RSWM Limited — Earnings Release 2022

May 27, 2022

Limited

an LNJ Bhilwara Group Company

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PROUO TO BE INOIAN
PRIVILEGED TO BE GLOBAL
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RSWM/SECTT /2022 May 27, 2022

BSE Limited National Stock Exchange oflndia 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. MUMBAI - 400 051. Code: 500350 Code: RSWM

Subject: Press Release of the Company

Dear Sir,

Please find enclosed the press release being issued by the Company.

This will also be hosted on the Company's website at w.rswm.in

This is for your information and record please.

Thanking you,

Yours faithfully, For RSWM LIMITED

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SUR.ENDER GUPTA

A VP - LEGAL & COMPANY SECRET ARY

FCS-2615

Encl.: As above

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(Formerly Rajasthan Spinning & Weaving Mills Limited)

Regd. Office: Kharigram, Post Office Gulabpura - 311 021 Distt. Bhilwara, (Rajasthan), India Tel: +91-1483-223144 to 223150, 223478 Fax: +91-1483-223361, 223479 Website: www.lnjbhilwara.com GSTIN: 08AAACR9700M1Z3

Corporate Office : Regd. Office: Bhilwara Towers, A-12, Sector-1 Noida - 201 301 (NCR-Delhi), India Distt. Bhilwara, (Rajasthan), India Tel: +91-120-4390300 (EPABX) Fax: +91-120-4277841 Fax: +91-1483-223361, 223479 Website: w.rswm.in Website: www.lnjbhilwara.com GSTIN: 09AAACR9700M1Z1 GSTIN: 08AAACR9700M1Z3 Corporate Identification Number: L 17115RJ1960PLC008216

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Press Release

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)

• Total sales recorded for FY22 stands at INR 3,817 crores 64% YoY

• Export recorded sales INR 1,419 crores up 87% YoY

• EBITDA for FY22 stands at INR 464 crores to INR 215 crores in FY21

• PAT stands at INR 240 crores up ~11x

• The Board of Directors has recommended its dividend of 250% to equity shareholder, i.e. Rs.25 per equity share of Face Value of Rs. 10.0 each for the year ended March 2022. The same shall be paid subject to the approval of shareholders.

New Delhi, 27[th ] 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 31[st] , 2022.

Fianacial 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 bp
PAT	110	73	51%	240	22	~11x
PAT margin	9.8%	8.7%	+110 bps	6.3%	0.9%	+540 bp

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.

CIN:L17115RJ1960PLC008216/ RSWM Ltd. Kharigram, P.O. Gulabpura-311021 Dist. Bhilwara (Rajasthan)

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• Board of Directors of the Company has recommended dividend of Rs.25 per equity share of Face Value of Rs. 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 31[st] 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”

About RSWM Limited (BSE: 500350, NSE: RSWM)

RSWM Ltd. produces and supplies high-quality yarns to some of the most renowned brands in over 78 countries. For the last 57 years, the company is producing high-quality cotton, melange, synthetic and novelty yarns and denim fabric that’s used to drape populations around the world. RSWM is one of the largest manufacturers and exporters of synthetic and blended spun yarns from India.

About LNJ Bhilwara:

The esteemed journey of the LNJ Bhilwara Group started in 1960, when the Group’s founder, Mr. L. N. Jhunjhunwala established a textile mill in Bhilwara, Rajasthan. The Group has completed 50 glorious years and today that single textile mill of 1961 has expanded into several plants; the Group export earnings comprise 50% of its turnover and has strategically diversified, stands proud as a multi-products and services conglomerate in textiles, graphite electrodes, power generation, IT-enabled services, power engineering consultancy services, Energy storage solutions & Skill development.

LNJ Bhilwara Group is a well-diversified conglomerate and stands as one of the largest setups on the corporate horizon in India. The USD 967 million LNJ Bhilwara Group (www.lnjbhilwara.com), commands 20 production units, is strategically located, markets internationally, and employs over 25,000 employees globally. HEG Ltd. is the group’s flagship company and has the world’s largest single-location graphite electrode manufacturing plant. The group also owns two hydroelectric projects under Bhilwara Energy Ltd.

Contacts:

Shri Avinash Bhargava Shri Surender Gupta Chief Financial Officer AVP – Legal and Company secretary Tel: 0148 322515 Tel: +91 120 4390058 Email:cfo.rswm@lnjbhilwara.com Email: skg@lnjbhilwara.com

Safe Harbor

This document includes certain forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors. RSWM Ltd., its directors and any of the affiliates or employee is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

CIN:L17115RJ1960PLC008216/ RSWM Ltd. Kharigram, P.O. Gulabpura-311021 Dist. Bhilwara (Rajasthan)