Indian textile firm RSWM's sales grew 38% in Q1 FY23

Upbeat sentiments in domestic markets drove consumer demand and market witnessed a buoyant demand. School uniform season increased demand for yarn, while wedding season increased footfalls on retail end, the company said in a media release.

Domestic demand of the company witnessed a strong growth, increasing 62 per cent year-over-year (YoY). Export sales were in-line with Q1 FY22 at ₹286 crore and exports-maintained momentum YoY despite of recession concern. RSWM’s cost optimisation programme helped in maintaining the profit margin.

Strong realisation led to PAT growth at ₹67 crore up 81 per cent from ₹37 crore in Q1 FY22. Higher raw material prices are getting absorbed by end users; but it still continues to remain a concern for the industry.

Additionally, a 30,000 spindles yarn capacity unit at Gulabpura and denim fabric and knitting units at Banswara undertaken last year, started commercial production from July 1, 2022.

The company’s debt to equity was 0.89 as on June 30, 2022.

Commenting on the results, Riju Jhunjhunwala, chairman and managing director of RSWM Ltd, said: “For Q1 FY23 our focus on execution and cost controls have helped us achieve a strong Q1 performance, where we have increased revenues and improved margins YoY. We have commenced our knitting unit and other expanding capacities in Gulabpura and Banswara, this will put us in a strong position for the coming quarters.

“While commodity prices continue to remain our concern, cost reduction programme and strong positioning is helping us in maintaining profit margin. We remain committed to future growth plans with focus on enhancing our product portfolio, geographical reach and improving efficiencies of higher return on investments. We now look into the future with excitement and confident in our ability to drive continuing value for our stakeholders by delivering the strategic business plan.”

Fibre2Fashion News Desk (KD)