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RSWM Limited Interim / Quarterly Report 2021
61804_rns_2021-08-12_b8f88cb5-6e12-406f-a9b9-367d4706ce92.pdf
Interim / Quarterly Report
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RSWM/SECTT/2021 August 12, 2021
| 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. |
| Scrip Code: 500350 | Serio Code: RSWM |
Sub: Investors presentation on the Unaudited Financial Results of the Company for the quarter ended 30th June, 2021.
Dear Sir,
Please find enclosed a copy of Investors Presentation on the Unaudited Financial Results of the Company for the quarter ended 30th June, 2021 for your information and record.
Thanking you,
Yours faithfully, For RSWM LIMITED
SURENDER GUPTA AVP-LEGAL & COMPANY SECRETARY FCS-2615
Encl.: As above
(Formerly Rajasthan Spinning & Weaving Mills Limited)
Corporate Office : Bhilwara Towers, A-12, Sector-1 Noida • 201 301 (NCR-Delhi), India Tel: +91-120-4390300 (EPABX) Fax: +91-120-4277841 Website: www.rswm.in GSTIN: 09AAACR9700M1Z1 Regd. Office: Kharigram, Post Office Gulabpura • 31 1 021 Distt. Bhilwara, (Rajasthan), India Tel: +91-1483-223144 to 223150, 223478 Fax:+91-1483-223361,223479 Website: www.lnjbhilwara.com GSTIN: 08AAACR9700M1Z3
Corporate Identification Number: L17115RJ 1960PLC008216
An LNJ Bhilwara Group Company
Q1 FY22 Performance
Q1 FY22 Financial Highlights
RSWM LIMITED
CIN:L17115RJ1960PLC008216
Regd. Office: Kharigram, P.O. Gulabpura, Distt. Bhilwara, Rajasthan - 311021
Phone: +91-1483-223144 to 223150, Fax: +91-1483-223361, 223479
Corporate Office: Bhilwara Towers, A-12, Sector - 1, Noida - 201 301 (U.P)
Phone: +91-120-4390300 (EPABX), Fax: +91-1204277841, Website: www.rswm.in, E-mail:[email protected]
Unaudited Financial Results for the Quarter Ended June 30, 2021
| (₹ in Crore) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Standalone Quarter Ended | Standalone Financial Consolidated Quarter Ended Year Ended |
Consolidated Financial Year Ended |
||||||
| Particulars | June 30, 2021 |
March 31, 2021 |
June 30, 2020 |
March 31, 2021 |
June 30, 2021 |
March 31, 2021 |
June 30, 2020 |
March 31, 2021 |
| Unaudited | Audited | Unaudited | Audited | Unaudited | Audited | Unaudited | Audited | |
| Total Income from Operations (Net) | 749.99 | 859.06 | 219.84 | 2,365.43 | 749.99 | 859.06 | 219.84 | 2,365.43 |
| Net Profit/(Loss) for the period (before Tax, Exceptional and/or Extraordinary items) |
40.13 | 84.53 | (101.63) | 4.26 | 40.13 | 84.53 | (101.63) | 4.26 |
| Net Profit/(Loss) for the period before Tax (after Exceptional and/or Extraordinary items) |
40.13 | 84.53 | (101.63) | 4.26 | 40.13 | 84.53 | (101.63) | 4.26 |
| Net Profit/(Loss) for the period after Tax (after Exceptional and/or Extraordinary items & Share of profit of Associates) |
37.29 | 72.97 | (65.75) | 21.61 | 36.91 | 71.38 | (66.11) | 20.83 |
| Total Comprehensive Income for the period [Comprising Profit/(Loss) for the period (after Tax) and Other Comprehensive Income (after Tax)] |
57.64 | 91.64 | (54.13) | 55.31 | 57.27 | 90.11 | (54.50) | 54.56 |
| Equity Share Capital |
23.55 | 23.55 | 23.55 | 23.55 | 23.55 | 23.55 | 23.55 | 23.55 |
| Reserves (excluding Revaluation Reserve) as shown in balance sheet of the previous year |
737.61 | 768.28 | ||||||
| Earning Per Share (of ₹10/- each) (for continuing and discontinued operations) |
||||||||
| Basic (₹) | 15.83 | 30.99 | (27.92) | 9.18 | 15.67 | 30.31 | (28.07) | 8.84 |
| Diluted (₹) | 15.83 | 30.99 | (27.92) | 9.18 | 15.67 | 30.31 | (28.07) | 3 8.84 |
Q1 FY22 Financial Highlights
-
The above financial results have been reviewed by the Audit Committee and subsequently approved and taken on record by the Board of Directors at its meeting held on August 12, 2021. The Limited Review for the quarter ended June 30, 2021 results as required under Regulation 33 of SEBI (Listing Obligation and Disclosure Requirements) Regulation 2015, has been carried out by the Statutory Auditors.
