RSWM Ltd

- RSWM Limited has a term loan of around ₹650 crore as of 31st January 2024. - Post-acquisition, term loan may increase but is expected to be around ₹725 crore after repayments, not ₹800 crore. - Current maturities of about ₹50 crore due for repayment by March will be paid from internal accruals and non-DP assets. - No explicit mention of fresh equity fundraising during the call. - Plans for future CAPEX, especially in solar and wind power to reduce power costs, were mentioned but without specific financing details. - Company is closely monitoring working capital and bank limits to manage cash flows during the challenging period. - The recent rating outlook revision to negative is expected to have minimal impact on cost of borrowing. - Overall, no direct announcement of new debt or equity fundraising in the discussed period.

- RSWM Limited has made an acquisition of the spinning, knitting, and processing undertaking of Ginni Filament Limited at Chhata, adding substantial production capacity including around 80,000 ring spindles, 720 rotors, and significant daily outputs for knitted fabric and processing. - The acquisition includes 5.4 MW rooftop and ground-mounted solar setups, highlighting a focus on environmental sustainability. - The company acknowledges partial refurbishment needs for the acquired plant but notes many machines are in good condition; modernization CAPEX is planned when suitable. - RSWM is continuously investing in power cost reduction through renewable sources, including the acquisition of 20 MW wind capacity (BG Wind Power Limited) and a 5.4 MW solar capacity from Ginni acquisition. - Further efforts and plans to reduce power costs via solar and wind are underway but specifics will be disclosed at an appropriate time. - No immediate plans for further expansions in the knitting segment; focus is currently on consolidating existing capacities.

- Business environment improved post-December, indicating a good market outlook from March and April onwards. - Export order booking is strong, with approximately 267 containers ordered in January for March-April delivery. - Denim business is performing well with around 96% capacity utilization. - Knit fabrics utilization is improving at 65-70%, with plans to consolidate new knitting capacity before expansion. - Anticipated surge in market demand starting February, with optimism for FY24-25 across yarn, knitting, and denim segments. - Strategic acquisition of Ginni Filament Limited adds significant production capacity and customer base, supporting growth. - Focus on optimizing product mix and increasing production capacity while enhancing value addition. - Expect gradual increase in export volumes over the next 2-3 months with selective order booking to manage profitability.

- RSWM Limited expects a market surge from February onwards, with optimism for FY24-25 across yarn, knitting, and denim segments. - The denim business is performing very well, with capacity utilization at around 96%, higher than competitors. - The recent acquisition of Ginni Filament Limited adds significant capacity (80,000 ring spindles, 720 rotors, fabric processing units), expected to improve top line and EBITDA. - Synergies from the acquisition are predicted to enhance EBITDA and earnings growth, supporting financial stability and boosting EPS. - Strategic focus includes optimizing product mix, increasing production capacities, and improving value addition. - Completed CAPEX prepares the company to meet anticipated demand in upcoming quarters. - Overall, management is hopeful for better profitability and operational performance going forward despite current challenges.

- As of January, RSWM Limited had export orders of approximately 267 containers scheduled for supply in February, March, and April. - These 267 containers consist of different product mixes, mostly 40-feet containers. - The management did not provide a specific valuation or expected margins for these orders due to the varied product mix and lack of detailed data at the time. - Order booking for subsequent periods, beyond these 267 containers, is ongoing and showing positive signs, especially in export markets. - The business environment has improved post-December, with expectations of a good market from March and April onwards. - Export orders are increasing gradually, and domestic markets are stable though less profitable currently. - Overall, the company is optimistic about increasing utilization and better market conditions in the near future.