Reliance Spinning Mills Limited (RSML) has released its first-quarter financial results for FY 2083/84, reporting a 342.53% increase in net profit to Rs. 30.48 Crore, driven by strong growth in operating revenue and a substantial improvement in operating profit.
The company’s paid-up capital increased by 11.28% to Rs. 1.90 Arba from Rs. 1.70 Arba in the corresponding quarter of the previous fiscal year. Similarly, other equity increased by 25.60% to Rs. 7.40 Arba from Rs. 5.89 Arba.
Meanwhile, property, plant and equipment declined by 3.20% to Rs. 9.24 Arba from Rs. 9.54 Arba. Trade receivables also decreased marginally by 1.70% to Rs. 1.50 Arba from Rs. 1.52 Arba.
The company’s revenue from operations increased by 28.78% to Rs. 3.20 Arba in Q1 FY 2083/84, compared to Rs. 2.49 Arba in the corresponding quarter of the previous fiscal year.
Similarly, operating profit surged by 139.85% to Rs. 40.57 Crore from Rs. 16.92 Crore.
However, the company’s cost of sales also increased by 20.56% to Rs. 2.64 Arba from Rs. 2.19 Arba during the review period.
Reliance Spinning Mills recorded other income of Rs. 1.30 Crore, up 51.90% from Rs. 85.26 lakh in the corresponding quarter.
Meanwhile, administrative expenses increased by 11.18% to Rs. 10.16 Crore from Rs. 9.14 Crore.
Despite the rise in operating expenses, strong revenue growth and improved operating performance significantly boosted the company’s bottom line. As a result, net profit surged by 342.53% to Rs. 30.49 Crore, compared to Rs. 6.89 Crore in Q1 FY 2082/83.
The company’s annualized earnings per share (EPS) rose 297.66% to Rs. 64.18 from Rs. 16.14.
Similarly, net worth per share increased by 9.97% to Rs. 489.53 from Rs. 445.14.
At the end of Q1 FY 2083/84, the company’s quarter-end price-to-earnings (P/E) ratio stood at 41.29 times, while its quarter-end market price was Rs. 2,650 per share.
* Figures are of Immediate Previous Year Quarter Ending
