Ramaraju Surgical Cotton Q3FY25 Results Update

08 February 2025

• Financial Performance (Q3 FY25 vs Q3 FY24): Ramaraju Surgical Cotton Mills reported total revenue of ₹105 Cr in Q3 FY25, registering a 16.9% YoY growth from ₹90 Cr in Q3 FY24. This increase was primarily driven by higher sales of products. However, the company reported a loss before tax of ₹(21) Cr, compared to a loss of ₹(13) Cr in Q3 FY24, widening by 64.7% YoY due to increased expenses, particularly in cost of materials and power & fuel. Similarly, Profit After Tax (PAT) stood at ₹(16) Cr, a decline from ₹4 Cr in Q3 FY24.
• Nine-Months Performance (9M FY25 vs 9M FY24): For the nine-month period ended December 31, 2024, total revenue stood at ₹281 Cr, up 4.9% YoY from ₹267 Cr in 9M FY24. However, the company posted a loss before tax of ₹(48) Cr, compared to a loss of ₹(40) Cr in 9M FY24, reflecting continued cost pressures. Similarly, PAT stood at ₹(38) Cr, deteriorating from ₹(31) Cr in 9M FY24.
  
• Operational Metrics & Key Ratios (Q3 FY25 vs Q3 FY24):
  Segment-wise performance:
  Textiles segment revenue stood at ₹93 Cr, increasing 21.3% YoY from ₹77 Cr. However, the segment reported a loss before finance cost & tax of ₹(17) Cr, compared to a loss of ₹(8) Cr in Q3 FY24.
  Surgical segment revenue came in at ₹13 Cr, Declining by 2.7% YoY from ₹14 Cr. The segment posted a profit before finance cost & tax of ₹4 Cr, improving from ₹3.5 Cr in Q3 FY24.
  Wind mills revenue stood at ₹10.23 Cr, almost flat YoY. The segment reported a profit of ₹0.70 Cr, compared to ₹0.29 Cr in Q3 FY24.
  
• Cost Analysis: Raw material costs increased 17.7% YoY to ₹60 Cr.
  Finance costs stood at ₹8.6 Cr, declining 4.2% YoY from ₹9 Cr.
  
• Growth Outlook: Ramaraju Surgical Cotton Mills witnessed steady revenue growth, primarily driven by the textile and surgical segments. However, higher raw material costs and energy expenses have put pressure on margins, leading to widening losses. The company’s focus on cost management and operational efficiencies will be crucial in the coming quarters to restore profitability.