RSWMNSE14 August 2019

RSWM Limited has informed the Exchange regarding Investor Presentation on the Unaudited Financial Results of the Company for the Quarter ended 30th June, 2019.

RSWM Limited

Limited

an LNJ Bhilwara Group Company

RSWM/ August 14, 2019

PROUD TO BE INDIAN PRIVILEGED TO BE GLOBAL

BSE Limited Corporate Relationship Department, 1st Floor, New Trading Ring, Rotunda Building, P.J. Towers, Dalal Street, MUMBAI - 400 001.

National Stock Exchange of India Limited Listing Department, Exchange Plaza, C-1, Block - G, Bandra-Kurla Complex, Sandra (East), MUMBAI - 400 051.

Scrip Code: 500350

Scrip Code: RSWM

Sub: Investors presentation on the unaudited Financial Results of the Company for the quarter ended 30th June, 2019.

Dear Sir,

Please find enclosed a copy oflnvestors Presentation on the unaudited Financial Results of the

Company for the quarter ended 301

h June, 2019 for your information and record.

Thanking you,

Yours faithfully, For RSWM LIMITED

SURENDER GUPTA COMPANY SECRETARY FCS-2615

rswm .investor@ lnjbhilwara.com

Encl.: As above

(Formerly Rajasthan Spinning & Weaving Mills Limited)

Corporate Office : Bhilwara Towers, A-12, Sector-1 Naida - 201 301 (NCR-Delhi), India Tel : +91-120-4390300 (EPABX) Fax: +91-120-4277841 Website: www.rswm .in GSTIN: 09AAACR9700M1Z1

Regd. Office: Kharigram, Post Office Gulabpura - 311 021 Distt. Bhilwara, (Rajasthan), India Tel : +91-1483-223144 to 223150, 223478 Fax: +91-1483-223361, 223479 Website: www.lnjbhilwara.com GSTIN: 08AAACR9700M1Z3

Corporate Identification Number: L 17115RJ1960PLC008216

An LNJ Bhilwara Group Company

Q1 FY20 Performance

Q1 FY20 Financial Highlights

` in Cr.

Total Income

716

759

Q1 FY19

Q1 FY20

PBT

33.61

3.12

EBIDTA

Q1 FY19

Q1 FY20

Series1

PAT

27.58

2.37

100 80 60 40 20 0

Q1 FY19

Q1 FY20

Q1 FY19

Q1 FY20

800

700

600

500

400

300

200

100

Profitability Highlights

` in Cr.

Total Income (Incl. other income) Raw Material Cost Employee Cost Other Expenses

Inc./Dec. in Inventory EBIDTA EBIDTA Margin (%) Depreciation Finance Cost Profit Before Tax Tax Net Profit After Tax

Q1 FY20 759.40 428.57 90.58 165.11

-20.68 95.82 6.09% 32.61 29.60 33.61 6.03 27.58

Q1 FY19 716.21 414.11 89.95 167.82

-18.47 62.80 8.80% 30.09 29.59 3.12 0.75 2.37

FY19 2991.78 1712.67 352.18 663.85

53.07 210.01 7.09% 123.28 119.52 -32.79 -8.52 -24.27

FY18 2979.28 1736.44 364.52 652.95

-37.72 263.09 8.94% 124.48 117.29 21.32 6.82 14.50

Net Profit Margin (%)

3.94%

0.30%

-0.82%

0.49%

Balance Sheet Highlights

`in Cr.

Assets

Non-current Assets

Fixed Assets

Investments Other Non-current Assets

30.06.19 31.03.19

`in Cr.

30.06.19 31.03.19

Liabilities

1319

1118

181

1433

1144

Shareholders' Fund

Share Capital

270

Reserve & Surplus

Non-current Liabilities

Long Term Borrowing Other Non-current Liabilities

752

728

610

523

783

759

661

573

Current Assets

1059

1105

Inventories

Trade Receivable

Other Current Assets

455

396

208

432

453

220

Current Liabilities

1016

1094

Short Term Borrowing

Other Current Liabilities

606

410

665

429

Total Assets

2378

2538

Total Liabilities

2378

2538

Key ratios

Balance sheet ratios

Q1 FY20 Q1 FY19

FY19

FY18

DE ratio excl CPTL DE ratio incl CPTL debt service coverage ratio (DSCR) interest coverage ratio (ISCR) current ratio current ratio incl CPTL

