The standalone Textile segment net sales for the quarter ended 30 June 2012 witnessed an increase of 6% at Rs 366 crore on the back of both higher volumes and better realization in the export market. However, margins have been impacted due to challenging domestic environment and increase in input costs.
The Branded Apparel business net sales stood at Rs 171 crore, down by 3% on YoY basis and reported EBITDA of Rs 10 crore as against Rs 23 crore in the corresponding previous quarter. The business has been impacted due to poor consumer sentiment and early end of season sale.
Raymond’s exclusive retail network across all formats and geographies stood at 867 stores as on 30 June 2012, covering over 1.6 million square feet of retail space. The company added 28 stores during the quarter and closed 14 stores during the quarter.
The High Value cotton shirting fabric business has witnessed improved performance during the quarter. The sales stood higher by 29% at Rs 68 crore while EBITDA was higher by 82% at Rs 10 crore. Capacity utilization has increased on expanded capacity.
The Indian operations of Denim business has witnessed 3% sales growth during the quarter to Rs 198 crore, while EBITDA stood at Rs 25 crore, up by 18% compared to the previous year. Margins have witnessed improvement mainly due to correction in cotton prices.
Announcing the results, Mr. Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said, "Keeping in line with industry sentiments, the first quarter results of the 2012-13 financial year for Raymond is reflecting a subdued trend. We are hopeful that the global economic uncertainties and the domestic scenario will improve going forward. We are therefore confident that this should bolster market sentiment and help the industry steer back on a growth path in the second half of the financial year. We at Raymond will continue to focus on our core areas of brand building, innovation and enhancing customer experience."