-
The Other Comprehensive Income (OCI) in the Statement of Profit and Loss, includes unrealized gain/(Loss) on fair valuation of equity instruments amounting to ₹ 23.23 Crore ( previous year loss ₹ (31.69 Crore)).
-
Impact of Covid-19 Pandemic
Outbreak of Covid-19 has disturbed the economic activity through interruption in manufacturing process, disruption in supply chain, etc. for the Company during the year ended 31 March 2021 and during the recent second wave. The Company has considered the possible effects that may result from COVID-19 in the preparation of financial results including assessment of its liquidity position from the previous recoverability and carrying value of its assets and liabilities as on June 30, 2021. The Company has considered internal and external sources of information for making said assessment. On the basis of said assessment, the Company expects to recover the carrying amount of these assets and no material adjustment is included in the financial results. The impact of any events and developments occurring after the balance sheet date on the financial results for the quarter ended June, 2021 may differ from that estimated as at the date of approval of these financial results and will be recognized prospectively.
-
The figures for the quarter ended March 31, 2021 are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto December 31, 2020.
-
The figures of the previous period/year have been regrouped/recast wherever considered necessary.
By Order of the Board For RSWM Limited
Date: August 12, 2021 Riju Jhunjhunwala Chairman & Managing Director DIN 00061060
Place: Noida (U.P)
Q1, FY22 Market Update
- After an unprecedented lock-down and disruptions in Ist half, business bounced back in second half of FY21.
- Business sentiments of Q4 continued in April 21 before the deadly 3rd wave of Covid-19.
- Industry witnessed yet another lockdown/restrictions in almost half of the Q1 but by and large either Governments or Industries have learnt to live with pandemic.
- Therefore, unlike the Ist wave there was no reverse migration and no forceful shutdown of factories but movement of goods was affected.
- The Company has been able to manage operations at full capacity through out the period of restrictions.
- The Q1, FY22 has been ended with total revenues at Rs.750 Cr. and PAT of Rs.37 Cr.
Q1,FY22 Financial Highlights
Performance Snapshot Rs.in Cr.
| Q1,FY22 | Q1,FY21 | % Var. | FY21 | FY20 | % Var. | |
|---|---|---|---|---|---|---|
| Sales | 742 | 216 | 244% | 2326 | 2771 | -16% |
| EBIDTA | 90 | (46) | 215 | 264 | -19% | |
| PAT | 37 | (66) | 22 | 23 | -5% |
| 30.06.21 | 31.03.21 | % Inc./Dec. | |
|---|---|---|---|
| Networth | 819 | 761 | 8% |
| Total Debt (Incl. Bills) | 940 | 922 | 2% |
- Q1, FY22 also seen lockdown/restrictions caused by IInd wave but Q1, FY22 remained better in terms of Company's Cash Flow and Profitability.
- EBIDTA increased to Rs.90 Cr. in Q1, FY22 as against Rs.(46) Cr. in Q1, FY21.
