After a relatively stronger growth in 2018 there were predictions of 2019 faringbetter economically. However surrounded by rising uncertainties the global growth ratefor the FY 2019-20 recorded a downward slide. Just when the year was nearing a close theoutbreak of Covid-19 pandemic sent shock waves across the globe. With a public healthcrisis taking over the world all the social economic and financial structures across theglobe were disrupted. Lockdown across economies to mitigate the spread of the virusbrought all business activities to a screeching halt severely damaging the globaleconomy.
The FY 2019-20 proved to be challenging especially in the second half of the yearowing to factors like overall slowdown in the economy weak rural growth and the Covid-19pandemic that severely affected trade and commerce everywhere India being no exception.The series of fiscal stimulus measures taken by the Government and Central Bank will aidthe Indian economy to grow at a healthy pace. Even though the external environmentimpacted our growth but we drew upon our advantages and maintained our market sharesacross all our brands. Also we prioritised safety and well-being of employees ensuringbusiness continuity while adhering to all the relevant Government guidelines.
India drives demand as the 3rd largest consumer market globally. The country'sfurniture market size was USD 21 bn in 2018 and is anticipated to reach over USD 31 bn by2024 (Source: TechSci Research Report). The growth as projected will be riding the backof level-playing field for the sector as the exemption limit is restricted to Rs 20 lakhsa move from unorganised sector to organised sector. Further the demand for plywood MDFboards and laminates is likely to remain strong with the Government's push oninfrastructure and low-cost housing will augur well for the industry. The Government havealso initiated anti-dumping duty on MDF imports and raised the customs duty on furnitureimports.
However post-Covid-19 the trend is more likely to move towards ready-made furniture aspeople will not prefer calling carpenters at home. The Indian Work From Home (WFH)furniture market is projected to grow from an estimated USD 2.22 bn in FY2020-21 to USD3.49 bn by FY2025-26 (Source: Businesswire). The growth will be majorly driven by risingnumber of companies providing an option of doing WFH to their employees coupled withgrowing number of IT companies adopting cloud-based solutions. Besides consumerpreference for superior quality products increasing urban population growing internetconnectivity and rising disposable income are few other factors that are positivelyinfluencing the market. Also with millennials turning into the decision-makers andconsumers the demand for modular and elegant furniture is witnessing a phenomenal growth.People are increasingly and willingly spending more on experience customized productsand time-saving services.
Backed by sound performance across all our segments we continued growing consistentlyand profitably during the year 2019-20. The right execution of our strategy supported bythe effort and collaboration of our associates helped us accomplish favourable results.This motivated us further to focus on the future of our business.
Overall Business Performance
Our strategies and steady performance help us grab opportunities the progress of whichis reflected in our results. During the year 2019-20 the Company's performance wasstable. The total revenue marginally decreased by 3% from Rs 352.23 Cr in 2018-19 to Rs339.13 Cr in 2019-20. While EBIDTA registered a growth of 11.59% from Rs 45.14 Cr in018-19 to Rs 40.45 Cr in 2019-20 and EBIDTA Margin stood at 11.93 %. PAT witnessed growthof 60% from Rs 14.33 Cr in 2018-19 to Rs 23.05 Cr in 2019-20 driven by tax benefit whilePAT Margin stood at 6.80%.
Our stable performance along with financial discipline is what determines the path ofour success. It motivates us to excel at every stage. It drives us to constantly earn theconfidence of the shareholders and pay them back through dividends which for 2019-20 wasRs 0.50 per share.
Corporate Social Responsibility
I want to reiterate that we care deeply for our people and the communities in which weoperate. CSR has been a longstanding commitment at RDL and forms crucial part of theCompany's activities. Our objective is to proactively support meaningful socio-economicdevelopment. Our key focus area for CSR activities include education health animalwelfare rural development projects and eradication of poverty & hunger among others.
A high degree of organisational agility brilliance customer centricity and effectivecost are some of the key indicators of success. But to drive business growth in asustainable manner the role of people is above everything else. Our employees' engagementand their dedication in achieving our goals is deeply valued. We sincerely appreciatetheir undeterred hard work and contributions that ensure our growth and success. 4
Going Forward - Our Strategy
Our 4F' strategy forms the foundation of business. It is built around the fourpillars of organic growth operational improvement strong financial position andinnovative products. During the year we continued moving ahead with the 4F'strategy in mind. The focus is to further penetrate the existing markets through multiplechannels. Multi-segment and multi-channel presence have played a pivotal role in helpingus capture larger market share in South India. We are diversifying our geographicalpresence by expanding into the Eastern markets. Moreover we will continue offeringeco-friendly products through responsible sourcing of wood. Our previous year's effortstowards expanding our services improving customer focus and increasing productivity havehelped us create a stronger and more resilient company.
We remain committed to full compliance with the highest ethical and legal standards.Our efforts are constantly guided towards generating value and certainty for all ourstakeholders. I sincerely appreciate our associates for the magnificent work they havedone. I also wish to thank our strategic partners for their essential support ourshareholders and customers for their constant loyalty and confidence. Together we canachieve the best of standards and our collective efforts allow us to remain steady even insuch turbulent times.