Any current/future capex/capital investment/strategic investment?

RSWM Limited has undertaken a capacity expansion at the Lodha unit, adding 51,072 spindles. The formal inauguration of this expansion took place on 2nd August 2023. The new spindle unit is expected to be operationalized within 1 to 2 months. This capacity expansion was planned years ago and aims to improve production quality and meet growing demand, especially for cotton and cotton-blended yarns. They have also made a strategic acquisition of BG Winds Power Company Limited, adding 20 megawatts of solar power capacity to their existing 29 megawatts of renewable capacity. The company i

Future growth expectations in sales/revenue/volumes?

Market currently facing low demand, low prices, overstocking; expected to continue for 1-2 months. Hopeful demand will improve during upcoming festive season and second half (H2) of FY24, expected to be better than first half (H1). New capacity expansion of 51,072 spindles at Lodha unit to be operationalized within 1-2 months, improving quality and production. Shift towards specialty and blended yarns with higher value, aiming to capture growing demand. Domestic demand expected to gain momentum, especially with festival season and knitting market activities. Strategic focus on polyes

Future growth expectations in earnings/operating earnings/profits/EPS?

Market conditions remain challenging with low demand, low prices, and overstocking impacting the textile industry currently. Management expects some revival in demand in H2 FY24, with better conditions than H1 FY24. The upcoming festival season starting end of August is anticipated to drive demand growth over the next two quarters. Capacity expansion (51,072 spindles at Lodha unit) is underway and expected to be operational in 1-2 months, enhancing product quality and specialty yarn production. Cotton prices have stabilized, which may support margin improvement going forward. Export market re

Current/ Expected Orderbook/ Pending Orders?

The export order book for the furnishing segment remains relatively thin, indicating weak international demand. Indian denim segment's FY24 orders are facing delays across brands due to sluggish sales and high inventory levels. The overall textile market is cautious, with some mills experiencing a decline in backlog of sold orders for dyed yarns, leading to partial production shutdowns. Positive signs include a steady purchase trend from domestic brands in segments like innerwear and loungewear. RSWM has secured an initial sales order of 25 metric tonnes in print fabrics from Antigua, reflecti

RSWM LtdQ1 FY24Textiles & Apparels

RSWM Ltd Q1 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹202P/E: 14.3Market Cap: ₹1.0K CrSector: Textiles & Apparels

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

Market currently facing low demand, low prices, overstocking; expected to continue for 1-2 months.
Hopeful demand will improve during upcoming festive season and second half (H2) of FY24, expected to be better than first half (H1).
New capacity expansion of 51,072 spindles at Lodha unit to be operationalized within 1-2 months, improving quality and production.
Shift towards specialty and blended yarns with higher value, aiming to capture growing demand.
Domestic demand expected to gain momentum, especially with festival season and knitting market activities.
Strategic focus on polyester fabrics and eco-friendly, intelligent fabrics targeting sustainable and functional apparel market.
Export demand currently subdued; domestic sales constituting about 75% of revenue, expected to balance out with market improvement.
Overall expectation is cautious optimism with potential volume and revenue growth in H2FY24 as market conditions revive.

Margin guidance

Category 3

Market conditions remain challenging with low demand, low prices, and overstocking impacting the textile industry currently.
Management expects some revival in demand in H2 FY24, with better conditions than H1 FY24.
The upcoming festival season starting end of August is anticipated to drive demand growth over the next two quarters.
Capacity expansion (51,072 spindles at Lodha unit) is underway and expected to be operational in 1-2 months, enhancing product quality and specialty yarn production.
Cotton prices have stabilized, which may support margin improvement going forward.
Export market remains weak, currently forming about 25% of revenue (down from 65%), but domestic demand shows tentative signs of improvement.
Financial outlook is cautious; Q1 FY24 reported a loss of ₹18 Cr PAT, but management remains optimistic about H2 recovery.
Strategic focus on specialty and polyester fabrics, sustainable products, and partnerships with brands (e.g., Benetton, Puma) expected to drive future growth.

See what RSWM Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

- There is no explicit mention of any new fundraising through debt or equity in the Q1FY24 earnings call transcript. - The company discussed existing net debt of around ₹1,350 crore (₹750 crore term loans and ₹600-650 crore working capital) with average cost of finance around 6-7% after subvention. - No reference was made to plans for fresh debt or equity raising. - The company is focusing on capacity expansion and operational improvements but did not mention raising new funds through debt or equity. - The acquisition of BG Winds' 20 MW solar capacity was completed earlier and not a fresh fundraising event. In summary, based on the transcript, RSWM Limited has not disclosed any current or planned fundraising activities via debt or equity.

Order book

The export order book for the furnishing segment remains relatively thin, indicating weak international demand.
Indian denim segment's FY24 orders are facing delays across brands due to sluggish sales and high inventory levels.
The overall textile market is cautious, with some mills experiencing a decline in backlog of sold orders for dyed yarns, leading to partial production shutdowns.
Positive signs include a steady purchase trend from domestic brands in segments like innerwear and loungewear.
RSWM has secured an initial sales order of 25 metric tonnes in print fabrics from Antigua, reflecting encouraging outcomes.
Anticipation of an uptick in demand over the next two quarters driven by the festive season starting end of August.
Improvement in dyed yarn sector expected around September with potential revival following a traditionally lean period in July and August.

See what RSWM Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes

RSWM Limited has undertaken a capacity expansion at the Lodha unit, adding 51,072 spindles.
The formal inauguration of this expansion took place on 2nd August 2023.
The new spindle unit is expected to be operationalized within 1 to 2 months.
This capacity expansion was planned years ago and aims to improve production quality and meet growing demand, especially for cotton and cotton-blended yarns.
They have also made a strategic acquisition of BG Winds Power Company Limited, adding 20 megawatts of solar power capacity to their existing 29 megawatts of renewable capacity.
The company is investing in renewable energy to rationalize power and fuel costs, indicating ongoing and future investments in the renewable segment.

Track RSWM Ltd — get its next earnings analysis in your feed

How does RSWM Ltd rank vs peers in Textiles & Apparels?

Pro feature

ThisRSWM Ltd

Rev 4Mar 3

See where RSWM Ltd sits in Textiles & ApparelsSee which companies these are, and every other name in the sector.Open rankings

How does RSWM Ltd rank in Textiles & Apparels?

Compare RSWM Ltd against every Textiles & Apparels company (Q1 FY24) on revenue, margins and earnings-call signals.

View Textiles & Apparels leaderboard →

What RSWM Ltd's management said in earlier quarters

Others in Textiles & Apparels this season

Purple United Sales Ltd (Q1 FY27)
Reported revenue from operations for FY 2025-26: ₹17,063 lakh, a 65% increase from ₹10,313 lakh in FY 2024-25. Key investor presentation takeaways from Purple U
Ambika Cotton Mills Ltd (Q1 FY27)
FY 2025–26 showed renewed growth with revenue increasing by ~11% to ₹780.95 crore. Key concall takeaways from Ambika Cotton Mills Ltd's Q1 FY27 earnings call…
Orbit Exports Ltd (Q1 FY27)
Revenue from Operations for Q1 FY 2026-27: ₹75.15 Crores, up 19.3% YoY (from ₹63.00 Crores in Q1 FY25-26). Key concall takeaways from Orbit Exports Ltd's Q1…
Lux Industries Ltd (Q1 FY27)
290.9 crores, +8.43% YoY . Key concall takeaways from Lux Industries Ltd's Q1 FY27 earnings call — and how it ranks against sector peers.

Compare:vs Page Industries vs K P R Mill Ltd vs Welspun Living

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →