The Ramaraju Surgical Cotton Mills: Financial Results for FY24

07 November 2024

• Revenue-The company’s revenue declined by 10%, falling from Rs. 407 cr in FY23 to Rs. 366 cr in FY24, primarily due to reduced sales in textile products, while revenue from surgical dressings remained relatively unchanged. The net loss widened from Rs. 29 cr in FY23 to Rs. 38 cr in FY24, leading to a decrease in EPS from Rs. -74 in FY23 to Rs. -93 in FY24.
• Financial position- The company's total base increased by nearly 4%, rising from Rs. 727 cr in FY23 to Rs. 753 cr in FY24. However, the total equity saw a slight decline of 1%, from Rs. 268 cr in FY23 to Rs. 268 cr in FY24.
• Future prospects- Fiscal 2025 shows promise with stable cotton prices and improved spreads likely to boost margins. Revenue is expected to grow by 4-6%, supported by steady demand and stable cotton yarn prices, following a decline in FY24. Wider width fabric demand should also enhance margins. The home textile sector is recovering, and India aims to regain global market share. The company's made-ups division is expanding in the US, with ongoing replenishment discussions. Emphasis on sustainable, high-performance products has been well-received, and product development efforts will continue.