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EBIT margin of Raymond's textile segment up by 16%
02
Feb '09
Raymond Limited announced its un-audited financial results for the quarter ended December 31, 2008.

The Textile segment sales registered an increase of 3% to Rs 292 crores on the back of higher realizations driven by the inherent strength of the brand. With significant cost improvement measures being effectively undertaken during the period and the ERP system benefits flowing through, the Textile segmental EBIT increased by 27% from Rs 37 crore in same quarter in the previous year to Rs 47 crore in the quarter ending December 31, 2008. The EBIT margin of the Textile segment increased to 16% from 13% in the same quarter of the previous year.

The net sales of Files & Tools segment was up 31% to Rs 56 crores backed by higher realizations and higher volumes, especially in the international markets. The Files & Tools segmental EBIT increased to Rs 7 crores from Rs 3 crores in the same quarter of the previous year. The EBIT margin of Files & Tools segment improved to 12% from 6%.

The standalone profitability was affected by Rs 33 crores on account of foreign exchange losses during the quarter. Consequently, the standalone net loss for the quarter ended December 31, 2008 was Rs 15 crores.

Despite challenging market conditions the branded apparel business witnessed sales of Rs 146 crores. The company has recently launched brand extensions under Park Avenue and Parx in the innerwear category. The new accessories store format, 'Neckties & More' has been very well received.

Raymond continues to operate one of the largest specialty retail network in India in textile and apparel space. The Group added 24 stores, retailing space of 55,000 sq. ft. during the quarter. The retail sales of the company have grown by 8% over the same period previous year on the back of expansions into Tier III and IV towns and cities.

Like-to-like store sales for the quarter have grown by 3%.

The Indian denim operations continue to be EBITDA positive and continue to run in full capacity. The loss making Belgium and US operations of the denim joint venture of the Group were closed down in December 2008. The process of liquidation of assets is in process.

Announcing the results, Mr. Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said, “During the current unprecedented times, our brand strengths, our network reach and our cost focus have combined together to deliver sustain the performance levels in our core businesses. The ongoing global recession will bring with it a new set of opportunities which we are well positioned to capitalize on. Furthermore, we are bullish on the long term Indian consumption story and we believe that this combination of factors will play out to further consolidating our end-to-end leadership position in the industry.”

Raymond Limited

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