return on capital employed (%) return on net worth (%) return on sales (%) EBITDA margin %

basic EPS (₹)* cash EPS (₹)*

1.33 1.58 1.15 3.24 1.28 1.04

10.63 14.66 3.94 13.68

11.71 28.12

1.35 1.51 1.01 2.12 1.17 1.02

4.80 1.04 0.33 8.84

1.43 1.69 0.79 1.76 1.24 1.01

3.42 -3.10 -0.82 7.09

1.41 1.56 0.66 2.24 1.13 1.01

5.11 1.61 0.49 8.94

1.01 14.10

-10.30 38.42

6.16 61.91

Earning Ratio

EPS

Current Market Scenario and outlook (Yarn)



Fiscal 2019 started on a healthy note with a considerable surge in exports of cotton yarn to China which more than made up for subdued cotton yarn offtake in the domestic market. An uptick in Chinese exports was primarily owing to US-China trade disruption. Reports suggest that cotton crop yields hit a three-year low in the October 2018-March 2019 season. India is the second largest producer of Manmade Fibre (MMF) and Filaments globally after China. Domestic MMF demand witnessed an uptick in 2017-18 on account of the release of pent up demand post the demonetisation and GST implementation with consumption increasing by about 3.6% y-o-y in 2017- 18 vis-à-vis a decline of about 7.5% witnessed during the corresponding period in the previous year.

 We are putting more thrust on sale of value added & new products to

protect bottomline.

Current Market Scenario and outlook (Denim)

 There is a tremendous oversupply situation in the Indian denim industry. This is sharply affecting demand patterns. Denim fabric manufacturing is growing in the unorganised segment. Number of denim units have moved to 46, from 30 in 2012.Capacity has increased to 1500 million metres per annum from 800 million metres per annum. Another 150 million metres per annum is in pipeline. Estimated Domestic market size is 750 to 800 million metres per annum and Export market size is estimated at 200 million metres per annum.

 The overall capacity utilisation in the industry is low, as domestic brands and dealers are challenged with increased inventories and low retail offtake. Buying patterns have altered drastically. Most units are understood to have temporarily shut down a part capacity, therefore running at capacity utilisation of 70%

 The influx of imported denim fabrics in an already saturated market is causing further drop of

demand.

 Indian branded garmenters are moving their production to Bangladesh, as importing garments has become easier. Brand buying in India has been severely affected, as large number of imported garments are getting placed on retail shelfs, at lower costs.

 Denim fabric export has been sluggish, prices under high pressure, as sales for International brands too are slower than last season. Roll over of seasonal orders, delay in garment manufacturing cycles have a negative impact on fabric demand.

Opportunities (Denim)

 The large format retailers in India – Reliance, Future Lifestyles, Madura Lifestyle Fashions, Myntra are yet churning our large volumes for their quickly increasing shelf space. Though the price points remain challenging, this arena is now major focus for growth.

 Our focused attention is to further increase our share in National and International brands

who are procuring fabrics within India.

 Large format retailers and offline retailers are increasingly searching for full garment

package solutions.

LNJ Bhilwara Group – At a glance

LNJ Bhilwara Group - Diversified presence across sectors

 Set up in 1961 by Mr. L.N.Jhunjhunwala, today LNJ Bhilwara Group has grown into a conglomerate with a strong global presence and turnover of over Rs.8000 Crore.

Textiles RSWM Ltd. Maral Overseas BSL Ltd. Bhilwara Technical Textiles Ltd. BMD Pvt. Ltd.

Power Bhilwara Energy Limited Malana Power Co. Ltd. AD Hydro Power Ltd. NJC Hydro Power Ltd. Balephi Jal-vidyut Co. P. Ltd.-Nepal

Power Consultancy

 Indo Canadian Consultancy

Services Ltd.

Graphite Electrodes

 HEG Limited

Information Tech.  Bhilwara Infotechnology

Ltd.

LNJ Bhilwara Group - Diversified Presence

 6 Group companies listed on the Stock Exchanges.

 Over 1,000,000 stake holders in the Group.

 Production units & Corporate office spread across the

country at 38 locations

 All key companies ISO certified

 Over 28,000 strong workforce.

