Any current/future new fundraising through debt or equity?

There is no current plan for new fundraising through equity or debt as of now. The company is working on a ₹740 crore investment project in Jammu, which is still under discussion. Planning for this investment, including funding options such as rights issue, placement, or QIP, has not started yet. The company intends to finalize and initiate the investment plan only after 31st March 2025, targeting the upcoming financial year. Until then, they are focused on working on a profitable financial model for the investment. No exceptional items or fundraising measures are planned in the near term to i

Future growth expectations in sales/revenue/volumes?

RSWM reported a 15.7% YoY revenue growth in Q2 FY25, reaching ₹1,166 crores, and 24.4% growth in H1 FY25 to ₹2,374 crores. Expansion of product range, including sustainability products, and new customer additions support growth. Fabric division grew 22% YoY, driven by new orders, brand additions, and improved product quality. Export orders and new product portfolios are key growth avenues. Plans underway for a potential ₹740 crore investment project in Jammu, expected post-March 2025, to further expand capacity. AI-driven forecasting and industry 4.0 technologies aim to optimize raw material p

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

RSWM expects **improvement in bottom line** by year-end but is cautious, awaiting next two months to gauge performance (Page 9). No **exceptional items** are currently anticipated to bring profits in black (Page 9). The company aims to **improve EBITDA margins** through cost optimization, reducing finished goods stock, and improving operational efficiencies (Page 7). Revenue growth driven by new acquisitions and expanded product portfolios indicates potential to sustain growth (Page 7). Fabric division profitability expected to **improve in H2 FY25**, driven by demand and market recove

Current/ Expected Orderbook/ Pending Orders?

RSWM Limited is seeing growth driven by new export orders. The company is adding new customers and products to its portfolio, indicating a growing order book. The fabric division, including denim, has seen improvement and is expected to deliver profits in Q3 and Q4 FY25. Orders from more brands are increasing, supporting higher profitability. No specific numbers on the current or expected order book were disclosed in the transcript. Management mentioned ongoing efforts to expand markets and reduce regional dependence, which could positively impact future orders.

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

RSWM is approaching future capital expenditures cautiously given the current environment. No exploration of CapEx other than routine maintenance CapEx is planned at present. The Jammu project, involving a proposed ₹740 crore investment, is still under discussion, with planning to proceed after 31st March 2025. No definitive funding strategy for the Jammu investment has been decided yet; management is working on a profitable financial model. Capital investment is planned to upgrade machinery in spinning units to improve efficiency, but the exact CapEx amount is still under management discussion

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RSWM LtdQ3 FY24Textiles & Apparels

RSWM Ltd Q3 FY24 Earnings Call Analysis

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

Price: ₹192P/E: 11.8Market Cap: ₹734 CrSector: Textiles & Apparels

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

N/A

Order

N/A

Capex

N/A

0 of 2 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→RSWM reported a 15.7% YoY revenue growth in Q2 FY25, reaching ₹1,166 crores, and 24.4% growth in H1 FY25 to ₹2,374 crores.
→Expansion of product range, including sustainability products, and new customer additions support growth.
→Fabric division grew 22% YoY, driven by new orders, brand additions, and improved product quality.
→Export orders and new product portfolios are key growth avenues.
→Plans underway for a potential ₹740 crore investment project in Jammu, expected post-March 2025, to further expand capacity.
→AI-driven forecasting and industry 4.0 technologies aim to optimize raw material procurement and supply chain, enhancing operational efficiency.
→Management is cautiously approaching future CapEx, waiting for improved demand outlook before large expansions.
→Overall strategy focuses on diversifying markets, expanding product offerings, and scaling operations to sustain revenue and volume growth.

Margin guidance

Category 2

→RSWM expects **improvement in bottom line** by year-end but is cautious, awaiting next two months to gauge performance (Page 9).
→No **exceptional items** are currently anticipated to bring profits in black (Page 9).
→The company aims to **improve EBITDA margins** through cost optimization, reducing finished goods stock, and improving operational efficiencies (Page 7).
→Revenue growth driven by new acquisitions and expanded product portfolios indicates potential to sustain growth (Page 7).
→Fabric division profitability expected to **improve in H2 FY25**, driven by demand and market recovery (Page 6).
→AI-driven tools like **cotton forecasting** for cost optimization in raw material procurement are expected to enhance margins (Pages 4-5).
→Expansion plans on hold until demand outlook improves, showing cautious capital expenditure approach (Page 4).
→Overall, management is confident about **sustained growth and operational improvements** leading to better profitability in upcoming quarters (Pages 3-4).

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Fundraise plans

→There is no current plan for new fundraising through equity or debt as of now.
→The company is working on a ₹740 crore investment project in Jammu, which is still under discussion.
→Planning for this investment, including funding options such as rights issue, placement, or QIP, has not started yet.
→The company intends to finalize and initiate the investment plan only after 31st March 2025, targeting the upcoming financial year.
→Until then, they are focused on working on a profitable financial model for the investment.
→No exceptional items or fundraising measures are planned in the near term to impact the bottom line.

Order book

→RSWM Limited is seeing growth driven by new export orders.
→The company is adding new customers and products to its portfolio, indicating a growing order book.
→The fabric division, including denim, has seen improvement and is expected to deliver profits in Q3 and Q4 FY25.
→Orders from more brands are increasing, supporting higher profitability.
→No specific numbers on the current or expected order book were disclosed in the transcript.
→Management mentioned ongoing efforts to expand markets and reduce regional dependence, which could positively impact future orders.

Capex plans

→RSWM is approaching future capital expenditures cautiously given the current environment.
→No exploration of CapEx other than routine maintenance CapEx is planned at present.
→The Jammu project, involving a proposed ₹740 crore investment, is still under discussion, with planning to proceed after 31st March 2025.
→No definitive funding strategy for the Jammu investment has been decided yet; management is working on a profitable financial model.
→Capital investment is planned to upgrade machinery in spinning units to improve efficiency, but the exact CapEx amount is still under management discussion.

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

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1RSWM Ltd

Rev 3Mar 2

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