Responsive Industries Limited Q3FY20 Results
PAT increased by 92.7% to Rs 6.0 crore EBITDA Margin improved significantly to 26.4% led by increase in share of high margin & high value added products
Mumbai, Feb 15, 2020: Responsive Industries Ltd., a leading Vinyl Flooring and Synthetic Leather manufacturer, has declared its financial results for the quarter ending Dec, 2019.
Consolidated Results - Q3 FY20
• Revenue from operations was at Rs 124.1 crore • EBITDA was at Rs 26.9 crore as against Rs 26.8 crore in Q3FY19
• The EBIDTA Margin scaled up to 26.4% from 19.0% in Q3FY19 • Profit before Tax almost doubled to Rs 6.0 crore (+92.7% growth)
Although Coronavirus in China is a sad development and we pray for a speedy recovery; we are seeing a surge of global interest in our "IMPACT" range. The view from the buyer's perspective is to diversify their sourcing from China to India. We believe this disruption will help see a significant boost in export revenue in the coming quarters.
Interlocking vinyl tiles or SPC is the fastest growing flooring segment globally and is estimated to grown the vinyl flooring category from $25 billion in 2020 to $45 billion by 2025. The reason for the tremendous growth is the fast replacement of carpet, laminated and engineered wood is due to ease of installation, ease of maintenance, higher durability and better aesthetics.
With 30 years of manufacturing experience and a timely launched brand in "IMPACT", Responsive Industries is well positioned to capitalize on the growing global demand. We already boast exports to 65 countries globally and have a vast distributor network and are in a great position to become the leading Indian supplier for global demand. In the third quarter alone, we have added 20 new export relationships for "IMPACT" and expect to add more key customers in 2020.
Responsive Industries has focused its strategy on growing the market for interlocking vinyl tiles through the aggressive promotion of the "IMPACT" brand in both the domestic and export market. We are seeing fast adoption of the new age technology and expect robust export demand coupled with recovering domestic consumption to catapult growth.
Rishabh Agarwal, Non-executive Chairman, Responsive Industries Ltd said: "Responsive continues to remain cash positive and we are proud of the shift made towards the high-margin business. We are seeing track record of 20% or higher EBIDTA for the last 3 quarters and we expect to keep up the margin profile going forward. We also now expect sales revenue to start improving with revival of both export and domestic demand.”
About Responsive Industries Limited (Responsive)
Responsive is a leading global manufacturer of vinyl flooring, luxury vinyl tiles & synthetic leather. The Company is among the leading four producers of vinyl flooring internationally and the largest Indian producer of PVC flooring and synthetic leather cloth. The Company serves multiple industries like healthcare, hospitality, transportation, IT and telecom, retail, education, sports, infrastructure and real estate. The Company exports the products to over 70 countries across the globe and has a wide network of over 300 active distributors spread across India.
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