Raymond Q2 net sales up but net profit falls 26 percent

Textile major Raymond has reported a fall in net profit by 26 percent to Rs 68 crores in the second quarter of the current fiscal. Raymond’s net sales increased 19 percent to Rs 1,471 crores.

The textile business witnessed anincrease of 23 percent in sales in the second quarter of Q2 to Rs 694 crores. However, the EBIDTA for the quarter was impacted due to product mix, higher input cost and The Raymond Shop renovation. The apparel business also saw its EBIDTA fall by 5 percent on the back of higher ad spends. Sales during the quarter stood at Rs 293 crores. Luxury cotton shirting fabrics business saw its EBIDTA margins improve by 5.8 percent to 16.8 percent due to better realisations and one off income of Rs 6.50 crore during the September quarter.

The company recently made an online foray with a full-fledged virtual platform called RaymondNext.com, that will also include mobile apps. For this latest step, the company has roped in Vijay Basrur, a digital specialist who has worked with online startups like Quikr and Bazee.com. The e-platform will display all of company's brands, including Raymond, Park Avenue, ColorPlus and Parx, and products spread across textile, apparel, home furnishing and personal care accessories apart from customised design and styling services.