RSWM Ltd. – At a glance

RSWM – Overview

 Flagship company of LNJ Bhilwara Group

 Incorporated in 1960

 One of the largest textile manufacturers of Synthetic, Blended,

Mélange, Cotton, Speciality and Value added yarns. Also

manufacturing Fabrics, Denim and Green Polyester Fiber.

 Exports to over 78 countries

 ‘Golden Trading House’ status

 Sales Office and Distribution Network across the country

RSWM – Overview

Installed Capacity

 43000 MTs p.a. Green Polyester Fiber manufacturing capacity

 445192 Spindles and 4800 Rotors Spinning

 12 million meter p.a. PV Fabric (117 Looms)

 24 million meter p.a. Fabric Processing

 25 million mtrs p.a. Denim Fabric manufacturing capacity -Composite Facility

(Spinning+Weaving+Processing+Dyeing)

 46 MW Thermal Power, 22 MW Solar Power

Recycled Fiber

Spinning

Weaving

Processing

Branding

RSWM – Journey  1960 – Company incorporated and in 1961 established a spinning unit at

Bhilwara.

 1973 - Second plant commissioned at Gulabpura. Later, Bhilwara plant was

spun off as independent Company (Bhilwara Spinners Ltd.)

 1989 - Established grey yarn spinning unit at Banswara.

 1994 - Established Melange Yarn manufacturing unit at Mandpam, Bhilwara

 2003 - Acquired Rishabhdev plant from HEG Ltd.

 2005 - Acquired Jaipur Polyspin Ltd., Reengus and Mordi Textiles &

Processors Ltd. Banswara

 2006 – 2007 Completed an ambitious expansion plan with capital cost of

Rs.700 Crore. Set-up Composite Denim Fabric unit, Captive Thermal Power

Plant of 46 MW, Expansion of capacity at all the existing locations.

RSWM – Journey

 2011 – 2012 Executed another expansion plan with capital outlay of Rs. 400

Crore. Expanded capacity at Kharigram (SJ-11), Banswara (Rotors), Denim

(Spinning), Mordi (50 Looms).

 2014 - Established a Green Fiber manufacturing unit at Reengus with

capacity of 18000 MTs p.a.

 2014 - CTL – Bagalur merged into RSWM.

 2015 – Added another Melange Yarn unit at Kanyakheri, Bhilwara.

 2017 – Installation of Sheet Dyeing facility at Denim

 2017 - Comissioned 3.3 MW Rooftop Solar Power Plant at Mandpam and

Kanyakheri.

 2018-19 – 18.7 MW Solar Power Plant and 25000 MTs p.a. Green Fibre

Certifications

 ISO 9001:2015 : Quality System Certification

 ISO EMS - 14001:2015 : Environment Management Certification

 OHSAS - 18001: 2007 : Health and Safety Certification

 SA- 8000:2015 (certified by BSI) : Social Accountability

 ISO EnMS – 5001 : 2012: Energy Management Systems

 Oeko-Tex-100 (certified by Hoihenstein) : Human Ecological Certification

 GOTS : Global Organic Textile Standard

 GRS : Global Recycle Standard

 Organic Cotton Fair Trade Standards.

Synthetic Yarns –

Melange Yarns -

Fabrics -

Denim -

Product Portfolio

Grey/Dyed PV Blended, Poly 100%, Visc. 100%, Poly/Visc/Cotton Blended Specialty Yarns from unorthodox fibres like Bamboo, Bamboo-charcoal, Flex, Lycra, Tencel, Trevira CS, Birla Modal, Protex, X-static, Beltron, Huvis FR polyester etc.

High value cotton yarn, combining two or more fibres largely considered fancy yarn used in casual wear, sports wear, business suits, shirts, bed linen, decorative fabrics and other high end home furnishings.

PV Fabrics, FR Fabrics, Oil and Water repellent fabrics.

Capable of processing 3000+ denim variants. Manufacturing normal denim, value added denim range comprises denim-out- of-denim (recycled denim), work wear like anti-bacterial, hydrophobic, anti odour, fire retardant, power stretch, plasma denim. Rich blended denims like cotton with linen, cotton with Kashmir wool, cotton with viscose and 100% tencel.

