EFC India Eyeing Rs 300-Crore Topline From New Furniture Business, Says Director Nikhil Bhuta

EFC India Ltd. is confident of achieving a top line of up to Rs 300 crore from its newly-added furniture manufacturing business once it achieves full potential, Director Nikhil Bhuta said.

He added that in the remaining part of the financial year 2024–25, the new unit will be able to generate a turnover of over Rs 75 crore.

Earlier this month, EFC India's subsidiary Ek Design began commercial furniture production at its manufacturing unit in Pune.

“In terms of revenue, with the present capacity that we have installed, we will be able to achieve anything around Rs 300 crore-plus at an optimal capacity on a single shift basis,” Bhuta told NDTV Profit.

The new business will see an Ebitda margin of 40% in the upcoming years, at par with the average furniture manufacturing sector margins, Bhuta noted.

“In the first year of operation, we might not be able to achieve optimal efficiency, and that's why probably our margin may remain around 30–35%. But going forward, when we achieve the Rs 300 crore top line, at that time, we will be in a position of achieving a margin of around 40%,” the top executive noted.

EFC India has three divisions—managed office business, design and build, and furniture manufacturing business.

“All put together, our blended Ebitda margin would remain around 30% plus. In about three years, we aim to achieve a revenue equilibrium for all the three divisions, where all of them will be contributing equally,” Bhuta said.

On overall projections for the fiscal 2024–25, Bhuta said that EFC India was on track to double its top line from the Rs 400 crore that it had achieved in the previous financial year.

“With the contributions coming in from all the three divisions, our target to achieve double the target from last year looks achievable, and we are almost on track,” Bhuta noted.

Shares of EFC India ended the day's trade at Rs 465 apiece, down by 2.43% on the BSE on Friday. Intraday, the stock had slipped over 3.4% to touch a low of Rs 460 apiece.