Beating the slowdown blues, Indian textile major Raymond has delivered strong bottom line growth in the third quarter of 2013-14, despite a challenging business environment where macro-economic headwinds dampened consumer confidence and moderated consumption spending.
The company, engaged in manufacture of finest fabrics - from wool to wool-blended worsted suiting to specialty ring denims as well as high value shirting, has reported an over four-fold jump in consolidated net profit for the third quarter ended December 2013 at Rs 56.89 crore as against Rs 12.84 crore in corresponding quarter of previous fiscal, helped by margin expansion in key business segment.
Net sales of the company, which has brands portfolio including Raymond, Raymond Premium Apparel, Park Avenue, ColorPlus, Parx, Makers and Notting Hill, rose 15 per cent to Rs 1207 crore in Q3 FY’14 from Rs 1049 crore in Q3 FY’13, boosted by strong volume growth.
Meanwhile, total consolidated income from operations increased to Rs 1208.15 crore for the October-December period as against Rs 1053.03 crore during the same period of last financial year.
During the quarter under review, the textile segment witnessed an increase of 8 per cent at Rs 543 crore on the back of higher realization in domestic as well as in the export segment. The apparel segment’s net sales stood at Rs 250 crore, an increase of 15 per cent on Y-o-Y basis.
The garment segment’s net sales grew by 45 per cent to Rs 104 crore during the quarter, while the denim business witnessed 8 per cent growth at Rs 235 crore backed by higher realization in domestic as well as in the export segment.
Commenting on development, Raymond Chairman and Managing Director Gautam Hari Singhania said, "We have ended the third quarter on a positive note, despite subdued discretionary spend witnessed in the month of December 2013.
“Our focus on profitability through margin expansion across key business segment has led to a strong bottom line growth in the current quarter as well as for the period till date,” he added.