Branding

Melange

Yarns

Edge

Ultima

Ultra

cannello

verona

LNJ Denim

Fabrics

Denim

Manufacturing Units

1. Spinning Unit

2. Spinning Unit 3. Spinning Unit 4. Spinning Unit

5. Green Fibre Unit

6. Spinning Unit 7. Spinning Unit 8. Fabric Unit 9. Denim Unit

- - -

- - - -

Kharigram, P.O. Gulabpura, Dist. Bhilwara, Rajasthan Village Lodha, Banswara, Rajasthan Rishabhdev, Dist. Udaipur, Rajasthan Reengus, SP-1, Industrial Area, Reengus, Dist. Sikar, Rajasthan Reengus, SP-1, Industrial Area, Reengus, Dist. Sikar, Rajasthan Mandpam, Bhilwara, Rajasthan Kanyakheri, Bhilwara, Rajasthan Village Mordi, Banswara, Rajasthan Village Mordi, Banswara, Rajasthan

Captive Power Plants 1. 46MW Thermal Power Unit 2. 22 MW Solar Power

- -

Village Mordi, Banswara, Rajasrthan Mandpam, Kanykheri, Kharigram, Mordi

Kharigram Unit

Installed Capacity Product

: 167792 Spindles : Blended synthetic grey/dyed yarns (p/v yarn, 100%

Production

Viscose, 100% polyester, acrylic), Slub Yarn, Core-spun, Compact yarn : 52000 MTs p.a.

Banswara Unit

Installed Capacity Product

Production

: 95376 Spindles and 3120 Rotors : Blended synthetic & cotton grey yarns (p/v yarn, p/c yarn, 00% viscose, 100% polyester) Slub, Compact, Core-spun yarn : 36500 MTs p.a.

Rishabhdev Unit

Installed Capacity Product

: 52848 Spindles : Blended synthetic grey yarns (p/v yarn, 100%

Production

: 18500 MTs p.a.

Viscose, 100% Polyester)

Reengus Unit

Installed Capacity Product

: 32840 Spindles : Blended synthetic grey/dyed yarns (p/v yarn, 100% Viscose, 100% polyester, acrylic), Slub Yarn, Core- Spun, Compact yarn

Production

: 12000 MTs p.a.

Green Fibre Unit

Installed Capacity Product Production

: 44000 MTs p.a. : Recycled Polyester Fibre : 43000 MTs p.a.

Mandpam Unit

Installed Capacity Product Production

: 49152 Spindles : Cotton Melange Yarn : 10000 MTs p.a.

Kanyakheri Unit

Installed Capacity Product Production

: 25920 Spindles : Cotton Melange Yarn : 4500 MTs p.a.

Fabric Unit

Installed Capacity Product

: 117 Looms : Fabrics (PV fabric, PC fabric, Flame Retardant and

Production

: 12 Million Mtr. p.a.

other value added fabrics)

Denim Unit

Installed Capacity

: 136 Looms with matching spinning, dyeing and

processing capacity

Product Production

: Denim Fabrics (3000+ denim variants) : 25 Million Mtrs. p.a.

RSWM Ltd. – Performance

Financials (`in Crore)

Description Turnover EBIDTA EBDT EAT Fixed Assets ( Net ) Net Worth Long Term Loans Working Capital Loans Total Debt Operating Profit Margin % Return on Capital Employed %(PBIT/Capital Emp.) Return on Sales % ( PAT/ Turnover ) Return on Net Worth % Long Term Debt Equity Ratio (TL/NW) Debt Equity Ratio (Total Debt/NW) Interest Cover Ratio Fixed Assets Cover Ratio EPS (IN Rs.)

2014-15 3,014 377 252 85 1,161 445 669 447 1,117 12.52

11.88 2.82 19.08 1.50 2.51 3.01 1.73 36.68

2015-16 2,945 423 297 107 1,143 552 564 626 1,189 14.35

12.36 3.63 19.37 1.02 2.27 3.36 2.03 46.20

2016-17 2,996 358 248 101 1,190 633 497 723 1,220 11.94

9.44 3.37 15.95 0.78 2.12 3.24 2.40 43.33

2017-18 2,943 263 146 15 1,138 901 571 820 1,391 8.94

5.11 0.49 1.61 0.63 1.56 2.24 1.99 6.16

2018-19 2,961 210 90 (24) 1,144 783 573 665 1,238 7.09

3.42 (0.82) (3.10) 0.73 1.69 1.76 2.02 (10.30)

Segment-wiseTurnover

Qty

– Yarn: Lac Kg. Fabric/Denim Lac Mtr.

