Industry Recovery Boosts Margins Amid Global Challenges: Riju Jhunjhunwala
RSWM Ltd., one of India’s largest manufacturers of value-added synthetic, mélange, blended spun yarns, denim fabric, knitted fabric and green polyester fibres, has announced its unaudited financial results for Q1 FY25, ending on June 30, 2024.
Financial Highlights for Q1 FY25 (Rs in cr.):
- Sales: Rs 1,208 cr., up 3.1% QoQ and 34.1% YoY
- Gross Profit (GP): Rs 434 cr., up 7.8% QoQ and 29.2% YoY
- GP Margin: 35.9%, a QoQ increase of 155 bps
- EBIDTA: Rs 54 cr., maintaining stability QoQ and growing 2.2x YoY
- EBIDTA Margin: 4.4%, a YoY increase of 169 bps
- PAT: Rs -14 cr., reflecting the impact of industry challenges
Commenting on the results, Riju Jhunjhunwala, CMD & CEO of RSWM Ltd., stated, “The textile industry is on a path to recovery, with moderate demand improvement both domestically and in export markets. Despite global supply chain disruptions and rising logistics costs, shifts in sourcing preferences have stabilized Indian cotton prices, supporting our margins.”
Jhunjhunwala highlighted that international cotton prices have declined by 10%-12%, making imported cotton more competitive. He noted that stable crop conditions and a good monsoon are expected to maintain price stability. “Our Q1 FY25 performance remained stable due to better asset utilization and cost efficiency. Looking ahead, we will focus on optimizing product mixes, cost efficiencies and capacity utilization to enhance our market position,” he added.
RSWM Ltd. is also making strategic investments in renewable energy and innovation, which, along with increased funding for the textile sector in the Union Budget 2024-25, are expected to drive long-term growth.
