Q1 2025 RSWM Ltd Earnings Call Transcript
Key Points
- RSWM Ltd (BOM:500350) reported a 3.1% quarter-on-quarter increase in sales to INR1,208 crores, with a year-on-year growth of 34%.
- Gross profit rose by 7.8% quarter-on-quarter and 29.2% year-over-year to INR434 crores, reflecting effective cost management.
- The company has maintained full production capacity, distinguishing itself from many competitors.
- RSWM Ltd (BOM:500350) has managed its inventory well, reducing aging stock and controlling costs.
- The company entered into an agreement to sell its cost-inefficient thermal power plant for INR48 crores, and approved a capital expenditure of INR740 crores for a new greenfield unit in Jammu.
- The average yarn spread decreased by 0.9% quarter-over-quarter, putting pressure on margins if cotton prices remain high.
- The company reported a net loss of INR14 crores for the quarter.
- EBITDA margin saw a small decline of 17 basis points quarter-over-quarter, indicating stable but not improving operational efficiency.
- The textile industry faces challenges due to geopolitical issues, including disruptions in Bangladesh and competition from China.
- RSWM Ltd (BOM:500350) has a significant debt position with outstanding term loans around INR900 crores.
Ladies and gentlemen, good day, and welcome to the RSWM Limited Q1-FY25 earnings conference call. We have with us today from the management, Mr. B.M. Sharma, Joint Managing Director; Mr. Nitin Tulyani, President and CFO; Mr. Rakesh Jain, General Manager Corporate Finance; Mr. Surender Gupta, VP Legal and Company Secretary. (Operator Instructions)
Before we proceed with this call, I would like to take this opportunity to remind everyone about the disclaimers related to this conference call. Today's discussion may be forward-looking in nature based on management's current beliefs and expectations. It must be viewed in conjunction with the risks that our business faces that could cause our future results, performance or achievements to differ significantly from what may be expressed or implied by such forward-looking statements.
I now hand the conference over to Mr. Nitin Tulyani for his opening remarks. Thank you, and over to you, sir.
Thank you for the introduction. Good evening to everyone, and
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