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Ramaraju Surgical Cotton Mills Q1

The Ramaraju Surgical Cotton Mills Limited (TRSCML) announced its earnings for June 2021 quarter. The company returned to the black, reporting a net profit of Rs 12 crore in the quarter ended on June 30, 2021, as against a net loss of Rs 5.79 crore in the year-ago quarter.

The Rajapalayam (TamilNadu) based company had reported a rise of more than 130% in the revenue from operations toRs 84.33 crores in the first quarter of ongoing fiscal, whereas it had reported a total operating income of Rs 36.36 crore in the same quarter previous year.

Ramaraju Surgical Cotton Mills is a part of Ramco Group of companies, which is engaged in other businesses like yarns, cement, roofing, and other building products.

The company is the largest producer of absorbent cotton, gauze, bandages, and other wound-care products in Southern India and is included among the top players of the country.

It has a monthly production capacity of over 125 tonnes of medical-grade bleached cotton and over 1.5 million square meters of bandages and gauze products.

However, the net profit tanked about two-third or 64% from Rs 33.44 crore on a sequential basis and the operational income declined 15% from Rs 98.69 crore, against the previous quarter ended on March 31, 2021.

The diluted Earning per share (EPS) of the antiseptic dressings manufacturer turned positive in the Q1FY2022 to Rs 30, which was Rs 15 below zero in the Q1FY2021. The EPS stood at Rs 85 in the Q4FY2021.

The company witnessed a jump of 60% in the total expenses to Rs 70.56 crore in the April-June period on a year-on-year (YoY) basis from Rs 43.9 crore. On the contrary, the expenses declined on a quarter-on-quarter (QoQ) from Rs 94.39 crore.

Incorporated in 1939, the company procures the raw material, that is the cotton, from the local farmers. The company is aiming to transform the region into an industrial society from an agrarian one.

The company has reported an operating income of Rs 284.24 crore and 32.81 crores in the financial year 2020-21. The EPS during the previous financial year stood at Rs 83.

The company has diversified its footsteps into spinning and weaving, which produces some of the world’s finest cotton yarn. This is used to manufacture premium fabrics for shirtings, bed linen, and Jacquard cloth.

The Metropolitan Stock Exchange of India (MSEI) listed entity brags more than 200 unique products in its portfolio, thanks to its workforce of more than 2,200 employees, toiling at its various facilities.

The company has surgical facilities in Rajapalayam and Perumalpatti, whereas spinning units are located in Rajapalaiyam, Silvassa, Subramaniapuram, and Thirumalagiri.

In FY 2019-20, the company derived about 41% (Rs 136 crore) from the textile segment, whereas the fabric segment contributed 46% (Rs 153 crore). Surgical and Windmills contributed 11% and 2% in the income, respectively.

Q1FY22Results

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