RSWM Limited has Reported its Q3 & 9M FY24 Financial Results

RSWM Ltd. (BSE: 500350/NSE: RSWM), is one of the largest manufacturers and exporters of value-added synthetic, mélange, blended spun yarns, denim fabric, knitted fabric, and green polyester fibers from India, today announced its unaudited financial results for the Q3 & 9M FY24 quarter which ended 31st December 2023.

- Total sales recorded at ₹977 Cr. during Q3FY24, up by 14.3% (YoY).

- Gross Profit for Q3FY24 amounted to ₹346 Cr, up by 10.8% (YoY) with a Gross Profit Margin of 35.4%.

- EBITDA for Q3FY24 stands at ₹22 Cr. with an EBITDA margin of 2.3%.

- For 9M FY24, net sales reached at ₹2,886 Cr. with a GP of ₹1,045 Cr. and a GP Margin of 36.2%. Also, EBITDA for 9M FY24 was at ₹77 Cr. with an EBITDA Margin of 2.7%.

- RSWM's potential acquisition of Ginni Filaments Limited marks a pivotal step towards sustainable growth and market leadership

Commenting on the results, Mr. Riju Jhunjhunwala, Chairman & Managing Director and CEO of RSWM Limited 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."

Shares of RSWM Limited was last trading in BSE at Rs. 218.65 as compared to the previous close of Rs. 224.20. The total number of shares traded during the day was 11876 in over 558 trades.

The stock hit an intraday high of Rs. 227.10 and intraday low of 214.10. The net turnover during the day was Rs. 2608306.00.

Source : Equity Bulls

Keywords

RSWM INE611A01016 Q3FY24 9MFY24 ResultUpdate