RSWM to enhance yarn production capacity

27 Jul '06

3 min read

Rajasthan Spinning and Weaving Mills Limited (RSWM), a leading integrated player in the textiles sector in India, today announced its un-audited results for the quarter ended 30 June 2006.

Commenting on the financial results, Mr. Riju Jhunjhunwala, Joint Managing Director, Rajasthan Spinning and Weaving Mills Limited, said:

“We are pleased to report that FY2007 has commenced on a positive note. The yarn sector is witnessing better local and global demand trends which are expected to continue for rest of FY2007. “

Click here to view detail announcement.

Q1 FY2007 v/s Q1 FY2006 performance synopsis:
The Company reported strong operational and financial performance in Q1FY07. Net revenues increased by 20.4 percent to Rs. 2,393.4 million from Rs. 1,988.3 million in Q1FY2006. PBIDT was higher by 42.3 percent at Rs. 248.8 million while PBT witnessed a substantial improvement of 179.3 percent to Rs. 87.7 million.

Cash profits also saw a significant rise of 56.0 percent to Rs. 202.3 million while net profits for the quarter increased to Rs. 53.8 million up 51.1 percent from the corresponding quarter last year. EPS higher at Rs. 2.3 and CEPS was better at Rs. 8.7 during the quarter.

Update on capex initiatives:
The Company has laid out its capex plans for the next three years (from FY2007 to FY2009); this includesphase II and phase III of modernization and expansion announced earlier. RSWM expects to invest Rs. 9,000 million over the next three years in enhancing yarn capacities, establishing thermal power plant, setting up denim operations, and regular capex requirements.

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