RSWMNSE12 February 2020

RSWM Limited has informed the Exchange regarding Investor Presentation

RSWM Limited

1 Ii.,(\ rn 11 Limited

an LNJ Bhilwara Group Company

RSWM/ February 12, 2020

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, Bandra (East), MUMBAI - 400 051.

Scrip Code: 500350

Scrip Code: RSWM

Sub: Investors presentation on the Unaudited Financial Results of the Company for the quarter and nine months ended 31st December, 2019.

Dear Sir,

Please find enclosed a copy of Investors Presentation on the Unaudited Financial Results of

the Company for the quarter and nine months ended 31st December, 2019 for your information

and record.

Thanking you,

Yours faithfully, For RSWM LIMITED

~ SURENDER GUPTA

COMPANY SECRETARY FCS-2615

rswm. i nvestor@ I n j bh i lwara.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

9M FY20 Performance

Q3 & 9M FY20 Financial Highlights ` in Cr.

Total Income

EBIDTA

2163

2181

698

768

250.0

150.0

50.0

62.1

21.6

211.7

152.6

-50.0

Q3 FY19 Q3 FY20

9M FY19 9M FY20

Q3 FY19 Q3 FY20

9M FY19 9M FY20

EBT

2.6

28.2

Q3 FY19 Q3 FY20

9M FY19 9M FY20

-40.6

-28.3

30.0

20.0

10.0

0.0

-10.0

-20.0

-30.0

PAT

26.2

2.0

Q3 FY19 Q3 FY20

9M FY19 9M FY20

-28.5

-18.1

2500

2000

1500

1000

500

40.0

20.0

0.0

-20.0

-40.0

-60.0

Profitability Highlights

` in Cr.

Q3 FY20

Q3 FY19

9M FY20

9M FY19

FY19

Total Income (Incl. other income) Raw Material Cost

Employee Cost

Power Cost Other Expenses

Inc./Dec. in Inventory

EBIDTA EBIDTA Margin (%)

Depreciation Finance Cost

Profit Before Tax Tax

Net Profit After Tax

767.58 380.27

93.37

86.18 97.99

47.66

62.11 8.16%

33.30 26.26

2.55 .53

2.02

698.44 427.98

86.39

88.92 72.05

1.53

21.57 3.13%

30.84 31.35

-40.62 -12.09

-28.53

2233.80 1220.69

278.44

267.36 253.42

2.16

211.73 9.81%

99.20 84.30

28.23 2.02

26.21

2163.36 1280.57

266.98

268.04 230.61

-35.42

152.58 7.13%

91.00 89.87

-28.29 -10.21

-18.08

Net Profit Margin (%)

0.27%

-4.14%

1.21%

-0.84%

2991.78 1712.67

352.18

356.86 306.99

53.07

210.01 7.09%

123.28 119.52

-32.79 -8.52

-24.27

-0.82% 4

31.12.19 31.03.19 ` in Cr.

31.12.19 31.03.19

Balance Sheet Highlights

` in Cr.

Assets

Non-current Assets

Fixed Assets

Investments Other Non-current Assets

Liabilities

1433

Shareholders' Fund

1144

Share Capital

270

Reserve & Surplus

Non-current Liabilities

1164

1061

Current Assets

995

1105

Inventories

Trade Receivable

Other Current Assets

409

398

188

432

453

220

Long Term Borrowing Other Non-current Liabilities

Current Liabilities

Short Term Borrowing

Other Current Liabilities

727

703

501

429

931

494

437

783

759

661

573

1094

665

429

Total Assets

2159

2538

Total Liabilities

2159

2538

Key ratios

Balance sheet ratios

9M FY20 9M FY19

FY19

FY18

fixed asset cover ratio 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 %

1.73 1.13 1.39 0.79 2.51 1.33 1.07

6.95 4.80 1.21 9.81

1.66 1.28 1.49 0.76 1.70 1.08 0.91

3.00 -2.61 -0.84 7.13

1.47 1.43 1.69 0.79 1.76 1.24 1.01

3.42 -3.10 -0.82 7.09

basic EPS (₹)* cash EPS (₹)*

11.13 54.11

-7.68 26.63

-10.30 38.42

1.62 1.41 1.56 0.66 2.24 1.13 1.01

5.11 1.61 0.49 8.94

6.16 61.91 6

Earning Ratio

EPS

Current Market Scenario and outlook (Yarn)



The export of cotton yarn in the first six months of this financial year declined 39 per cent. The continuous fall in cotton yarn exports since start of this year has raised concerns in the textile industry. Increase in raw cotton prices, import duty by importing countries and no export benefits on cotton yarns has increased the cost of Indian yarn as compared to competing countries. Increased crop in current season has reduced cotton prices in Q3. Prices expected to remain stable with sufficient availability. India is the second largest producer of Manmade Fibre (MMF) and Filaments globally after China. Domestic manmade yarn demand witnessed an uptick in Q2 which continued in Q3 also. Domestic demand of cotton and manmade yarn expected to increase further in Q4 due to uniform season.

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

bottomline.

Current Market Scenario and outlook (Denim)  Oversupply situation in the Indian denim industry affecting demand patterns.  The overall capacity utilisation in the industry is low, patterns have altered

drastically.

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

disturbing.

 Denim fabric export has been sluggish, prices under high pressure.  With the changes in product mix, value additions, increased customer base and rationalisation of operational costs, we have been able to revive our denim business in 9 months of current fiscal.

 Currently operating at 100% capacity.  Performance of denim business improved significantly in Q3.  The large format retailers in India – Reliance, Future Lifestyles, Madura Lifestyle Fashions, Myntra churning large volumes for their quickly increasing shelf space, though the price points remain challenging

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.

Product Portfolio

Synthetic Yarns – Grey/Dyed PV Blended, Poly 100%, Visc. 100%,

Melange Yarns -

Fabrics -

Denim -

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

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 (Rs./Kg)

Month

Mar.18

Jun.18

Sep.18

Nov.18

Dec.18

Mar.19

Apr.19

May.19

Jun.19

Jul.19

Aug.19

Sep.19

Oct.19

Nov.19

Dec.19

COTTO N 119

137 137 133 129 126 134 127 130 127 121 119 111 110 110

POLYSTER VISCOSE

100 116 116 97 101 101 98 86 90 83 84 82 81 81

164

166 170 170 167 167 167 167 167 167 167 167 167 167 167

180

160

140

120

100

170

164

166

167

137

133

134

129

126

130

127

119

116

100

101

121

119

111

110

COTTON

POLYSTER

VISCOSE

M a r . 1 8

J u n . 1 8

S e p

. 1 8

N o v . 1 8

D e c . 1 8

M a r . 1 9

A p r . 1 9

M a y . 1 9

J u n . 1 9

J u

l . 1 9

A u g . 1 9

S e p

. 1 9

O c t . 1 9

N o v . 1 9

D e c . 1 9

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

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

Chief Executive (Melange Yarn) Business Head (Yarn) Chief Executive (Denim & Fabric) Dy. CFO

Corporate Office, Noida

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

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