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Earnings Call Transcript

RSWM Earnings Call Transcript: Key Takeaways

RSWM reports modest 1.7% sequential revenue growth amid volatile global markets. Management is pivoting toward higher-margin value-added segments like denim garments and recycled PET to counteract yarn cyclicality.

Guidance and delivery
Management target Revenue FY28
Highlights
Revenue growthSequential revenue up 1.7% to ₹1,161 Cr; domestic demand healthy.
MarginsEBITDA margins expanded to 8% via product mix and cost control.
Demand visibilityMixed; strong domestic consumption but muted international demand in Middle East.
Management confidenceBalanced; focused on operational excellence despite global macro uncertainties.

Growth

Revenue grew sequentially to ₹1,161 Cr; EBITDA margins improved slightly to 8.0% driven by cost efficiency.

Outlook

Targeting ₹500 Cr revenue from new B2B PET project starting Q1 FY28 with 15% margins.

Risks

Geopolitical conflicts in West Asia causing supply chain disruptions and high freight costs.

Last quarter's promises, checked

Delivered

  • Guided 7.4% EBITDA margin → delivered 8.0% (= BEAT)
  • Guided sequential margin expansion → delivered 60bps QoQ increase (= BEAT)
  • Guided high 90s yarn utilization → delivered mid-90s (= BEAT)

Partly delivered

  • Guided ₹92 Cr knit expansion for FY27 H1 → progressing in phased manner (= PARTIAL)

Missed

  • Guided revenue growth vs previous year → delivered ₹1,161 Cr (vs ₹1,093 Cr Q3) but lower than historical peaks (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: RSWM. Summary written with AI assistance from the document.

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RSWM Ltd: key numbers

Share price
₹218.34
Market cap
₹1,028 Cr
Revenue (annual)
₹4,554 Cr
Net profit (annual)
₹52.01 Cr
P/E (TTM)
16.2×Sector 55.7×
Promoter holding
55.69%+0.00% QoQ
FII holding
0.97%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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RSWM Limited received an ESG rating of 59 from ESG Risk Assessments & Insights Limited. The company has not verified the data used for this rating.