RSWM Ltd Reports Improved Financial Metrics Amid Concerns Over Non-Operating Income Reliance

RSWM Ltd, a microcap player in the Garments & Apparels industry, has recently reported its financial results for the quarter ending June 2025. The results, declared on August 5, 2025, indicate notable developments in the company's financial metrics.
The company has recorded a Profit After Tax (PAT) of Rs 8.37 crore, reflecting a significant growth compared to the average PAT of the previous four quarters, which stood at Rs -10.01 crore. This marks a positive shift in the near-term PAT trend. Additionally, RSWM's Operating Profit to Interest ratio has reached its highest level in five quarters at 2.09 times, suggesting an improvement in the company's capacity to manage interest obligations.

Operating Profit (PBDIT) has also peaked at Rs 72.78 crore, while the Operating Profit Margin has improved to 6.22%, indicating enhanced operational efficiency. Furthermore, the Earnings per Share (EPS) has risen to Rs 1.78, showcasing increased profitability for shareholders.

However, the company faces challenges as its Non-Operating Income constitutes 104.90% of Profit Before Tax (PBT), with a recorded high of Rs 11.57 crore. This reliance on non-business income raises concerns regarding sustainability.

In light of these developments, RSWM Ltd has experienced an adjustment in its evaluation.

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