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Textile segment sales surge 23% at Raymond in Q3FY15
28
Jan '15
Driven by growth in domestic sales, Indian textile major and diversified group, Raymond clocked a 23 per cent surge in textile segment revenue for the third quarter of fiscal 2015.

However, on account of higher expenses, consolidated net profit fell 1.44 per cent year on year in the same quarter ending December 31, 2014.

Raymond said its textile segment revenue drove up by 23 per cent from a year ago quarter to Rs 681 crore in the reporting quarter.

Raymond CMD Gautam Hari Singhania said, "We have registered good topline growth driven by strong performance in the textile segment.”

In the third quarter of fiscal 2015, Raymond posted decline in consolidated net profit at Rs 56.07 crore from Rs 56.89 crore during the corresponding quarter of fiscal 2014, which it attributed to higher expenses.

It’s consolidated net sales in the quarter under review too climbed by 14.54 per cent to Rs 1,382.32 crore from Rs 1,206.81 crore in the same quarter of previous fiscal year.

Third quarter of fiscal 2015 branded apparel sales rose to Rs 256 crore from Rs 244 crore, up 5 per cent. Raymond said sales growth was moderate due to lower primary sales and deep discounting by e-tailers.

During the quarter it added 22 new stores and closed 12 stores, completed renovation of 8 stores, with 9 stores still under renovation.

Volume growth helped Raymond achieve highest sales growth in the garmenting segment which expanded by a massive 32 per cent year-on-year to touch Rs 138 crore for the quarter under review.

Driven by export revenues, turnover in the joint venture denim segment turnover lifted albeit slower by 4 per cent from the prior year quarter to Rs 243 crore.

Sales in high value cotton shirting division ascended to Rs 97 crore in the third quarter of fiscal 2015 from Rs 86 crore in third quarter of fiscal 2014, up 13 per cent, from better volumes and realisations.

Raymond's expense in the third quarter of current fiscal grew by 15.37 per cent to Rs 1,281.4 crore compared with Rs 1,110.6 crore in the same quarter a year earlier.

EBITDA for the third fiscal quarter of current fiscal quarter also slipped higher by 5 per cent year-on-year to Rs 156 crore, while EBITDA margin dropped 220 basis points to 11.2 per cent from 13.4 per cent.

EBIT stayed flat at Rs 115 crore from the prior year quarter, but EBIT margin also dipped to 120 basis points to 8.2 per cent from 9.4 per cent.

Raymond said margins were impacted primarily due to product mix, higher advertisement and stores renovation.

“We have stepped up our advertisement spends, new store roll-outs, along with store renovation as a part of brand building exercises, benefits of which will commence accruing next year," Singhania added. (AR)

Fibre2fashion News Desk - India

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