RSWM Reports Strong 24% Revenue Growth In H1 FY25
RSWM Ltd, a leading Indian manufacturer of synthetic, mélange, blended spun yarns, denim fabric, knitted fabric and green polyester fibres, has reported significant financial growth for the second quarter (Q2) and first half (H1) of FY25, ending on 30th September 2024.
Key Financial Highlights:
- Q2 FY25 Revenue rose 15.7% year-on-year (YoY) to Rs 1,166 crore, fueled by robust sales across domestic and international markets. Gross profit increased by 17.8% to Rs 428 crore, enhancing margins by Rs 65 crore YoY.
- EBITDA for Q2 jumped 41.7% YoY, with a margin of 3.6%, achieved through strategic cost efficiencies.
- The fabric division saw a 22% YoY growth despite pricing pressures in the yarn segment.
For H1 FY25, revenue surged by 24.4% YoY to Rs 2,374 crore, while EBITDA soared by 75.3%, backed by an optimized product mix and cost-saving initiatives.
Financial Metrics at a Glance (Rs in Cr.):
| Metric | Q2 FY25 | Q1 FY25 | QoQ | Q2 FY24 | YoY | H1 FY25 | H1 FY24 | YoY |
| Sales | 1,166 | 1,208 | (3.5)% | 1,007 | 15.7% | 2,374 | 1,908 | 24.4% |
| Gross Profit | 428 | 434 | (1.5)% | 363 | 17.8% | 862 | 699 | – |
| Gross Profit Margin | 36.7% | 35.9% | +75 bps | 36.1% | +63 bps | 36.3% | 36.6% | (33) bps |
| EBITDA | 42 | 54 | (21.1)% | 30 | 41.7% | 96 | 55 | 75.3% |
| EBITDA Margin | 3.6% | 4.4% | (81) bps | 3.0% | +67 bps | 4.0% | 2.8% | +118 bps |
| PAT | (21) | (14) | – | (15) | – | (35) | (33) | – |
Commenting on the results, Riju Jhunjhunwala, CMD & CEO of RSWM Ltd, stated, “The first half of FY25 has been transformative, with a 24.4% revenue growth, reaching Rs 2,374 crore. Operational efficiency and cost management helped achieve a 75.3% YoY EBITDA growth and a 4.0% margin. Despite these advancements, we reported a PAT loss of Rs 35 crore, attributed to increased depreciation and finance costs from investments in new assets and higher working capital demands. The launch of the Kapaas project and integration of newly acquired units have posed short-term challenges but are positioning us for sustainable growth.”
