RSWM Ltd. FY22 Revenue at INR 3,850 Cr, up 63%; EBITDA at INR 464 Cr, up 116%; PAT at INR 240 Cr, up ~11 times (YoY)
New Delhi, 27th May 2022: RSWM Ltd.(BSE:500350/NSE:RSWM), RSWM is one of the largest manufacturers and exporters of value added synthetic, mélange, blended spun yarns and denim fabric from India, today announced its financial results for the quarter and year ended March 31st , 2022.
Finanacial Performance and Business Outlook for Q4 and FY22 (INR in Cr):
Particulars | Q4FY22 | Q4FY21 | Growth | FY22 | FY21 | Growth |
Sales | 1,121 | 836 | 34% | 3,817 | 2,326 | 64% |
EBITDA | 142 | 135 | 5% | 464 | 215 | 116% |
EBITDA margin | 12.7% | 16.1% | (340 bps) | 12.2% | 9.2% | +300 bps |
PAT | 110 | 73 | 51% | 240 | 22 | ~11x |
PAT margin | 9.8% | 8.7% | +110 bps | 6.3% | 0.9% | +540 bps |
Business Update:
- Highest ever sales growth in FY22 is led by volume and value growth
- Unrestricted festive gatherings and wedding seasons expected to drive the demand in H2 witnesed in domestic and export market
- Export sales increased 87% in FY22 to INR 1,419 Cr
- Strong realization led to PAT growth of INR 240 Cr up ~11x
- Capex investment of INR 410 Cr in expansion of Denim Fabric manufacturing capacity, Cotton Melange Yarn manufacturing capacity and Modernisation & Balancing equipments across all units started in Q1FY22, are progressing as per schedule.
- Company is planning to invest INR 315 Cr to expand spinning capacity in Banswara unit by 51k spindles.
- Board of Directors of the Company has recommended dividend of Rs.25 per equity share of Face Value of Re. 10.0 each for the year ended March 2022. The same shall be paid subject to the approval of shareholder
- Board has approved the right issue of share capital upto ~INR 250 Cr, will be used in repayment of long term debt and augmentation of long term working capital
- Debt to equity stands at 1.10 as on 31st March 2022
Commenting on the results, Mr. Riju Jhunjhunwala, Chairman & Managing Director of RSWM Ltd. said, “In FY22 RSWM has demonstrated solid execution and showcased the inherent strengths of its business model. We have achieved substantial scale-up in revenues, margin expansion and profit growth to deliver value in a tough operating environment marked by continuing impact of the global pandemic, geo-political upheavals, inflationary trends and supply chain bottlenecks We expect the situation to improve in coming quarters and remain focused on execution and agile to the market opportunities. We at RSWM are now ready to take a leap to transform our business to the next level. We remain committed to future growth plans with focus on enhancing our product portfolio, geographical reach and improving efficiencies of higher return on investments. We now look into the future with excitement and purpose, confident in our ability to drive continuing value for stakeholders by delivering on the strategic business plan”