Reliance Spinning Mills Reports 845 Percent Surge in Profit

Reliance Spinning Mills, which is in the process of issuing shares through the book-building method, recorded a sharp rise in profit in Fiscal Year 2024/25.

According to the company’s unaudited financial report for the fourth quarter of FY 2024/25, its net profit jumped by 845.51 percent compared to the previous fiscal year. The company’s net profit, which stood at over Rs 50.3 million in FY 2023/24, surged to Rs 476.3 million in FY 2024/25. Net profit refers to the amount remaining after deducting costs such as raw materials, salaries, interest payments, and taxes.

With the increase in net profit, the company also announced a 500 percent rise in staff bonuses. It distributed Rs 10.1 million in bonuses in FY 2023/24, which increased to Rs 60.8 million in FY 2024/25, the report stated.

During FY 2024/25, the company spent Rs 1.16 billion on employee salaries, an increase of Rs 55.8 million compared to the previous year. Reliance said around 4,000 workers are currently employed in its factories in Khahare and Duhabi, Sunsari, including about 1,300 women.

The company added that it provides various facilities for staff and their families, including a breastfeeding room for women, a daycare center for children, and schooling up to grade 12 for employees’ children within its industrial premises. It also operates a well-equipped labor colony, sports grounds, a modern canteen, and health facilities with specialist doctors and ambulance services.

In FY 2024/25, the company’s operating revenue rose from Rs 9.20 billion in the previous year to Rs 10.23 billion. Its total assets now exceed Rs 14.89 billion, while total liabilities stand above Rs 7.36 billion.

Reliance’s paid-up capital amounts to Rs 1.70 billion, while its other equity rose by about 9 percent to more than Rs 5.82 billion. Earnings per share (EPS), which was Rs 2.95 at the end of FY 2023/24, jumped to Rs 27.90 in FY 2024/25.

Reliance Spinning Mills is currently led by Akshay Golyan, a third-generation representative of the Golyan Group. In July, the Government of Nepal honored him as a Commercially Important Person (CIP) in recognition of his contribution to the national economy through the industrial and business sector.