Rswm Ltd · NSE:RSWM
Rswm — Q2 & H1 FY24 Earnings Presentation
33 slides from Rswm's earnings presentation, Nov 9, 2023
Slide 1: Cover letter to stock exchanges
RSWM/SECTT/2023 November 9, 2023 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Listing Department, 1st Floor, New Trading Ring, Exchange Plaza, C-1, Block - G, Rotunda Building, P.J. Towers, Bandra-Kurla Complex, Dalal Street, Bandra (East), MUMBAI - 400 001
Slide 2: Investor Presentation Q2 & H1 FY24
Investor Presentation NSE: RSWM BSE: 500350 Q2 & H1 FY24 September 2023 TEXTILE DRIVEN BY INNOVATION, GROWTH & TRANSFORMATION
Slide 3: Safe Harbor
Safe Harbor Ensuring Security and Data Protection This presentation has been prepared by RSWM (“Company") solely for information purposes without any regard to any specific objective, financial situation, or informational need of any particular person. This presentation may not be copied, distribute
Slide 4: Inside this Presentation
Content Inside this Presentation 01 02 Q2 & H1 FY24 Growth Drivers Financials 03 04 Company Strong Historical Profile Fundamental 05 06 Management Annexure Team www.rswm.in 03
Slide 5: From CMD's Desk
From CMD’s Desk Commenting on the results, Mr. Riju Jhunjhunwala, Chairman & Managing Director and CEO of RSWM Limited said, “In the Q2FY24, we've noticed a resurgence in demand in anticipation of the upcoming holiday and festive season, even as we grapple with significant challenges brought on by v
Slide 6: From JMD's Desk
From JMD’s Desk Commenting on the results, Mr. B. M. Sharma, Joint Managing Director of RSWM Limited said, “The Q2FY24 financial report highlights a positive trend in revenue after a challenging nine months. However, PAT for the quarter showed a decrease in profit, attributed to sluggish demand, dep
Slide 7: Q2 & H1 FY24 Financials
01 Q2 & H1 FY24 Financials 07 Key Highlights 09 Q2 FY24 Financial Performance 10 H1 FY24 Financial Performance 11 Average Price Realization 06
Slide 8: Key Highlights: Q2 and H1 FY24
Key Highlights Q2 FY24 Highlights ❑ Revenue Growth: In the Q2FY24, our revenue increased to ₹1,007 Cr., up by 11.8% from ₹901 Cr. in the previous quarter Q1FY24. ❑ Gross Profit: Our Gross Profit in Q2FY24 reached ₹363 Cr., marking an 8.1% increase compared to the previous quarter, with a Gross Profi
Slide 9: Key Highlights: Expansion Investment and Future Outlook
Key Highlights Expansion Investment Compact Cotton Yarn: ❑ Compact Cotton Yarn unit of 51,072 spindles at Lodha (Banswara) has commenced it commercial production from September 2023. This premium product will hit the market in the coming quarters, reflecting our commitment to growth and product dive
Slide 10: Q2 FY24 Financial Performance
Q2 FY24 Financial Performance Financial Outcomes ₹ in Cr Revenue Gross Profit & Gross Profit Margin(%) Net Working Capital 1,007 385 509 458 363 371 396 954 368 901 336 40.3% 37.3% 36.1% Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Fixed Asset Coverage Ratio In times
Slide 11: H1 FY24 Financial Performance
H1 FY24 Financial Performance Financial Outcomes ₹ in Cr Revenue Gross Profit & Gross Profit Margin(%) 1,978 1,908 822 699 41.6% 36.6% H1FY23 H1FY24 H1FY23 H1FY24 EBITDA & EBITDA Margin(%) PAT 222 81 55 2.8% 11.3% 2.8% 2.9% H1FY23 H1FY24 (33) H1FY23 H1FY24 September 2023 www.rswm.in 10
Slide 12: Average Price Realization
Q2FY22 197 Q2FY22 180 September 2023 Q3FY22 216 Q3FY22 208 Q4FY22 244 Q4FY22 217 216 FY22 FY22 195 Q1FY23 252 216 Q1FY23 261 Q2FY23 Q2FY23 202 Q3FY23 248 Q3FY23 PV Grey Yarn PV Dyed Yarn 174 168 218 Q4FY23 Q4FY23 FY23 189 FY23 244 Q1FY24 167 Q1FY24 222 Average Price Realization Q2FY24 165 211 Q2FY24
Slide 13: Growth Drivers
02 Growth Drivers 13 Growth Drivers 12
Slide 14: Promising Catalyst Propelling Company's Future
Growth Drivers Promising Catalyst Propelling Company’s Future ▪ Focused on high-value specialty yarn ▪ The company has invested around ₹410 Cr in the business like Dyed and Melange yarn expansion of Denim, Cotton Mélange Yarn, Knits ▪ Change in product mix and value-added Business, and Modernization
Slide 15: Company Profile
03 Company Profile 15 About RSWM Limited 17 Milestones 18 Business Verticals 21 Sustainability 22 Strong Parentage 14
Slide 16: Nation's Largest Textile Manufacturer & Exporter
About RSWM Limited Nation’s Largest Textile Manufacturer & Exporter RSWM Limited, headquartered in Noida, is one of India’s largest textile manufacturers and exporters of Synthetic, Blended, Mélange, Cotton, and Specialty value-added yarns, and in the manufacturing of Denim fabric, Knitted fabric, a
Slide 17: Strategically Located in Rajasthan State
About RSWM Strategically Located in Rajasthan State Kanyakheri 5,45,752 Melange Yarn SPINDLES Ringas Fibre Dyeing & Spinning Mayur Nagar, Lodha Dyed Yarn Recycled Spinning Cotton, PV Blended & Polyester Fibre (Green Fibre) Open End Greige Yarn 4,800 ROTORS Kharigram Fibre Dyeing, Greige & Dyed Yarn
