Rswm Ltd · NSE:RSWM
Rswm — Q4 FY2023 Earnings Presentation
33 slides from Rswm's earnings presentation, May 26, 2023
Slide 1: Exchange filing cover letter for investor presentation
RSWM/SECTT/2023 May 26, 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. MU
Slide 2: Investor Presentation Q4 & FY23
Investor Presentation NSE: RSWM BSE: 500350 Q4 & FY23 TEXTILE DRIVEN BY INNOVATION, GROWTH & TRANSFORMATION
Slide 3: Safe Harbor
Safe Harbor 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, distributed, or disseminated, directly or indire
Slide 4: Content
Content 01 02 Q4 & FY23 Growth Drivers Financials 03 04 Company Strong Historical Profile Fundamental 05 06 Management Annexure Team www.rswm.in 03
Slide 5: Commentary by Chairman & Managing Director
Commenting on the results, Mr. Riju Jhunjhunwala, Chairman & Managing Director, and CEO of RSWM Limited said, “The textile industry faced challenges in FY23 due to various factors such as a slowdown in demand from export markets, supply chain disruptions, and high commodity costs which led to reduce
Slide 6: Commentary by Joint Managing Director
Commenting on the results, Mr. B. M. Sharma, Joint Managing Director of RSWM Limited said, “In the past three quarters, our revenues have faced a decline. However, we are confident that this downward trend has bottomed out, and we anticipate a turnaround in the fourth quarter of FY23. We are determi
Slide 7: Q4 & FY23 Financials
01 Q4 & FY23 Financials Key Highlights 07 Q4FY23 Financial Performance 08 FY23 Financial Performance 10 Average Price Realization 11 06
Slide 8: Key Highlights
Key Highlights ❑ Performance Overview: FY23 proved to be a mixed bag for the Textile Industry, and RSWM Ltd. experienced a similar trajectory. The year began on a strong note with a positive Q1, but the industry faced significant challenges in Q2 and Q3, leading to a steep decline. However, there we
Slide 9: Q4FY23 Financial Performance
Q4FY23 Financial Performance ₹ in Cr Revenue Gross Profit & Gross Profit Margin(%) 1,121 457 956 855 341 312 11.8% 9.2% Increment on Increment on QoQ basis 35.7% 36.5% 35.7% QoQ basis Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 EBITDA & EBITDA Margin(%) PAT 142 110 89 3.1x 43 PAT turns 28 Increment on
Slide 10: Q4FY23 Financial Performance
Q4FY23 Financial Performance Net Working Capital ₹ in Cr ROCE 509 17.4% 16.3% 438 407 12.9% 371 368 8.3% 8.5% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 RONW Fixed Asset Coverage Ratio In times 27.3% 25.6% 16.1% 2.2 1.9 1.9 2.0 1.9 9.0% 9.7% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4F
Slide 11: FY23 Financial Performance
FY23 Financial Performance ₹ in Cr Revenue Gross Profit & Gross Profit Margin(%) 1,681 3,817 1,475 3,789 44.0% 38.9% FY22 FY23 FY22 FY23 EBITDA & EBITDA Margin(%) PAT & PAT Margin(%) 240 464 340 110 12.2% 9.0% 6.3% 2.9% FY22 FY23 FY22 FY23 March 2023 www.rswm.in 10
Slide 12: Average Price Realization
FY21 174 March 2023 FY21 150 Q1FY22 206 Q1FY22 174 Q2FY22 197 Q2FY22 180 216 Q3FY22 Q3FY22 Q4FY22 208 244 Q4FY22 217 216 FY22 FY22 195 Q1FY23 252 216 Q1FY23 PV Grey Yarn PV Dyed Yarn 261 Q2FY23 202 Q2FY23 Q3FY23 174 Q3FY23 248 Q4FY23 Q4FY23 218 168 FY23 189 FY23 244 176 FY21 191 Q1FY22 Q2FY22 204 Q3
Slide 13: Growth Drivers
02 Growth Drivers Growth Drivers 13 12
Slide 14: Growth Drivers: Value Added Yarn Investments
Growth Drivers ▪ Focused on high-value specialty yarn business ▪ The company has invested around ₹410 Cr in the like Dyed and Melange yarn expansion of Denim, Cotton Mélange Yarn, Knits ▪ Change in product mix and value-added products, Business, and Modernization & Balancing equipment across all uni
Slide 15: Company Profile
03 Company Profile About RSWM 15 Milestones 17 Business Vertical 18 Sustainability 21 Strong Parentage 22 14
Slide 16: About RSWM
About RSWM RSWM Limited is one of the largest textile manufacturers and exporters of Synthetic, Blended, Mélange, Cotton, and Specialty value-added yarns, and in the manufacturing of Denim fabric, Knitted fabric, and Green Polyester Fibres. ▪RSWM is the Flagship ▪11 Manufacturing ▪Exports to 70+nati
Slide 17: About RSWM: Manufacturing Locations
