RSWM Ltd

RSWM Ltd's capital structure is characterized by a high debt-to-equity ratio of 1.46, indicating a significant reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 1.17, suggesting it has just enough current assets to cover its current liabilities. However, the company's operating cash flow is negative at -756.44 million INR, and its capital expenditure is -2.31 billion INR, indicating substantial cash outflows for operations and investments.

In terms of profitability, RSWM Ltd's return on equity is 2.75%, and its return on assets is 0.97%, both of which are below the typical thresholds for strong performance in the Textiles & Leather Goods industry. The company's operating income of 771.40 million INR and net income of 356.54 million INR suggest moderate profitability, but the gross profit margin of 24.12% indicates room for improvement in cost management.

RSWM Ltd's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no significant geographic diversification reported. This concentration may expose the company to higher risks if market conditions in its primary segment or region deteriorate.

The company's growth trajectory is uncertain, with no specific numeric deltas provided for the current or next fiscal year. However, the substantial capital expenditure of -2.31 billion INR suggests ongoing investment in the business, which could support future growth. The risk assessment indicates a low potential for dilution, but the company's high debt levels and negative operating cash flow pose liquidity risks.

Recent events and filings have not been disclosed in the available data, so there is no specific information on recent developments that could impact the company's financial performance or strategic direction.

Revenue grew 20% annually over four years, demonstrating strong top-line expansion despite recent profitability challenges.

Operating income surged 86.3% year-over-year, indicating significant improvement in core operational efficiency and cost management.

Free cash flow improved 95.4% year-over-year, signaling a potential stabilization in cash generation capabilities.

Debt-to-equity ratio of 1.46 is significantly higher than the 0.43 industry median, indicating excessive financial leverage.

The company faces high credit risk, raising concerns about its ability to meet financial obligations and service debt.

Cash conversion ratio of -2.12 ranks in the bottom quartile, reflecting poor ability to convert earnings into cash.

Capex to revenue ratio of -19.7% is in the bottom quartile, suggesting inefficient capital allocation or heavy spending.

Revenue INR 40.58B, +7,1% YoY; Operating income −76,5% YoY.

• ▍Revenue INR 40.58B, +7,1% YoY
• ▍Operating income −76,5% YoY
• ▍Net income −117,1% YoY
• ▍Free cash flow +14,7% YoY
• ▍Net margin -0.5%

Revenue INR 37.89B, −0,8% YoY; Operating income −61,2% YoY.

• ▍Revenue INR 37.89B, −0,8% YoY
• ▍Operating income −61,2% YoY
• ▍Net income −50,1% YoY
• ▍Free cash flow −6 989,4% YoY
• ▍Net margin 3.2%

Revenue INR 38.17B, +64,1% YoY; Operating income +523,0% YoY.

• ▍Revenue INR 38.17B, +64,1% YoY
• ▍Operating income +523,0% YoY
• ▍Net income +1 082,1% YoY
• ▍Free cash flow −98,2% YoY
• ▍Net margin 6.4%

Revenue INR 23.26B; Operating income INR 516.7M.

• ▍Revenue INR 23.26B
• ▍Operating income INR 516.7M
• ▍Net margin 0.9%