We continue to believe in creating new markets – Mr Singhania
21 Jan '10
3 min read
Raymond Limited announced its un-audited financial results for the quarter ended December 31, 2009.
The figures for the quarter ending December 31, 2009 are not comparable to the figures of the correspondirtg period last year as The FlIes & Tools division was transferred to the wholly owned subsidiary, Hindustan Files Ltd (subsequently renamed as JK Files (India) Ltd.) with effect from October 1, 2009. Figures for Q3FY09 include the performance of Files & Tools division.
Textile segment sales registered an increase of 26% to Rs 368 crores from Rs 292 crores in the corresponding quarter of the previous financial year, on account of higher volumes. At the EBIT level, the Textile segment witnessed a profit of Rs 62 crore representing EBITmargins of 17%.The transitional on-costs on account of Vapi facility continues.
The net sales of the entire Files & Tools business was down 3% to Rs 52 crores from Rs 54 crores in the corresponding quarter of the previous financial year. However, EBITDA margins were 15% against 10% in the corresponding previous quarter.
The Branded apparel business witnessed net sales of Rs 138 crores and EBITDA of Rs 12 crores. The EBITDA margins were maintained at 9%.
Raymond Ltd. continues to operate one of the largest specialty retail networks in India in textile and apparel space with 618 retail stores covering over 1.33 million square feet of retail space. During the quarter, the company added 26 new stores under various formats and closed few unviable stores. Like-to-like store sales growth for the quarter is 8%.
The Indiim denim operations continue to be EBITDA positive. The company has denim manufacturing at two locations, India and Romania after shutting down its loss-making units of US and Belgium.
Announcing the results, Mr. Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said, "At Raymond, our focus has always been to build a business that enhances our inherent strengths. Our company has been through a globally turbulent business environment, with a recovery in sight. Our business has witnessed healthy volume growth and we are now focused to adapt to the changing needs of the consumer, who is now becoming increasingly value-centric.
We continue to remain bullish on the long-term Indian consumption story and believe in creating new markets and building on our existing network presence. Our strategy to enter the Tier 3/4/5 cities and towns with our iconic brands has been well-received and we are optimistic of further consolidating our end-to-end leadership position in the industry. We aim to achieve this by combining the strengths of a robust retail presence, with an array of brands that suit the varied needs of diverse customer segments."
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