About RSWM Kanyakheri Melange Yarn Ringas Fibre Dyeing & Spinning Dyed Yarn Mayur Nagar 4,94,680 Recycled Polyester Spinning Cotton, PV SPINDLES Fibre (Fibre Green) Blended & Open End Greige Yarn Kharigram Fibre Dyeing, Greige 4,800 & Dyed Yarn Spinning, ROTORS Melange Yarn Unit 30K Spindles Mandpam
Slide 18: Milestones
Milestones ▪ Modernization of Reengus plant ▪ Established a Green Fibre with ▪ Added 4 MW ▪ Acquired the Green Fibre an additional Solar power. ▪ Established Rishabhdev plant ▪ Completed an manufacturing capacity of ▪ Total capacity Greige yarn from HEG Ltd. expansion plan unit at Reengus ▪ Launches
Slide 19: Business Vertical: Yarn
Business Vertical: Yarn Dyed Yarn Greige Yarn Melange Yarn ▪ Dyed PV Blended, Poly 100%, Visc. 100%, ▪ Greige is a yarn that hasn't been ▪ Melange yarn, a high-value yarn, is Poly/Visc/Cotton Blended Specialty Yarns bleached or dyed manufactured at its Mandpam and from unorthodox fibres ▪ Greige yar
Slide 20: Business Vertical: Denim
Business Vertical: Denim ▪ LNJ Denim, a denim-manufacturing facility established in 2007 under RSWM Limited (the flagship company of LNJ Bhilwara Group), has a manufacturing capacity of 33.4 million meters annually. Capable of processing 3000+ denim variants ▪ LNJ Denim has earned an excellent reput
Slide 21: Business Vertical: Knitted Fabric
Business Vertical: Knitted Fabric 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 fabrics ensure comfort, weightlessness, wrinkle resistance, and a
Slide 22: Sustainability
Sustainability ▪ Promoting Sustainable Practices: RSWM Ltd. exemplifies its commitment to the environment by prioritizing sustainable business practices. During Pellets extruded the quarter, we proudly recycled an impressive 18,000 MT of PET plastic into Yarns bottles, reducing waste and conserving
Slide 23: Strong Parentage
Strong Parentage March 2023 www.rswm.in 22
Slide 24: Strong Historical Fundamental
04 Strong Historical Fundamental Financial Data 24 Financial Return Ratio 25 23
Slide 25: Strong Historical Fundamental
Strong Historical Fundamental ₹ in Cr Revenue EBITDA & EBITDA Margin(%) PAT 464 240 3,817 3,789 340 2,961 2,771 2,326 6.4% 210 264 215 12.8% 110 68.5% Four Year Four Year Three Year CAGR 7.1% 9.5% 9.2% 12.2% 9.0% CAGR 23 22 CAGR FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 F
Slide 26: Strong Historical Fundamental: ROCE, RONW, Net Worth
Strong Historical Fundamental ROCE RONW Net Worth ₹ in Cr 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 ₹ in Cr Capital Employed ₹ in Cr 1,321 2,841 2,538 2,
Slide 27: Management Team
05 Management Team Management Team 27 Achievements 29 26
Slide 28: Director & Key Managerial Personnel, Corporate Team
Management Team Mr. Prakash Maheshwari Mr. Suketu Shah Chief Executive Chief Executive (Corp. Affairs & TPP) (Denim) Mr. Sukesh Sharma Mr. Arvind Gupta Chief Executive Chief Executive (Yarn) (Melange Yarn & Knits) Mr. Manoj Sharma Mr. Puneet Anand Mr. Riju Jhunjhunwala Mr. B. M. Sharma Mr. Avinash B
Slide 29: Leadership Training Program
Management Team Leadership Training Program March 2023 www.rswm.in 28
Slide 30: Achievement
Achievement RSWM Limited Most Innovative Risk – LNJ Denim Holds the prestigious Winner of Management Strategy Winner and Endowed Award for best HR with Progress “3 Star Trading “The Rajasthan Energy of the Year practices to CHRO Towards House” status by Govt. Conservation Award” in Sustainability Aw
Slide 31: Thank You
Thank You G E T I N TO U C H W I T H U S 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.
Slide 32: Annexure: Profit and Loss Statement
Annexure ₹ in Cr Period Q4FY23 Q3FY23 Q4FY22 FY23 FY22 Total Income 997.02 864.86 1132.53 3,880.34 3,849.54 (Incl. other income) Raw Material Cost 568.70 535.73 648.72 2,356.59 2,196.71 Employee Cost 94.66 105.16 100.62 418.48 401.40 Power Cost 111.04 99.84 104.06 424.78 387.83 Other Expenses 87.33
Slide 33: Annexure: Assets and Liabilities
Annexure ₹ in Cr Assets 31.03.23 31.03.22 Liabilities 31.03.23 31.03.22 Non-current Assets 1,449.07 1,238.87 Shareholders' Fund 1,268.42 998.54 Fixed Assets 1,298.23 1,086.42 Share Capital 47.10 23.55 Investments 75.01 89.27 Reserve & Surplus 1,221.32 974.99 Other Non-current Assets 75.83 63.18 Non-