- Debts slightly increased as compared to 31st March due to increased working capital utilisation on account of stock of cotton & increased volume of business
Q1,FY22 Financial Highlights
Profitability Highlights
| ` | in Cr. |
|---|---|
| --- | -------- |
| Total Income (Incl. other income) |
Q1 FY22 749.99 |
Q1 FY21 219.84 |
Q4 FY21 859.06 |
FY21 2365.43 |
FY20 2850.36 |
|---|---|---|---|---|---|
| Raw Material Cost | 450.00 | 117.71 | 453.03 | 1217.99 | 1566.82 |
| Employee Cost | 97.66 | 54.33 | 93.48 | 312.33 | 370.09 |
| Power Cost | 85.28 | 36.94 | 79.38 | 258.04 | 338.70 |
| Other Expenses | 94.02 | 40.07 | 104.12 | 279.85 | 331.65 |
| Inc./Dec. in Inventory | (66.56) | 16.77 | (5.79) | 82.25 | (20.64) |
| EBIDTA | 89.60 | (45.98) | 134.84 | 214.97 | 263.74 |
| EBIDTA Margin (%) | 12.08% | (21.30%) | 16.13% | 9.24% | 9.51% |
| Depreciation | 31.07 | 32.06 | 31.80 | 127.68 | 131.67 |
| Finance Cost | 18.40 | 23.59 | 18.51 | 83.03 | 108.51 |
| Profit Before Tax | 40.13 | (101.63) | 84.53 | 4.26 | 23.56 |
| Tax | 2.84 | (35.88) | 11.56 | (17.35) | 0.89 |
| Net Profit After Tax | 37.29 | (65.75) | 72.97 | 21.61 | 22.67 |
| Net Profit Margin (%) | 5.03% | (30.46%) | 8.73% | 0.92% | 0.82% 9 |
Balance Sheet Highlights
| in Cr.| 30.06.21 | 31.03.21 | in Cr.<br> | 30.06.21 | 31.03.21 |
|----------------------|----------|----------|---------------------------|----------|----------|
| Assets | | | Liabilities | | |
| Non-current Assets | 1079 | 1052 | Shareholders' Fund | 819 | 761 |
| Fixed Assets | 908 | 928 | Share Capital | 24 | 24 |
| Investments | 115 | 92 | Reserve & Surplus | 795 | 737 |
| Other Non-current | | | | | |
| Assets | 56 | 32 | Non-current Liabilities | 376 | 401 |
| Current Assets | 1057 | 986 | Long Term Borrowing | 299 | 334 |
| | | | Other Non-current | | |
| Inventories | 509 | 450 | Liabilities | 77 | 67 |
| Trade Receivable | 401 | 378 | Current Liabilities | 941 | 876 |
| Other Current Assets | 147 | 158 | Short Term Borrowing | 484 | 429 |
| | | | Other Current Liabilities | 457 | 447 |
| Total Assets | 2136 | 2038 | Total Liabilities | 2136 | 2038 |
Key ratios
| Q1, FY22 | FY21 | FY20 | FY19 | FY18 | ||
|---|---|---|---|---|---|---|
| Balance sheet ratios | ||||||
| fixed asset cover ratio |
1.99 | 1.88 | 1.75 | 1.47 | 1.62 | |
| DE ratio excl CPTL |
0.83 | 0.90 | 1.35 | 1.43 | 1.41 | |
| DE ratio incl CPTL |
1.02 | 1.11 | 1.51 | 1.69 | 1.56 | |
| debt service coverage ratio (DSCR) | 1.83 | 1.15 | 0.85 | 0.79 | 0.66 | |
| interest coverage ratio (ISCR) | 4.87 | 2.59 | 2.43 | 1.76 | 2.24 | |
| current ratio | 1.35 | 1.38 | 1.30 | 1.24 | 1.13 | |
| current ratio incl CPTL |
1.12 | 1.13 | 1.15 | 1.01 | 1.01 | |
| Earning Ratio | ||||||
| return on capital employed (%) | 10.97 | 4.28 | 6.05 | 3.42 | 5.11 | |
| return on net worth (%) | 18.22 | 2.84 | 3.21 | (3.10) | 1.61 | |
| return on sales (%) | 5.03 | 0.93 | 0.82 | (0.82) | 0.49 | |
| EBITDA margin % | 12.08 | 9.24 | 9.52 | 7.09 | 8.94 | |
| EPS | ||||||
| basic EPS (₹) | 15.83 | 9.18 | 9.62 | (10.30) | 6.16 | |
| cash EPS (₹) | 30.23 | 56.02 | 65.91 | 38.42 | 61.91 11 |
Debt Equity
Debt (Excl. Bills) and Equity last 4 Years (Rs.in Cr.)
