Responsive Industries Ltd updates on business operations

Responsive Industries Ltd. (Responsive), the nation's leading Vinyl Flooring and Synthetic Leather manufacturer reported INR 434 Cr. in Revenue from Operations for the year ended March 31, 2020 and INR 26.87 Cr. for the current financial year, and the EBITDA stood at INR 105 Cr.

Due to COVID-19 pandemic health crisis governments were forced to enforce lock-downs of all economic activity and the impact has been felt across all sectors, especially building materials and activities related to construction.

The disruption from COVID-19 has revealed some big opportunities for the Company from the disruption of traditional supply chains. With the renewed focus of "Made in India" products through the Atmanirbhar Bharat schemes, Responsive is poised to make strong gains in the domestic market in public sector contracts. In addition, the geopolitical realignment of India away from Chinese supply chain is an additional opportunity as most of the imported luxury vinyl tiles in India are of Chinese origin. This reality renews the spotlight on Responsive as the only viable domestic manufacturer of both vinyl flooring and luxury vinyl tiles.

Another opportunity that has emerged is the disruption of the US-China supply chain and the need for major US importers to find alternatives. Combine this fact with the growing Indo-US cooperation, Responsive has seen an extremely keen interest from US supply chain to source from India.

In addition, Responsive Industries has successfully completed major projects in health sector especially urgent Covid 19 isolation facilities. We have supplied our specialized anti-bacterial vinyl flooring for the 10,000 bed facility to Radhya Swami Satsang , New Delhi, one of the largest Covid 19 isolation facility in India. In addition, we have supplied vinyl flooring to NESCO, MMRDA and WIPRO facilities in Mumbai and Pune. We are also proud of the Indian Railways to facilitate converting railways coaches to Covid isolation centers where again our vinyl flooring was used.

Therefore, despite the short-term challenges of COVID-19, the Company has extremely strong growth prospects and looks to emerge stronger from the crisis.

Financial Update:

Consolidated Results - FY20

- Responsive reported consolidated revenue of INR 533 crore in this financial year
- The Core EBIDTA Margin stood at 24% at INR 126 crore
- The Company reported Profit before Tax of INR 26.50 crore and Profit after Tax of INR 24 crore
- The EPS of the company is INR 0.92 for the year

Standalone Results - FY20

- Responsive reported revenue of INR 434 crore in this financial year.
- The Core EBIDTA Margin stood at 24% at INR 105 crore.
- The Company reported Profit before Tax of INR 26.87 crore and Profit after Tax of INR 24.72 crore.
- The EPS of the company is INR 0.93 for the year

Shares of RESPONSIVE INDUSTRIES LTD. was last trading in BSE at Rs.96 as compared to the previous close of Rs. 92.4. The total number of shares traded during the day was 264727 in over 980 trades.

The stock hit an intraday high of Rs. 96 and intraday low of 91.75. The net turnover during the day was Rs. 24605768.

Source : Equity Bulls

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