Reliance Delivers Strong Post-IPO Performance with NPR 267 million Profit in Third Quarter

Reliance Spinning Mills has published its unaudited financial statements for the third quarter of the fiscal year 2082/83 (up to mid-March).

The company, which recently issued its Initial Public Offering (IPO) through the book-building process. RSML has issued 924,768 units share at Rs. 820.80 for public. The company has demonstrated a strong financial position even after going public.

During the first nine months of the current fiscal year, the company reported a net profit of NPR 266.89 million. This net profit was generated from total revenue of NPR 7.46 billion. RMSL has COGS around 87% of its revenue. Company able to generate operating profit of NPR 534.99 million. This translates to an operating margin of 7.2% and a net profit margin of 3.6%.

Achieving NPR 7.46 billion in revenue within nine months reflects the company’s strong market presence and operational resilience. By generating a net profit of nearly NPR 270 million, Reliance has established itself as a profitable entity something not commonly observed among newly listed companies.

Based on the financial statements, the company’s earnings per share (EPS) stand at NPR 20.42, while its net worth per share is NPR 497.37.

Manufacturing companies are typically characterized by liquidity constraints; however, Reliance maintains a liquidity ratio of 2, indicating sufficient current assets to meet its short-term liabilities. This suggests that the company’s capacity to fulfill short-term obligations is well-covered.

Reliance Spinning Mills has total assets of NPR 14.08 billion. Company holding an inventory of amount NPR. 2 billion, around 14% of its total assets. Its total debt stands at NPR 2.56 billion, comprising NPR 1.96 billion in long-term liabilities and NPR 602.7 million in short-term borrowings.

The company’s paid-up capital is NPR 1.90 billion, Total equity stood at NPR. 9.45 billion included (reserves) of NRP. 7.55 billion. Notably, its reserve fund is nearly four times the size of its paid-up capital, reflecting a strong capital base and financial maturity. Company Dept to Equity ratio 0.27, indicating company highly rely on own equity than debt.