In last 4 years debt has reduced by Rs.567 Cr. from Rs.1402 Cr. as on 31.03.18 to Rs.835 Cr. as on 31.03.21.
Debt Equity Ratio improved from 1.56 as on 31.03.18 to 1.02 as on 30.06.21.
Net Working Capital* (Rs.in Cr.)
*excl. CPTL
Net Working Capital doubled in last 4 years from Rs.135 Cr. as on 31.03.18 to Rs.269 Cr. as on 31.03.21 and Rs.272 Cr. as on 30.06.21.
Raw Material Prices
Average Sales Realisation
PV Grey Yarn
| Period | Price |
|---|---|
| 2018-19 | 171 |
| 2019-20 | 157 |
| Q1, 21 | 153 |
| Q2, 21 | 130 |
| Q3, 21 | 143 |
| Q4, 21 | 172 |
| 2020-21 | 150 |
| Q1, 22 | 174 |
PV Dyed Yarn
| Period | Price |
|---|---|
| 2018-19 | 199 |
| 2019-20 | 191 |
| Q1, 21 | 179 |
| Q2, 21 | 162 |
| Q3, 21 | 170 |
| Q4, 21 | 186 |
| 2020-21 | 174 |
| Q1, 22 | 206 |
Average Sales Realisation
| Period | Price |
|---|---|
| 2018-19 | 220 |
| 2019-20 | 204 |
| Q1, 21 | 185 |
| Q2, 21 | 185 |
| Q3, 21 | 202 |
| Q4, 21 | 245 |
| 2020-21 | 209 |
| Q1, 22 | 291 |
Melange Yarn
| Period | Price | |
|---|---|---|
| 2018-19 | 318 | |
| 2019-20 | 291 | |
| Q1, 21 | 272 | |
| Q2, 21 | 254 | |
| Q3, 21 | 276 | |
| Q4, 21 | 318 | |
| 2020-21 | 281 | |
| Q1, 22 | 372 |
Average Sales Realisation
Denim
| Period | Price |
|---|---|
| 2018-19 | 159 |
| 2019-20 | 171 |
| Q1, 21 | 174 |
| Q2, 21 | 164 |
| Q3, 21 | 176 |
| Q4, 21 | 182 |
| 2020-21 | 176 |
| Q1, 22 | 191 |
Fabric
| Period | Price |
|---|---|
| 2018-19 | 131 |
| 2019-20 | 132 |
| Q1, 21 | 122 |
| Q2, 21 | 112 |
| Q3, 21 | 115 |
| Q4, 21 | 114 |
| 2020-21 | 114 |
| Q1, 22 | 108 |
Current Scenario and outlook
- Resurgence of Covid-19 pandemic and imposition of local lockdowns, night/weekend curfews and various restrictions impacting dispatches in Q1,FY22.
- Concerns of 3rd Covid-19 wave making dealer and retail chain cautious in buying quantities and stocking.
- With increasing vaccination, fear is reducing and business is expected to go good if 3rd wave comes.
- Company's manufacturing units are operating at normal capacity.
- Inventories are under control.
- Increased penetration of Organised retail, Favourable demographics and rising income level will drive demand of Textiles.
- Pandemic has led to increased demand for Technical Textiles also.
Current Scenario and outlook
- As India has the abundant raw material such as cotton, wool, silk and jute and also has the comparative advantage in terms of skilled manpower and cost of production. The future of Indian Textiles is good.
- 100% FDI is allowed (automatic route), PLI of Rs. 10683 Cr (USD 1.44 billion) for man made fibre and Technical Textiles, support to handloom weavers under MUDRA Scheme will led to the growth.
- Huge funds in schemes such as Integrated Textile Park (SITP) and TUFS has been released by the government during 2015-16 to 2019-20 indicates increasing investments.
Current Scenario and outlook
- Sufficient cash generation has put the Company in very comfortable position in terms of liquidity.
- The Company is exploring the long term growth opportunities.
- Company is investing around Rs.330 Cr. in expansion of Denim Fabric manufacturing capacity, Cotton Melange Yarn manufacturing capacity and Modernisation & Balancing equipments across all units.
- Above projects started in Q1 and progressing as per schedule.