Amt.

- ` in Crore

2014-15

2015-16

2016-17

2017-18

2018-19

Segment

Qty

Amt

Qty

Amt

Qty

Amt

Qty

Amt

Qty

Amt

Yarn

1345

2564 1392 2497

1420

2513

1349

2472

1297

2504

Denim

157

286

163

297

191

324

203

325

202

320

Fabric

152

165

138

151

127

160

114

146

137

Total

3014

2945

2996

2943

2961 33

Turnover

Rs. in Crore

3014.31

2996.20

2944.79

2943.09

2960.58

3100

3000

2900

2800

2700

2600

2500

2014-15

2015-16

2016-17

2017-18

2018-19

EBIDTA

` in Crore

422.7

377.45

357.87

263.08

210.01

450

400

350

300

250

200

150

100

2014-15

2015-16

2016-17

2017-18

2018-19

PAT

` in Crore

106.95

100.97

84.91

14.50

2014-15

2015-16

2016-17

2017-18

2018-19

-24.27

120

100

-20

-40

EPS

46.20

42.68

43.33

36.68

Dividend Payout

Rs. in Crore

6.16

28.94

29.44

1 23.15 125%

100%

125%

4.71

20%

2013-14 2014-15 2015-16 2016-17 2017-18

Net Worth

Rs. in Crore

901.00

783.00

633.00

552.00

445.00

1000

900

800

700

600

500

400

300

200

100

5 1 / 3 0 / 1 3

6 1 / 3 0 / 1 3

7 1 / 3 0 / 1 3

8 1 / 3 0 / 1 3

9 1 / 3 0 / 1 3

Textile Industry – Overview

Textile Industry - Overview

2nd Largest Employer in India. Employs around 40 Mn workforce directly and 40 Mn. Indirectly

14% Contribution to Industrial Production of country.

4% Contribution to India’s GDP

16% Contribution to Exports Earnings

22% of World Spindles Capacity 48 MN SPDL & 8Lac Rotors

Highest # looms in World 47.8 Lac

World’s # 1 Producer & IInd largest exporter of Jute

World’s # 2 Producer of Silk (18% of world silk prod.)

World’s # 2 Producer of Cotton

World’s # 3 Sheep Population

Raw Material Price Trend (`/Kg)

Month

Mar.17

Jun.17

Jul.17

Sep.17

Oct.17

Dec.17

Jan.18

Mar.18

May.18

Jun.18

Jul.18

Sep.18

Nov.18

Dec.18

Mar.19

POLYSTER VISCOSE

COTTO N

125

124

123

120

112

120

119

122

137

140

137

133

129

126

100

116

101

159

161

164

166

170

167

180

160

140

120

100

159 159 159 161 161 161 161

164 164 166 166

170 170

167 167

125 124 123

120

120 119

122

112 112

137

140

137

133

129

126

116 116

100 100

101

COTTON

POLYSTER

VISCOSE

M a r . 1 7

J u n . 1 7

J u

l . 1 7

S e p . 1 7

O c t . 1 7

D e c . 1 7

J a n . 1 8

M a r . 1 8

M a y . 1 8

J u n . 1 8

J u

l . 1 8

S e p . 1 8

N o v . 1 8

D e c . 1 8

M a r . 1 9

RSWM Ltd. – Standing with its Strengths

RSWM – Strengths

•

Integrated operations. Fibre Mfg. -> Dyeing-->Spinning-->Yarn Dyeing-->Weaving—>Processing & Finishing-->Fabric Dyeing

• Economy of Scale

•

43000 MT p.a. PSF manufacturing, 35000 MT p.a. fibre/yarn dyeing, 445192 spindles, 4800 Rotors, 12 million meter (117 Looms) fabric, 24 milion meter fabric processing, 25 million meter Denim fabric Latest Technology. Incurred Rs.1500 Crore under TUFS till now

