RSWM Limited — Earnings Release 2023

May 26, 2023

Limited

an LNJ Bhilwara Group Company

==> picture [47 x 45] intentionally omitted <==

==> picture [76 x 11] intentionally omitted <==

----- Start of picture text -----

PROUD TO BE INDIAN
PRIVILEGED TO BE GLOBAL
----- End of picture text -----

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. 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 w .rswm.in

This is for your information and record please.

==> picture [5 x 5] intentionally omitted <==

Thanking you,

Yours faithfully, For RSWM LIMITED

SURENDER Digitally signed by SURENDER KUMAR KUMAR GUPTA Date: 2023.05.26 GUPTA 19:23:29 +05'30' SURENDER GUPTA VICE PRESIDENT - LEGAL & COMPANY SECRETARY FCS-2615

Encl.: As above

==> picture [177 x 30] intentionally omitted <==

(Formerly Rajasthan Spinning & Weaving Mills Limited)

==> picture [527 x 10] intentionally omitted <==

Corporate Office : Regd. Office : Bhilwara Towers, A-12, Sector-1 Kharigram, P. 8. No. Naida - 201 301 (NCR-Delhi}, India Dist!. Bhilwara, (Rajasthan), India Tel: +91-120-4390300 (EPABX) Fax: +91-120-4277841 Fax: +91-1483-223361, 223479 Website: www.rswm.in Website: www.lnjbhilwara.com GSTIN: 09AMCR9700M1Z1 GSTIN: 08AMCR9700M1Z3 Corporate Identification Number: L 17115RJ1960PLC008216

Kharigram, P. 8. No. 28, Post Office Gulabpura - 311 021 Dist!. Bhilwara, (Rajasthan), India Tel.: +91-1483-223144 to 223150, 223478 Fax: +91-1483-223361, 223479 Website: www.lnjbhilwara.com GSTIN: 08AMCR9700M1Z3

==> picture [582 x 10] intentionally omitted <==

Press Release

RSWM Ltd. reports in Q4 & FY23 results

• ❖ Total sales recorded for Q4FY23 at ₹956 Cr, up ~11.8% (QoQ)

• ❖ EBITDA for Q4FY23 stands at ₹89 Cr, up by 3.1x (QoQ)

• ❖ PAT for Q4FY23 turned positive ₹43 Cr from ₹ (14) Cr in Q3FY23.

• ❖ Board of Directors of the Company has recommended dividend of ₹5/- per equity share for FY23. The same shall be paid subject to the approval of Shareholders in the ensuing Annual General Meeting of the Company

New Delhi, 26[th] May 2023 : RSWM Ltd. ( BSE: 500350/NSE: RSWM) , is one of the largest manufacturers and exporters of value-added synthetic, mélange, blended spun yarns, denim fabric, knitted fabric, and green polyester fibers from India, today announced its audited financial results for the Q4 & FY23 ended 31[st] March 2023.

Financial Performance for Q4 & FY23 (₹ in Cr):

Particulars	Q4FY23	Q3FY23	QoQ	FY23	FY22
Sales	956	855	11.8%	3,789	3,817
EBITDA	89	28	3.1x	340	464
EBITDA margin	9.3%	3.3%	+600 bps	9.0%	12.2%
PAT	43	(14)		110	240
PAT margin	4.5%			2.9%	6.3%

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 reduced margins. However, the sector is now showing signs of recovery with improved demand due to normalized inventory levels, correction in cotton prices and freight costs, and better utilization leading to higher EBITDA margins. Domestic cotton prices have also corrected by 40% from their peak, reducing the disparity between domestic and international cotton prices. The spinning industry is returning to near-normal levels of utilization, indicating green shoots of recovery. The Q4FY23 results serve as evidence of this. Despite short-term challenges, the industry remains optimistic about future growth opportunities and is committed to expanding product lines, fortifying financial footing, and increasing profits through operational efficiency.

The Government's endeavor to transform India into a textile hub instills confidence, as does the pursuit of a Free Trade Agreement (FTA) with major economies. At RSWM, we exercise caution while maintaining an optimistic outlook on the sector, steadfastly progressing with our strategic expansion plan. As a versatile and adaptable company operating across different products and markets, our manufacturing facilities equip us with the necessary capabilities to navigate demanding circumstances. With a solid financial standing, an extensive range of products, and a committed workforce, we remain hopeful that we will consistently generate robust outcomes and enhance value for all our stakeholders.”

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

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

RSWM Ltd. produces and supplies high-quality yarns to some of the most renowned brands in India and over 70+ countries abroad. For the last 57 years, the company has been producing high-quality cotton, mélange, synthetic, novelty yarns, and denim fabric 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 more than 50 glorious years and today the single textile mills of 1961 have expanded into several plants; the Group export earnings comprise 50% of its turnover and has strategically diversified over the period. It stands proudly as a multi-products and services conglomerate in textile, 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 India's largest setups on the corporate horizon. 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 Chief Financial Officer Tel: 0148 322515 Email:cfo.rswm@lnjbhilwara.com

Shri Surender Gupta VP – Legal and Company Secretary Tel: +91 120 4390058 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 employees are 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)