Textiles company RSWM announced Q1FY25 results: Total sales recorded at Rs 1,208 crore during Q1FY25, up by 3.1% (QoQ) & 34.1% (YoY). Gross Profit for Q1FY25 quarter amounted to Rs 434 crore, up by 7.8% (QoQ) & 29.2% (YoY). For the quarter, the Gross Profit Margin stood at 35.9%, up by +155 bps on a QoQ basis. EBIDTA for Q1FY25 stands at Rs 54 crore, increased by 2.2x on a YoY basis with an EBIDTA margin of 4.4% which is +169 bps upward on a YoY basis. Commenting on the results, Riju Jhunjhunwala, CMD & CEO of RSWM said, “The textile industry is on a path to recovery with moderate improvement in demand domestically and in export markets. Despite challenges from global supply chain disruptions and rising logistics costs, shifts in sourcing preferences have helped stabilize Indian cotton prices between Rs 55k to Rs 60k per candy, supporting our margins. International cotton prices have declined by 10%-12%, making imported cotton more competitive, yet stable crop conditions and a good monsoon are expected to maintain stability. We anticipate improved industry utilization rates as demand picks up. Our performance in Q1FY25 remained stable due to better asset utilization and cost efficiency. Despite geopolitical challenges, realizations across business segments have improved, indicating a positive financial trend. Looking ahead, we will focus on optimizing product mixes, cost efficiencies, and capacity utilization to enhance our market position. Strategic investments in renewable energy and a commitment to innovation and value additions will drive our long-term growth. The Union Budget 2024-25, with its increased funding for the textile sector, will further support our initiatives and growth." Result PDF
Textiles company RSWM announced Q3FY24 & 9MFY24 results: Q3FY24 Financial Performance: Sales: RSWM reported total sales of Rs 977 crore in Q3FY24, marking a significant increase of 14.3% from Q3FY23. Gross Profit (GP): The gross profit for Q3FY24 stood at Rs 346 crore, up by 10.8% year-over-year. GP Margin: The Gross Profit Margin saw a slight decrease, down to 35.4% in Q3FY24 from 36.5% in Q3FY23, a change of 111 basis points. EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) was reported at Rs 22 crore in Q3FY24 with an EBITDA margin of 2.3%. PAT: The Profit After Tax (PAT) experienced a downturn, with a reported number of (Rs 32 crore) for Q3FY24. 9MFY24 Financial Performance: Sales: Net sales reached Rs 2,886 crore Gross Profit: The GP was Rs 1,045 crore with a Gross Profit Margin of 36.2%. EBITDA: For 9MFY24, EBITDA stood at Rs 77 crore with an EBITDA margin of 2.7%. PAT: PAT for 9MFY24 was reported as (Rs 65 crore). Commenting on the results, Riju Jhunjhunwala, Chairman & Managing Director and CEO of RSWM said, “Our recent performance demonstrates promising signs of improvement, with notable YoY revenue growth in Q3 & 9M FY24. Nevertheless, challenges persist, particularly in demand both domestically and in export markets due to pricing pressures and economic slowdowns. Key markets like the US and UK have experienced significant declines. Looking ahead to FY25, optimism arises from the trend of diversification from China and new orders in Western markets. About acquisition of Spinning, Knitting and Processing Undertaking of Ginni Filaments Limited: During the quarter, RSWM Limited is pleased to announce a significant move in the textile industry with its proposed acquisition of Spinning, Knitting and Processing units of Ginni Filaments Limited. Going beyond Rajasthan, this expansion foresees a substantial increase in turnover. Targeting new customers globally, RSWM Limited aims to strengthen its position in spinning and knitted fabric sector. With a strategic investment in upgrading acquired assets, RSWM Limited focuses on operational efficiency and eco-friendly practices. This move enhances financial stability and anticipates improved earnings. RSWM Limited expresses gratitude to shareholders for their trust and looks forward to shared success in advancing further in the textile industry. The move underscores our commitment to sustainable growth, positioning us as an industry heavyweight. Thanks to shareholders for their trust. We aim to explore new opportunities and optimize capacity utilization levels to achieve operating leverage. Our focus will be on enhancing yarn quality, growing the knits and denim fabric business, and increasing exports.” Result PDF
Textiles company RSWM declares Q3FY22 result: RSWM Ltd posted revenue of INR 1,001 Cr up 39% YoY, EBITDA at INR 122 Cr, PAT stands at INR 50 Cr Total sales recorded for the 9 months stands at INR 2,696 crores Export recorded sales of 9 months INR 1,006 crores up 111% YoY EBITDA for 9 months grows from INR 80 crores to INR 322 crores PAT for 9 months stands at INR 130 crores, turned positive YoY “Commenting on the results, Mr. Riju Jhunjhunwala, Chairman & Managing Director of RSWM Ltd. said, we are pleased with our operating performance for Q3FY22 driven by strong performance in both segment and better realization. We are confident of continuing with the growth momentum for rest of the year and we remain focussed on improving all the key metrics at all levels across our manufacturing facilities and enhance market share. Our consolidation efforts towards new investment allocation and focus on core business capabilities building remains critical for sustainable business growth. We are confident that the company would continue to build on the momentum while executing our blueprint with disciplined determination.” Result PDF
Highlights: RSWM reports H1FY22 income from operation at INR 1695 Cr up 120% YoY, EBITDA at INR 186 Cr,YoY EBITDA Margin at 11% PAT at INR 82 Cr YoY The company continues to report stellar sales performance: Recorded 120% increase in revenue to INR 1695 crores in H1 FY22 in comparison to INR 769 crores revenue in the corresponding period H1 FY21 EBIDTA stood positive in the H1 FY22- A sharp shift from INR (30) crores loss from last year to INR 186 crores profit Profit After Tax for H1FY22 stood at INR 81.66 crores from INR (83) crores in H1FY21 Total Capex of INR 330 crores for Brownfield and Greenfiled expansion Company plans to enter Knits business with initial investment of INR 80 crores in first phase Investment in Denim, Knits and Cotton Yarns is expected to increase top line by around INR 575 crores by FY23 Commenting on the results, Mr. Riju Jhunjhunwala, Chairman & Managing Director of RSWM Ltd. said, “FY21 was full of learnings and challenges both in terms of business and battling the pandemic which catalyst for change. RSWM stood among the companies that envisioned the change and showcased agility to prepare to continue delivering better financial numbers in a highly unpredictable ecosystem. Also, FY21 was a very satisfying year for us because we made structural changes that we believe were critical for a sharper focus of business growth. As we step into a new period of growth with a sharper focus on business growth, our consolidation efforts, new investment allocation and focus on core business capabilities building remains critical for sustainable business growth. With stronger business performance in H1 FY22, we are confident that the company would continue to build on the momentum while executing our blueprint with disciplined determination.” Result PDF