Rswm Ltd · NSE:RSWM
Rswm — Q3 & 9M FY23 Earnings Presentation
31 slides from Rswm's earnings presentation, Feb 10, 2023
Slide 1: Cover letter to stock exchanges
RSWM/SECTT/2023 February 10, 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 00
Slide 2: Investor Presentation Q3 & 9M FY23
Investor Presentation NSE: RSWM BSE: 500350 Q3 & 9M 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: Table of Content
TABLE OF CONTENT 1 Q3 & 9M FY23 Financial Performance 2 Drivers Of Growth 3 Company Profile 4 Strong Historical Fundamental 5 Management Team 6 Annexure 03 Investor Presentation || December 2022 Table Of Content
Slide 5: Message from CMD's Desk
MESSAGE FROM CMD’S DESK Commenting on the results, Mr. Riju Jhunjhunwala, Chairman & Managing Director, and CEO of RSWM Limited said, “The Indian Textile Industry encountered a few bumps in the road in 2022 due to unpredictable geopolitical events and variable raw material prices. The demand from th
Slide 6: Message from JMD's Desk
MESSAGE FROM JMD’S DESK Commenting on the results, Mr. B. M. Sharma, Joint Managing Director of RSWM Limited said, “The past few quarters have been a trying time for our company, following a strong start in FY23, due to a widespread contraction in demand brought about by elevated oil and gas prices,
Slide 7: Q3 & 9M FY23 Financial Performance
Q3 & 9M FY23 Financial Performance
Slide 8: Quarterly Key Highlights
QUARTERLY KEY HIGHLIGHTS Business Update: ▪ Textile Industry faces tough times as consumers cut spending. ▪ Consumers in the United States, Europe, and other big markets have cut spending on clothing following a surge in inflation after the war in Ukraine. ▪ Export which constitutes 22% of Industry,
Slide 9: Financial Performance: Q3 FY23
FINANCIAL PERFORMANCE: Q3 FY23 Revenue Gross Profit & Gross Profit Margin % ₹ in Cr 1,001 444 855 312 44.3% 36.5% Q3FY22 Q3FY23 Q3FY22 Q3FY23 EBITDA & EBITDA Margin % PAT 122 50 12.1% 28 3.3% (14) Q3FY22 Q3FY23 Q3FY22 Q3FY23 08 Investor Presentation || December 2022 Financial Performance
Slide 10: Financial Performance: Q3 FY23
FINANCIAL PERFORMANCE: Q3 FY23 ROCE RONW 17.4% 25.6% 16.3% 24.0% 12.9% 12.9% 19.3% 16.1% 8.3% 9.0% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Fixed Asset Coverage Ratio In times Net Working Capital ₹ in Cr 438 407 371 368 334 1.8 1.9 1.9 2.0 1.9 Q3FY22 Q4FY22 Q1FY23 Q2FY23
Slide 11: Financial Performance: 9M FY23
FINANCIAL PERFORMANCE: 9M FY23 Revenue Gross Profit & Gross Profit Margin % ₹ in Cr +5.0% 1,224 2,696 2,833 1,135 45.4% 40.1% 9MFY22 9MFY23 9MFY22 9MFY23 EBITDA & EBITDA Margin % PAT & PAT Margin % 322 130 67 251 11.9% 4.8% 8.9% 2.4% 9MFY22 9MFY23 9MFY22 9MFY23 10 Investor Presentation || December 2
Slide 12: Average Sales Realization: Q3 FY23
AVERAGE SALES REALIZATION: Q3 FY23 Yarn per Kg PV Grey Yarn Cotton Grey Yarn Denim per meter 359 329 319 319 291 297 208 217 216 195 202 245 250 242 172 174 180 174 209 202 143 150 Q4FY21 Q3FY21 FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY21 Q4FY21 FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22
Slide 13: Drivers of Growth
RSW Limited an LNJ Bhilwara Group Company DRIVERS OF GROWTH
Slide 14: Drivers of Growth
DRIVERS OF GROWTH ▪ 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
Slide 15: Company Profile
Limited an LNJ Bhilwara Group Company PROFILE
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. 19% ▪RSWM is the Flagship ▪ 11 Manufacturing ▪Exports to 70
