Corporate Update

RSWM first quarter PAT up 59%

Rajasthan Spinning and Weaving Mills (RSWM), a leading integrated player in the textiles sector in India, has announced its unaudited results for the quarter ended June 30, 2005. Net revenues were higher by 7.1% to Rs 1,753.3 million. Operating earnings also improved by 24.7% to Rs 169.4 million from Rs 135.8 million. Commenting on the financial results, Mr Riju Jhunjhunwala, joint managing director, RSWM, said: “The current quarter indicates stable results from continuing operations. Most of our expansions and modernization plans have been implemented and are in the process of stabilization, which should enable better performance in the coming quarters.” Although our business remains strong, the inverted duty structure in the CENVAT chain is resulting in accumulation of unutilized duty credits, which is being charged against our profits. The operating environment in the quarter was also subdued but there has been some improvement towards the end of the quarter, which we believe should continue going forward. Overall, the outlook is positive, especially given the future benefits that we will derive from a larger operating base going forward”, Mr Jhunjhunwala added.

PBT was higher by 92.2% to Rs 41.9 million. PAT was better by 59.0% to Rs 43.1 million, resulting in an EPS of Rs 1.97 for the quarter. Cash profits were higher by 14.0% to Rs 124.7 million and cash EPS was Rs 5.92. Revenues from yarn operation were higher by 5.5% to Rs.1,596.4 million and fabric revenues were up by 16.4% to Rs 239.5 million.