RESPONIND - Responsive Ind

📊 NSE: RESPONIND 🏢 Plastics Products 📅 Last Updated: 12/14/2025 11:50

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations decreased by 15.15% YoY, falling from INR 654.95 Cr in FY24 to INR 555.74 Cr in FY25. Local sales grew by 15.09% to INR 309.06 Cr, while Export sales saw a significant decline of 36.16% to INR 246.68 Cr.

Geographic Revenue Split

Domestic (India) revenue contribution increased to 55.6% (INR 309.06 Cr) in FY25 from 41% in FY24. Export revenue contribution decreased to 44.4% (INR 246.68 Cr) in FY25 from 59% in FY24, primarily due to global demand shifts and logistics costs.

Profitability Margins

Operating Profit Margin for FY25 stood at 16.48%, a decrease of 8.12% from 17.94% in FY24. Net Profit Margin was 14.02% in FY25 compared to 14.84% in FY24. Return on Net Worth improved slightly to 14.78% in FY25 from 14.18% in FY24.

EBITDA Margin

Consolidated EBITDA margin showed a massive improvement YoY, rising from 11.30% in FY23 to 22.34% in FY24. This was driven by a shift toward high-value products like SPC and LVP, which command higher margins.

Capital Expenditure

The company moved towards positive Free Cash Flow of INR 35 Cr in FY24, compared to zero in FY23, after accounting for acquisition of fixed assets and capital work-in-progress. Historical net worth grew from INR 972 Cr in FY23 to INR 1,137 Cr in FY24.

Credit Rating & Borrowing

The company holds a credit rating of IVR A- (Stable) for long-term facilities and IVR A2+ for short-term facilities. Interest coverage ratio was 9.76x in FY25, slightly down from 10.1x in FY24, indicating strong debt-servicing capability despite a 3.43% performance decline.

⚙️ Operational Drivers

Raw Materials

The primary raw material is PVC (Poly Vinyl Chloride) resin. Other critical inputs include additives for SPC (Stone Plastic Composite) and LVP (Luxury Vinyl Plank) production, as well as materials for the shipping ropes division (Axiom Cordages).

Import Sources

Not explicitly detailed by country in the documents, though the company monitors global commodity prices and maintains a risk mitigation plan for price volatility in international markets.

Capacity Expansion

The company operates a 52-acre state-of-the-art factory in Boisar, Palghar, with 15 manufacturing lines. Current capacity utilization is approximately 50%, with plans to improve utilization levels in the coming years to enhance return ratios.

Raw Material Costs

Raw material and freight costs were cited as the primary reasons for EBITDA margin volatility, causing a drop from 16.87% in FY21 to 10.16% in FY22. The company manages this by establishing clear pricing terms with suppliers and tracking market price changes.

Manufacturing Efficiency

Manufacturing efficiency is being targeted through a shift toward high-value-added products (SPC/LVP) and increasing the utilization of the existing 15 production lines from the current 50% level.

Logistics & Distribution

The company is establishing a robust B2C distribution network in India to increase domestic market penetration. Export logistics are managed through strategic marketing networks globally.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be achieved by capturing 3% of the USD 7.2 Bn USA market for LVP and SPC by FY27, representing a USD 220 Mn opportunity. The strategy involves prioritizing high-margin products, expanding export efforts in the USA, and leveraging the 'China Plus 1' global sourcing shift.

Products & Services

The company sells PVC flooring, Stone Plastic Composite (SPC) flooring, Luxury Vinyl Plank (LVP) flooring, and synthetic shipping ropes.

Brand Portfolio

Responsive Industries (RIL) and Axiom Cordages.

New Products/Services

Focus is shifting heavily toward SPC and LVP flooring, which are expected to sustain EBITDA margins above 20% due to their high-value-added nature.

Market Expansion

Targeting the USA market for flooring products and expanding the domestic B2C brand presence in India through an enhanced distribution network.

Market Share & Ranking

The company aims to capture 3% of the projected USD 7.2 Bn USA market for LVP/SPC by FY27.

Strategic Alliances

The company operates through wholly-owned subsidiaries in Hong Kong, Singapore, and the USA (Responsive Industries Limited LLC) to facilitate global trade and operationalize overseas units.

🌍 External Factors

Industry Trends

The industry is shifting toward high-value-added flooring (SPC/LVP). The USA market is projected to reach USD 7.2 Bn by FY27, growing as consumers move away from traditional flooring to more durable, synthetic options.

Competitive Landscape

Competes in the global PVC flooring and shipping ropes market. Key advantages include lower debt-to-equity (0.18x) and a strong balance sheet compared to smaller peers.

Competitive Moat

Moat is built on a 52-acre integrated manufacturing setup, 40 years of promoter experience, and a well-diversified product portfolio that allows for flexible shifting between domestic and export markets.

Macro Economic Sensitivity

Highly sensitive to global demand-supply conditions and finished goods pricing. The company benefits from anti-dumping duties and export bans affecting competitors.

Consumer Behavior

Increasing consumer preference for value-added, durable flooring products like SPC and LVP in both residential and commercial sectors.

Geopolitical Risks

The 'China Plus 1' strategy and anti-dumping duties are viewed as favorable geopolitical tailwinds that drive demand toward Indian manufacturers like Responsive.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to global trade regulations, including anti-dumping duties and export-import policies that affect the PVC and shipping rope industries.

Taxation Policy Impact

The company follows standard Indian Accounting Standards. Tax as a percentage of profit was 24% in FY22 and 29% in FY21 on a standalone basis.

Legal Contingencies

The company responded to NSE queries regarding volume movement in November 2025, affirming compliance with SEBI LODR regulations and stating no undisclosed price-sensitive information exists.

⚠️ Risk Analysis

Key Uncertainties

Primary risks include volatility in raw material prices and freight costs, which can impact EBITDA margins by 5-8%. Global demand fluctuations also pose a risk to the export-heavy revenue mix.