Slide 17: Strategic Location Decoding Potential Growth
STRATEGIC LOCATION Kanyakheri Melange Yarn Ringas Fibre Dyeing & DECODING Potential Growth Spinning Dyed Yarn Mayur Nagar Recycled Polyester Spinning Cotton, PV Fibre (Fibre Green) Blended & Open End Greige Yarn Kharigram 4,94,680 Fibre Dyeing, Greige & SPINDLES Dyed Yarn Spinning, Melange Yarn Unit
Slide 18: Milestone: Well-Established Player
MILESTONE: WELL-ESTABLISHED PLAYER ▪ Modernization of Reengus ▪ Established a plant Green Green Fibre Fibre with an ▪ Added 4 MW ▪ Acquired the ▪ Completed an manufacturing additional Solar power. ▪ Established Rishabhdev expansion plan unit at capacity of ▪ Total capacity Greige yarn plant from HEG
Slide 19: Business Verticals: Yarn
BUSINESS VERTICALS: 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 ya
Slide 20: Business Verticals: Denim
BUSINESS VERTICALS: 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 repu
Slide 21: Business Verticals: Knits
BUSINESS VERTICALS: KNITS Venturing 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 multitu
Slide 22: Strong Parentage
STRONG PARENTAGE POWER CONSULTANCY ELECTRODES ▪ Indo Canadian Consultancy Services Limited ▪ HEG Limited POWER TEXTILES ▪ Balephi Jal-Vidyut Co. P. Limited - Nepal ▪ RSWM Limited ▪ NJC Hydro Power Limited ▪ Maral Overseas Limited ▪ AD Hydro Power Limited ▪ BSL Limited ▪ Bhilwara Energy Limited ▪ BMD
Slide 23: Strong Historical Fundamentals
STRONG HISTORICAL FUNDAMENTALS
Slide 24: Strong Fundamentals: Leading to Growth
STRONG FUNDAMENTALS: LEADING TO GROWTH Revenue EBIDTA EBIDTA Margin ₹ in Cr 12.2% 3,817 464 9.5% 9.2% 8.9% 2,943 2,961 2,771 7.1% 2,326 263 264 210 215 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 PAT Net Cash Flow From Operation Net Working Capital 320 240 407 271 231
Slide 25: Exceptional: Return Ratio
EXCEPTIONAL: RETURN RATIO Return on Capital Employed Return on Net Worth Net Worth ₹ in Cr 13.8% 999 24.0% 901 783 761 706 6.1% 5.1% 4.3% 3.4% 3.2% 2.8% 1.6% -3.1% FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Fixed Asset Turnover In times Net Debt ₹ in Cr Capital Employ
Slide 26: Management Team
Limited A an LNJ Bhilwara Group Company 000 OPO 2: cat ier ee ~ MANAGEMENT wees
Slide 27: Management Team
MANAGEMENT TEAM Director & Key Managerial Personnel Mr. Riju Jhunjhunwala Mr. B. M. Sharma Mr. Avinash Bhargava Mr. Surender Gupta Chairman, CEO and Joint Managing Director Chief Financial Officer VP – Legal & CS Managing Director Management Mr. Prakash Maheshwari Mr. Suketu Shah Mr. Sukesh Sharma M
Slide 28: Achievement
ACHIEVEMENT Award for best HR Most Innovative Risk Winner of “The practices Management Strategy Holds the prestigious Rajasthan Energy of the Year “3 Star Trading House” Conservation Award” - To CHRO by UBS status by Govt. of India in the Textile Sector Forum - CRO Leadership Summit & Awards 2022 Th
Slide 29: Get in Touch with Us
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. Gulabpura
Slide 30: Thank You!
>) RSVWM Limited Thank You!
Slide 31: Annexure: Profit & Loss Statement
ANNEXURE Profit & Loss Statement ₹ in Cr Period Q3FY23 Q3FY22 Q2FY22 9MFY23 9MFY22 FY22 FY21 Total Income 864.86 1007.12 963.27 2,883.27 2715.65 3,849.54 2,365.43 (Incl. other income) Raw Material Cost 535.73 582.12 609.74 1,787.89 1548 2,196.71 1,217.99 Employee Cost 105.16 101.38 109.95 323.82 300