Slide 18: Milestones: Well Established Player
Milestones Well Established Player ▪ Expansion of Unit located at Lodha Unit, Banswara by ▪ Added 4 MW Solar addition of 51,072 ▪ Established a Green ▪ Modernization of power. Spindles of Compact ▪ Acquired the ▪ Completed an Fibre manufacturing ▪ RSWM Launches its Ringas Spinning ▪ Total capacity C
Slide 19: Business Vertical: Yarn
Business Vertical: Yarn Producing Top-Quality Yarn in Distinct Categories Dyed Yarn Greige Yarn Melange Yarn Combined Compact Yarn ▪ Dyed PV Blended, Poly 100%, Visc. ▪ Greige is a yarn that hasn't been ▪ Melange yarn, a high-value yarn, is ▪ RSWM started its latest innovation 100%, Poly/Visc/Cotton
Slide 20: Business Vertical: Denim
Business Vertical: Denim Renowned for Exceptional Quality Worldwide ▪ LNJ Denim, a denim-manufacturing facility established in 2007 under RSWM Limited (the flagship company of LNJ Bhilwara Group), has a manufacturing capacity of 32.4 million meters annually. Capable of processing 3,000+ denim varian
Slide 21: Business Vertical: Knitted Fabric
Business Vertical: Knitted Fabric Creating Value Through Exploration of Knitted Fabric Production Ventured into Knitted Fabric to create value ▪ After being the leading supplier of high-quality yarn to the world, RSWM Limited has ventured into producing circular knitting fabrics ▪ Our well-kitted fa
Slide 22: Sustainability: Re-imagined & Re-use for Sustainable clothing
Sustainability Re-imagined & Re-use for Sustainable clothing ▪ Promoting Sustainable Practices: RSWM Ltd. exemplifies its commitment to the Pellets extruded environment by prioritizing sustainable business practices. During the FY23, we into Yarns proudly recycled an impressive 54,000 MT of PET plas
Slide 23: Strong Parentage: LNJ Group
Strong Parentage LNJ Group: Firm Foundation with Powerful Parental Backing September 2023 www.rswm.in 22
Slide 24: Strong Historical Fundamental
04 Strong Historical Fundamental 24 Financial Data 25 Financial Ratios 23
Slide 25: Underlying Financial & Operational metrics
Strong Historical Fundamental Underlying Financial & Operational metrics ₹ in Cr Revenue EBITDA & EBITDA Margin(%) PAT 464 240 3,817 3,789 339 2,961 2,771 2,326 6.4% 210 264 215 12.8% 110 68.5% Four Year Four Year Three Year CAGR CAGR CAGR 7.1% 9.5% 9.2% 12.2% 9.0% 23 22 FY19 FY20 FY21 FY22 FY23 FY1
Slide 26: Financial Ratios
Strong Historical Fundamental Financial Ratios ₹ in Cr ROCE RONW Net Worth 16.3% 1,268 27.3% 999 783 761 8.5% 706 6.1% 9.7% 3.4% 4.3% 3.2% 2.8% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 (3.1%) Fixed Asset Turnover In times Net Debt Capital Employed 1,321 2,841 2,538
Slide 27: Management Team
05 Management Team 27 Management Team 29 Achievement 26
Slide 28: Management Executive Director & Key Managerial Personnel
Management Team Management Mr. Prakash Maheshwari Mr. Suketu Shah Chief Executive Chief Executive (Corp. Affairs & TPP) (Denim) Mr. Balkrishan Sharma Mr. Arvind Gupta Business Head & Chief Executive Chief Executive (Yarn) (Melange Yarn) Mr. Arvind Kumar Maurya Mr. Manoj Sharma Chief Executive Presid
Slide 29: Program for Enhancing Leadership Abilities
Management Team Program for Enhancing Leadership Abilities Leadership Training Program September 2023 www.rswm.in 28
Slide 30: Achievement: Remarkable Testimonial of Endeavor
Achievement Remarkable Testimonial of Endeavor Most Innovative Risk RSWM Limited Holds the prestigious Winner of Management Strategy – LNJ Denim (Winner) Award for best HR “3 Star Trading House” “The Rajasthan Energy of the Year practices to CHRO Endowed with Progress status by Conservation Award” i
Slide 31: Thank You
Thank You GET IN TOUCH WITH US Shri Avinash Bhargava Shri Surender Gupta Chief Financial Officer VP – Legal and CS Tel: 01483 222515 Tel: +91 120 4390058 E: cfo.rswm@lnjbhilwara.com E: skg@lnjbhilwara.com Corporate Office Registered Office Bhilwara Towers, Kharigram, A-12, Sector - 1 P.O. Gulabpura
Slide 32: Profit & Loss Statement
Annexure Profit & Loss Statement ₹ in Cr Quarterly Half-Yearly Yearly Parameter Q2FY24 Q1FY24 QoQ Q2FY23 H1FY24 H1FY23 FY23 Total Income 1,016.58 910.84 11.80% 963.27 1,927.42 2,018.41 3,880.34 Raw Material Cost 666.89 600.49 609.74 1,267.40 1,252.16 2,356.59 Employee Cost 118.49 114.24 109.95 232.7
Slide 33: Balance Sheet Statement
Annexure Balance Sheet Statement ₹ in Cr Assets H1 FY24 FY23 Liabilities H1 FY24 FY23 Non-current Assets 1,580.19 1,449.07 Shareholders' Fund 1,238.32 1,268.42 Fixed Assets 1,420.48 1,298.23 Share Capital 47.10 47.10 Investments 105.79 75.01 Reserve & Surplus 1,191.22 1,221.32 Other Non-current Asse