BSERainbow Denim LtdHighNeutral
Announced Wed, 28 May, 2025 · 17:59 IST

Results Audited 31-03-2025

Emphasis Of MatterRevenue Growth 20pctPat Growth 25pctEbitda Margin CompressionNegative Operating CashflowResults View source PDFExplain this filing
Price reaction

Awaiting price reaction for this filing.

AI summary

Rainbow Denim Ltd reported a sharp jump in full-year revenue to ₹16,431.47 lakhs in FY25, up from just ₹1,492.29 lakhs in FY24, reflecting the ramp-up under new management that took over in September 2023 after the NCLT process. Net profit for FY25 surged to ₹1,395.23 lakhs versus ₹235.86 lakhs last year, taking basic EPS to ₹10.50 from ₹1.78. Q4 FY25 alone delivered revenue of ₹6,646.88 lakhs and profit of ₹908.01 lakhs, both several times higher than the corresponding quarter last year. However, finance costs ballooned to ₹633.01 lakhs from ₹23.13 lakhs, and the company posted negative operating cash flow of ₹1,785.52 lakhs, driven by a large build-up in inventories and receivables. Total assets nearly doubled to ₹16,486.18 lakhs while short-term borrowings rose sharply to ₹7,114.54 lakhs.

Likely market impact

Strong top-line and earnings growth is positive, but rising debt, heavy interest burden, and negative operating cash flow suggest working capital and leverage pressures that investors should watch closely.