Winsome Yarns Posts Steep Revenue Drop but Trims Annual Losses
The textile firm's revenue fell sharply in Q4 and for the full year, though annual losses showed some improvement from the prior period.
Winsome Yarns reported a severe contraction in quarterly revenue, down over 80% year-on-year. However, the company managed to reduce its full-year net loss by 80.6% compared to FY22.
Winsome Yarns ended its fiscal year with a quarter of dramatically lower sales, though a year-on-year reduction in its quarterly loss offered a sliver of improvement. The full-year picture shows a company still deep in the red, but one that managed to pare back its annual net loss significantly compared to the prior year.
Revenue for the quarter ended March 2023 collapsed to ₹2.43 crore, an 80.8% drop from the ₹12.63 crore reported in Q4 FY22. Sequentially, revenue also fell sharply by 74.6% from the ₹9.58 crore in Q3 FY23. Despite the steep top-line decline, the quarterly net loss of ₹3.01 crore was an improvement on both the ₹12.09 crore loss in the previous quarter and the ₹1.29 crore loss from a year ago.
For the full financial year FY23, the story is one of contraction with a silver lining. Annual revenue fell 28.8% to ₹30.93 crore from ₹43.47 crore in FY22. However, the company's full-year net loss narrowed to ₹26.42 crore, an 80.6% improvement over the ₹14.63 crore loss in FY22. This indicates that while sales are under severe pressure, the company has made progress in controlling its overall loss magnitude.
Quarterly Performance Snapshot
Revenue (₹ Cr)
Profit (₹ Cr)
| Metric | CurrentQ4 FY23 | PreviousQ3 FY23 | Same quarter LYQ4 FY22 |
|---|---|---|---|
| Period | Quarter ended March 2023 | Quarter ended December 2022 | Quarter ended March 2022 |
| Revenue (₹ Cr) | 2.43YoY -81% | 9.58 | 12.63 |
| Profit (₹ Cr) | -3.01YoY -133% | -12.09 | -1.29 |
The table illustrates a volatile and challenging year, with revenue peaking in Q2 before a steep descent. The company's financial health remains precarious, with a negative net worth and a return on capital employed (ROCE) of -16.34% for the latest period. The path to sustained profitability requires not just cost control, but a fundamental reversal of the prolonged revenue decline.
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· WINSOME
(BSE)
ISIN: INE784B01035
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