mumbai Dubai Product: Resonate Product: IMPACT Tranquil Product: IMPACT Tranquil Color: TRQ-06 Driftwood Grey Color: TRQ-07, Smoke Granite Color: TRQ-11, Silvery Shale
Slide 10: Why Responsive?
Why Responsive ? Investment Rationale Tapping into large 500+ SKUs Large distribution market opportunity network US$ 807 mn Indian vinyl Wide range of Product 100+ domestic flooring Market portfolio distributor and growing State of the art Strong R&D First-Mover manufacturing facility capabilities Ad
Slide 11: Why Responsive? Make In India
Why Responsive ? Make In India The government of India has taken strides to encourage manufacturing and not only protect, but also advance the interests of domestic manufacturers VINYL FLOORING: A key manufacturing sector in INDIA As per the budget announced on July 5, 2019, Vinyl flooring has been
Slide 12: Business Structure
Business Structure Synthetic Axiom Cordages Flooring Leather Limited Vinyl Impact Luxury General Transport Flooring Vinyl Tile Contract Sheet Semi-contract Transport Dry-Back SPC ✓ Largest Indian producer of PVC flooring and synthetic leather cloth ✓ Presence in shipping ropes business through its s
Slide 13: Vinyl Flooring
Vinyl Flooring
Slide 14: Industry Overview
Industry Overview Global Flooring Market Global Flooring Market Value Global Vinyl Flooring Global Vinyl Flooring Value (USD bn) (USD bn) Market Volume (mn sqm) Market Value (USD bn) 430 17.5 1441 13.8 275 67 11.9 1060 177 751 38 19 2011 2018 2024 2011 2018 2024 2011 2018 2024 2011 2018 2024 Vinyl F
Slide 15: Vinyl Flooring Product
Product Contract Sheet Vinyl o Healthcare Capacity o Education o Industry o Hospitality 01 5000 MTPM o Sports o Heavy Traffic VINYL FLOORING Semi-Contract Vinyl Variety o Residential o Retail 02 o Medium Traffic o Offices 30+ ranges commercial Transport Sheet Vinyl 03 SKU o Indian o Global Railways
Slide 16: Luxury Vinyl Tile
Luxury Vinyl Tile
Slide 17: Key features
Key features IMPACT LVT and SPC were launched in 2019 Easy Installation : Instant DROP-CLICK Installation Replacement potential : Carpet Tiles, wooden flooring, engineered wood, laminates, vitrified tiles, ceramic tiles S ourc e: Industry sourc es
Slide 18: Our Breakthrough Product
Our Breakthrough Product Market Opportunity Retail Target to place across 2500 stores in next 5 Total market opportunity of USD 7 billion years Growth Institutional Fastest growing flooring sub-segment with Hotel Chains, Builders & Organized Retail 15% CAGR Durability Projects High life of 10+ years
Slide 19: IMPACT – Disruptive force in Indian LVT segment
IMPACT – Disruptive force in Indian LVT segment Global LVT Sales Forecast India LVT Sales Forecast 7 6.4 450 403.2 Million Sq. Meters 6 Million Sq. Meters 4.8 350 5 4 237.7 250 3 2 150 1 0 50 2019 2024 2019 2024 • The global LVT market is expected to grow at 11.1% • Responsive Industries has pioneer
Slide 20: Synthetic Leather
Synthetic Leather
Slide 21: Industry Overview
Industry Overview Global Synthetic Leather Market (USD bn) Macro Economic & Aesthetic Factors 56 37 Increasing consumer discretionary spending Strong growth in End-use industries like 2017 2027 automotive, footwear The organized sector in India accounts for High gloss finish, durable, UV resis
Slide 22: Leather Product
Product Upholstery Fabrics High Shear Strength o Chairs & Sofas o Furniture 01 Gu aran t e ed sh e e r p erf o rman c e for 1 0 y ear s fo r o Surface interiors valu e ad d ed fab rics Transport Leather LEATHER Tailor-made o Indian railways o Metros, trams and 02 Tailor -mad e tech n ical sp ecs as
Slide 23: Strengths
Strengths
Slide 24: Distribution Strength
Distribution Strength Expanding worldwide product development and distribution in different regions Major supplier of Upto Indian Railways 500 75+ Domestic Active Retail Distributor 1000+ domestic partnerships projects completed planned Supplying to 30+ Network automobile industry across 70 Distribu
Slide 25: Marquee client base and certifications
Marquee client base… Healthcare Sports Education Safety & Transport Corporates Hospitality Unique product features helps cater to varied requirements of marquee customers across multiple industries …along with certifications 9001 14001 18001
Slide 26: Infrastructure
Infrastructure State-of-the-art manufacturing facility R&D Initiatives Proximity to Ports and Commercial Viability Check National Highways Customer Requirements Commercial Viability Check Synthetic Fully backward Integrated Leather : 2,000 Technical study of product Mtpm Facility Technical Viability
Slide 27: Quarter Highlights & Financial Information
Quarter Highlights & Financial Information
Slide 28: Financial Overview (Consolidated)
Financial Overview Consolidated Revenue and EBIDTA Margin PAT and PAT Margin 7.6% 29.46 2249 20.2% 22.66 2055 14.9% 19.22 Commercial Viability Check 1264 9.2% 7.8% 775 10.68 10.77 Customer Requirements 298 0.9% 0.9% 1.1% 8.8% 0.5% Technical Viability Check FY16 FY17 FY18 FY19 H1FY20 FY16 FY17 Techni
Slide 29: Financial Overview (Standalone)
Financial Overview Standalone Revenue and EBIDTA Margin PAT and PAT Margin 10.8% 1837 1865 23.8% 28.42 26.72 1098 16.9% 19.39 Commercial Viability Check 17.92 9.2% 7.2% 8.5% 629 13.08 Customer Requirements 247 4.5% 1.0% 1.0% 1.2% Technical Viability Check FY16 FY17 FY18 FY19 H1FY20 FY16 FY17 Technic
Slide 30: Quarterly Performance
Quarterly Performance Consolidated Standalone Particulars Q-o-Q Q-o-Q Q2FY20 Q1FY20 Q2FY20 Q1FY20 % Change % Change Net Sales (Rs. cr) 151.47 146.44 3.43% 124.21 122.76 1.17% EBITDA (Rs. cr) 32.47 27.82 16.70% 31.82 27.01 17.79% EBITDA Margins (%) 21.44 19.00 244bps 25.62 22.00 362bps PAT (Rs. cr) 1
Slide 31: Stock Information
Stock Information Shareholding Pattern (as on September 30, 2019) Stock Data - BSE (as on October 22, 2019) Stock code RESPONIND 3.98% 4.22% Stock Price INR 92.10 41.67% 52 Week High/Low Commercial Viability Check 73.00 INR 104.85/ Market Capitalization INR 2,458.27 Crores 50.13% Index S&P BSE SMALL
Slide 32: Thank You
Contact us: Snighter Albuquerque/Sanjay Punjabi/Chintan Kotak Sandhya Dubey THANK YOU Adfactors PR Investor Relations Investor Relations 9819123804/ 9821080048/ 9920865113 022 6656 2704 [email protected]/ [email protected] [email protected] Chintan.kotak@adfactor
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