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Net profit more than doubles at Raymond in Q4FY15
09
May '15
Net profit for the fourth fiscal quarter ended March 31, 2015 at textiles and branded apparel major, Gautam Singhania led Raymond Ltd more than doubled from the same quarter of previous fiscal.

Net profit jumped 164 per cent to Rs 21 crore for the quarter ending March 31, 2015 over the Rs 8 crore it recorded in the prior fiscal fourth quarter.

Net sales for the reporting quarter grew 13 per cent to Rs 1,400 crore from Rs 1,244 crore in the corresponding quarter of fiscal 2014.

Of this, branded textile segment net sales surged to Rs 677 crore from Rs 543 crore, up a massive 25 per cent, while branded apparel segment net sales too drove up 26 per cent to Rs 288 crore from Rs 229 crore.

According to a Raymond report, textile segment sales were driven by volume growth in domestic and export market and penetration of shirting fabric across B2C channels.

The textiles major attributed the surge in branded apparel sales to strong performance across all the brands and sales through secondary channels like LFSs & EBOs grew 22 per cent year over year.

In the quarter under review, garmenting division sales rose slower at 5 per cent year over year to touch Rs 120 crore.

Raymond explained that the increase in sales was led by realisations, but EBITDA was impacted due to higher employee cost.

During the quarter, Raymond acquired the entire shareholding in Robot Systems Private Limited (RSPL), a wholly-owned subsidiary of Gokaldas Exports Limited.

RSPL has a manufacturing plant in Bengaluru with a capacity of 1.26 million garments per annum and this acquisition of RSPL is expected to enhance the garmenting capacity to tap into export demand.

The only division to post de-growth was the denim division where net sales dipped 5 per cent from the same quarter of last fiscal to Rs 240 crore.

“The 5 per cent de-growth in sales was due to lower volume off-take, but EBITDA margins improved due to lower raw material prices,” Raymond informed.

Led by a combination of volumes and realisations, the high value cotton shirtings division inked year over year sales growth of 7 per cent to reach Rs 92 crore in the quarter under review.

During the quarter, Raymond added 36 new stores, closed 7 stores and completed renovation of 8 stores. It added that 11 stores are under renovation with 34 stores renovated till date.

Blended same store sales growth across formats was 8 per cent year on year for the quarter, while total sales growth across the exclusive retail network was 12 per cent from the quarter from the last fiscal.

And although, net profits more than doubled, overall EBITDA slipped to Rs 120 crore, down 15 per cent and EBIT contracted 14 per cent to Rs 78 crore from Rs 91 crore. (AR)

Fibre2fashion News Desk - India

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