- Investment in Denim and Cotton Yarns expected to increased our top line by around Rs.375 Cr.
LNJ Bhilwara Group – At a glance
LNJ Bhilwara Group - Diversified presence across sectors
- 6 Group companies listed on the Stock Exchanges.
- Over 1,000,000 stake holders in the Group.
- Production units & Corporate office spread across the country at 38 locations
- All key companies ISO certified
- Over 28,000 strong workforce.
RSWM Ltd. – At a glance
RSWM – Overview
- Flagship company of LNJ Bhilwara Group
- Incorporated in 1960
- One of the largest textile manufacturers of Synthetic, Blended, Mélange, Cotton, Speciality and Value added yarns. Also manufacturing Fabrics, Denim and Green Polyester Fiber.
- Exports to over 78 countries
- 'Golden Trading House' status
- Sales Office and Distribution Network across the country
Installed Capacity
- 43000 MTs p.a. Green Polyester Fiber manufacturing capacity
- 445192 Spindles and 4800 Rotors Spinning
- 10 million meter p.a. PV Fabrics
- 24 million meter p.a. Fabric Processing
- 25 million mtrs p.a. Denim Fabric manufacturing capacity -Composite Facility (Spinning+Weaving+Processing+Dyeing)
- 46 MW Thermal Power, 22 MW Solar Power
- 1960 – Company incorporated and in 1961 established a spinning unit at Bhilwara.
- 1973 - Second plant commissioned at Gulabpura. Later, Bhilwara plant was spun off as independent Company (Bhilwara Spinners Ltd.)
- 1989 - Established grey yarn spinning unit at Banswara.
- 1994 - Established Melange Yarn manufacturing unit at Mandpam, Bhilwara
- 2003 - Acquired Rishabhdev plant from HEG Ltd.
- 2005 - Acquired Jaipur Polyspin Ltd., Reengus and Mordi Textiles & Processors Ltd. Banswara
-
2006 – 2007 Completed an ambitious expansion plan with capital cost of Rs.700 Crore. Set-up Composite Denim Fabric unit, Captive Thermal Power Plant of 46 MW, Expansion of capacity at all the existing locations.
-
2011 – 2012 Executed another expansion plan with capital outlay of Rs. 400 Crore. Expanded capacity at Kharigram (SJ-11), Banswara (Rotors), Denim (Spinning), Mordi (50 Looms).
- 2014 - Established a Green Fiber manufacturing unit at Reengus with capacity of 18000 MTs p.a.
- 2015 – Added another Melange Yarn unit at Kanyakheri, Bhilwara.
- 2017 – Installation of Sheet Dyeing facility at Denim
- 2017 - Commissioned 3.3 MW Rooftop Solar Power Plant at Mandpam and Kanyakheri.
- 2018-19 – 18.7 MW Solar Power Plant and 25000 MTs p.a. Green Fibre
- 2019-20 – 3.3 MW Solar Power Plant
Certifications
- ISO 9001:2015 : Quality System Certification
- ISO EMS - 14001:2015 : Environment Management Certification
- OHSAS - 18001: 2007 : Health and Safety Certification
- SA- 8000:2015 (certified by BSI) : Social Accountability
- ISO EnMS – 5001 : 2012: Energy Management Systems
- Oeko-Tex-100 (certified by Hoihenstein) : Human Ecological Certification
- GOTS : Global Organic Textile Standard
- GRS : Global Recycle Standard
- Organic Cotton Fair Trade Standards.
Product Portfolio
- Synthetic Yarns – Grey/Dyed PV Blended, Poly 100%, Visc. 100%, Poly/Visc/Cotton Blended Specialty Yarns from unorthodox fibres like Bamboo, Bamboo-charcoal, Flex, Lycra, Tencel, Trevira CS, Birla Modal, Protex, X-static, Beltron, Huvis FR polyester etc.
- Melange Yarns - High value cotton yarn, combining two or more fibres largely considered fancy yarn used in casual wear, sports wear, business suits, shirts, bed linen, decorative fabrics and other high end home furnishings.
- Fabrics - PV Fabrics, FR Fabrics, Oil and Water repellent fabrics.