• Established Quality

Lowest quality claims

• Across the Globe Presence

Exports to more than 78 countries

• Diversified Product Basket

•

Grey and Dyed yarns - Cotton/Cotton blended/Synthetic blended/ PV/ Poly100/ Visc.100/Acrylic/ Fabric/FR products/fabric for work wears/Denim etc. Full Package Sell One stop solution

• People Development

RSWM has strength of more than 16000 skilled workforce

RSWM – Mitigating Challenges

 Invested around Rs.1500 Cr under TUFS and Rs.550 Cr Non-TUFS in last

11 years

 Added 2.25 lac Spindles, 4800 Rotors, 64 Looms, 25 million meter p.a.

capacity Denim unit, 46MW CPP,

22MW Solar, Yarn/Fibre Dyeing and

43000 MT Green Fibre Manufacturing unit

 Also added various value addition equipment like slub yarn attachment, core-

spun yarn attachment, compact yarn attachment

 Branding of yarns like Ultima and Edge.

 Regular technology up-gradation and automation to improve operational

efficiencies

 Established NPDs (New Product Development Cells in each business)

 Increase in spending on R & D in last 5 years. Incurred Rs.16 Cr on R & D

during 2017-18. Increase of around 300% from Rs.5.4 Cr. in 2011-12 44

•

Corporate Governance

RSWM recognises Corporate Governance not as a set of rules but as a framework supporting the core values.

Good Governance helps us to maintain trust with the shareholders, stakeholders, employees and society at large

RSWM believes that good governance is the key to doing business in a sustainable manner, which creates value for the society

The Company is managed by its Board of Directors, which formulates strategies & policies and carries out periodic review of its performance

Board of Directors:

- Mr. Ravi Jhunjhunwala - Mr. Shekhar Agarwal - Mr. Riju Jhunjhunwala - Mr. B. M. Sharma - Mr. Arun Churiwal - Dr. Kamal Gupta Mr. Amar Nath Chaudhary - - Mr. P.S. Dasgupta - Mrs. Archana Capoor - Mr. Deepak Jain

Chairman Vice Chairman Managing Director & Chief Executive Officer Jt. Managing Director Director Independent Director Independent Director Independent Director Independent Director Independent Director

Corporate Information

Key Managerial Persons Mr. Riju Jhunjhunwala- Mr. B. M. Sharma - Mr. Surender Gupta-

Managing Director & CEO Jt. Managing Director & CFO Company Secretary

Corporate Office, Noida

Business Heads and Key Executives Mr. S.C.Garg- Mr. Suketu Shah- Mr. Prakash Maheshwari- Chief Executive (Corp.Affairs & TPP) Mr. Rajeev Jain- Mr. J.K. Manghani -

Chief Executive (Melange Yarn) Chief Executive (Denim)

Business Head (Yarn) Dy. CFO

Auditors S. S. Kothari Mehta & Co., New Delhi Lodha & Co., New Delhi

Registered Office Kharigram, P.O. Gulabpura – 311 021 Dist. Bhilwara (Rajasthan)

Corporate Office Bhilwara Towers, A-12, Sector - 1 Noida – 201 301 (U.P.)

Corporate Information

For further information, please contact:

Shri J. K. Manghani Dy. CFO Tel: 01483 222515 Cell: 9414018382 Email: jk.manghani@lnjbhilwara.com

Shri Surender Gupta Company Secretary Tel: 0120 4390058 Cell: 9818646484 Email: skg@lnjbhilwara.com

Shri Rakesh Jain DGM – Corporate Finance Tel: 01483 222118 Cell: 9413356091 Email: rakeshk.jain@lnjbhilwara.com

DISCLAIMER This presentation is the property of RSWM Limited (the “Company”) and is strictly confidential. It contains information intended only for the person to whom it is transmitted. With receipt of this information, recipient acknowledges and agrees that: (i) this document is not intended to be distributed, and if distributed inadvertently, will be returned to the Company as soon as possible; (ii) the recipient will not copy, fax, reproduce, divulge, or distribute this confidential information, in whole or in part, without the express written consent of the Company; (iii) all of the information herein will be treated as confidential material with no less care than that afforded to its own confidential material. This presentation is for informational

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RSWM Limited has informed the Exchange regarding Investor Presentation on the Unaudited Financial Results of the Company for the Quarter ended 30th June, 2019.

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