Denim Business Vertical & Management Overview

March 2023 Key Highlights Review of Q4 & FY23 and Outlook for the Future RSWM Limited an LNJ Bhilwara Group Company ☐ Performance Overview: FY23 proved to be a mixed bag for the Textile Industry, and RSWM Ltd. experienced a similar trajectory. The year began on a strong note with a positive Q1, but the industry faced significant challenges in Q2 and Q3, leading to a steep decline. However, there were signs of recovery in Q4. Business Environment Challenges: Geopolitical tensions and an unprecedented increase in cotton prices presented a highly challenging business environment over the past nine months. These factors created obstacles for RSWM Ltd. and the industry as a whole. Impact on Textile Exports: Sluggish demand from overseas markets, particularly the United States and Europe, had an adverse effect on textile exports during FY23. Export volumes, which account for 22% of the industry, witnessed a decline of 14% year-on-year. Yarn Exports and Domestic Market Shift: Yarn exports were hit particularly hard, experiencing a significant drop of around 46% year-on-year in the first nine months. This decline forced RSWM Ltd. to redirect its capacities toward the domestic market to mitigate the impact. Capacity Utilization and Financial Stability: Despite the challenging environment, RSWM Ltd. successfully utilized its capacities fully. This strategic move helped the company navigate the downturn and maintain a robust financial position. Stabilization of Raw Material Prices: Raw material prices stabilized in the later part of the year, bringing some relief to RSWM Ltd. and other players in the industry. ☐ Optimism for the Future: RSWM Ltd. remains optimistic about the coming year and is committed to continuing its strategic expansion plans. The company believes in its ability to deliver strong results and value to its stakeholders. ☐ Strengthening Financial Position: To bolster its financial position, RSWM Ltd. infused 235.51 Cr. into the business through a right issue of equity shares. This move demonstrates the company's commitment to its growth trajectory. Wide Market Reach and Product Portfolio: RSWM Ltd. boasts an extensive outreach across domestic markets and more than 70 countries worldwide. With a diverse product basket and a strong workforce, the company is well-positioned to navigate challenges and capitalize on opportunities. www.rswm.in 07 19

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