Hopeful of nod for plywood & veneer arm in Laos: Rushil Decor

In an interview to CNBC-TV18, Krupesh Thakkar of MD, Rushil Decor spoke about the results and his outlook for the company.He said growth is very good and the company is operating at 90 percent capacity utilisation in the quarter gone by.Earlier, the Laos government had declined Rushil Decor's application to set up a plywood and veneer subsidiary. The company has reapplied for the same and is hopeful of getting the approval this time.Below is the verbatim transcript of Krupesh Thakkar's interview to Reema Tendulkar & Nigel D'Souza on CNBC-TV18.Nigel: Topline growth of 5 percent of thereabouts. Could you give us a couple of details? Was there any volume growth on the topline. If yes, how much was it. What is the capacity utilisation as we speak and margin outlook going ahead?A: Our growth is good and we are achieving 90 percent production capacity right now in the last quarter and our topline is around 5 percent higher than the previous quarter and bottomline is 77 percent higher than the previous quarter. So growth is very good.Reema: Could you breakup your revenue growth of 5 percent in terms of pricing as well as volumes?A: Raw material price decreased significantly and that is why we have to reduce some prices and bottomline is fantastic than previous quarter.Reema: How much did you reduce your pricing by of products?A: It is around 5 percent.Nigel: On the topline, as you have been saying, your revenues have grown by 5 percent, which is very good as you have been saying. Unfortunately you said that there were some price cuts. So we wanted to know a couple of details. Was there any price cut. Could you tell us how much did you cut prices by, 2-3 percent, and volume growth was there, so how much did the volumes grow up by. Did they grow up by more than 7-8 percent?A: Yes, volumes grow by 10 percent and we had to reduce price due to raw material price decrease. We decreased price by 5 percent but the bottomline is very good.Reema: What has helped the bottomline is a reduction in your finance cost as well marginally. Give us an update on debt. What led to the decline in finance cost and what would be the interest payout run rate for the coming quarters?A: We are reducing our financial cost by paying regular instalments to banks. However, right now debt to equity ratio is around 0.97 percent compared to previous quarter is 1.1.

Nigel: As you were saying that your bottomline has gone up phenomenally, things are looking good, Rs 4.5 crore is what you have done for Q1? For the year can we see Rs 14-15 crore, if we go at the same run rate? Do you think we can do a number like that because last full year you did Rs 7.5 crore. This year you have started with a superb start.

A: We are trying to achieve products and capacity by 100 percent, so bottomline will be increased in the end of the year and we are trying to achieve bottomline and topline as good as possible.

Reema: You have once again made an application to the Loas government to carry a sanding, lamination and polishing subsidiary. We understand that you have made a similar application in the past which has rejected by the government. Could you give us an update on your fresh application? When are you likely to hear from them? Is it going to be favourable?