Denim - Capable of processing 3000+ denim variants. Manufacturing normal denim, value added denim range comprises denim-outof-denim (recycled denim), work wear like anti-bacterial, hydrophobic, anti odour, fire retardant, power stretch, plasma denim. Rich blended denims like cotton with linen, cotton with Kashmere wool, cotton with viscose and 100% tencel.
Branding
Manufacturing Units
- 1. Spinning Unit - Kharigram, P.O. Gulabpura, Dist. Bhilwara, Rajasthan 2. Spinning Unit - Village Lodha, Banswara, Rajasthan 3. Spinning Unit - Rishabhdev, Dist. Udaipur, Rajasthan 4. Spinning Unit - Reengus, SP-1, Industrial Area, Reengus, Dist. Sikar, Rajasthan 5. Green Fibre Unit - Reengus, SP-1, Industrial Area, Reengus, Dist. Sikar, Rajasthan 6. Spinning Unit - Mandpam, Bhilwara, Rajasthan 7. Spinning Unit - Kanyakheri, Bhilwara, Rajasthan 8. Fabric Unit - Village Mordi, Banswara, Rajasthan 9. Denim Unit - Village Mordi, Banswara, Rajasthan
Captive Power Plants
1. 46MW Thermal Power Unit - Village Mordi, Banswara, Rajasthan
2. 22 MW Solar Power - Mandpam, Kanykheri, Kharigram, Mordi, Reengus
Corporate Governance
- RSWM recognises Corporate Governance not as a set of rules but as a framework supporting the core values.
- Good Governance helps us to maintain trust with the shareholders, stakeholders, employees and society at large
- RSWM believes that good governance is the key to doing business in a sustainable manner, which creates value for the society
- The Company is managed by its Board of Directors, which formulates strategies & policies and carries out periodic review of its performance
-
Board of Directors:
-
Mr. Ravi Jhunjhunwala Director
-
Mr. Shekhar Agarwal Director
-
Mr. Arun Churiwal Director
-
Mr. Amar Nath Chaudhary Independent Director
-
Mr. Riju Jhunjhunwala Chairman & Managing Director
- Mr. B. M. Sharma Joint Managing Director
- Dr. Kamal Gupta Independent Director
- Mr. P.S. Dasgupta Independent Director
- Mrs. Archana Capoor Independent Director
- Mr. Deepak Jain Independent Director
Corporate Information
Key Managerial Persons
Mr. B. M. Sharma - Joint Managing Director Mr. Avinash Bhargava - Chief Financial Officer Mr. Surender Gupta- Company Secretary
Mr. Riju Jhunjhunwala- Chairman & Managing Director
Business Heads and Key Executives
Mr. Prakash Maheshwari- Chief Executive (Corp.Affairs & TPP) Mr. Suketu Shah- Chief Executive (Denim & Fabric) Mr. Ashwani Mittal- Dy. Chief Executive (Melange Yarn) Mr. Sukesh Sharma Dy. Chief Executive (Yarn)
Auditors
Lodha & Co., New Delhi S. S. Kothari Mehta & Co., New Delhi
Registered Office Kharigram, P.O. Gulabpura – 311 021 Dist. Bhilwara (Rajasthan)
Corporate Office Bhilwara Towers, A-12, Sector - 1 Noida – 201 301 (U.P.)
Corporate Information
For further information, please contact:
Shri Avinash Bhargava Chief Financial Officer Tel: 01483 222515 Cell: 9414005164 Email: [email protected] Shri Surender Gupta Company Secretary Tel: 0120 4390058 Cell: 9818646484 Email: [email protected]
Shri Rakesh Jain DGM – Corporate Finance Tel: 01483 222118 Cell: 9413356091 Email: [email protected]
DISCLAIMER
This presentation is the property of RSWM Limited (the "Company") and is strictly confidential. It contains information intended only for the person to whom it is transmitted. With receipt of this information, recipient acknowledges and agrees that: (i) this document is not intended to be distributed, and if distributed inadvertently, will be returned to the Company as soon as possible; (ii) the recipient will not copy, fax, reproduce, divulge, or distribute this confidential information, in whole or in part, without the express written consent of the Company; (iii) all of the information herein will be treated as confidential material with no less care than that afforded to its own confidential material.
This presentation is for informational