RSWM Ltd

RSWM Ltd. is the flagship Company of the LNJ Bhilwara Group. RSWM is primarily engaged in the manufacture of synthetic, blended, melange,specialty yarns ,fabrics & Denim. Additionally, it has 154 looms and produces 17 million metre polyester viscose blended suiting annually which is marketed under the brand Mayur Suitings. The company also produces denim fabrics on 86 looms with annual production of 16 million metres. The company supplies to several well-known companies including Raymonds, Uco Denim, D’ Decor, Arvind, Siyaram Silk Mills, Welspun Group, and Alok Industries. Another listed company – Cheslind Textiles which was its subsidiary has been merged into the company, effective 31st March 2015.

The company, for Q4FY17 posted a muted set of numbers when compared YoY. Net sales were up 7%(YoY) at Rs. 825 crore. But net profit dropped 10% at Rs.29 crore . Higher expenses pulled down the overall profitability. EBITDA was down 39% at Rs.71 crore while margins slipped sharply from 15% to 8.6%. Total expenses were up 11% driven mainly by raw material costs which were up 15%. And employee costs too rose 6.5%.

It ended FY17 with a consolidated net profit at Rs.104 crore, down 7%

The company’s borrowings stand at Rs.1220 crore and per annum, some Rs.110-115 crore is its interest outgo. Equity stands at Rs.23.55 crore and EPS for the fiscal is at Rs.44.67 (FV of Rs.10).