Raymond’s Q4 net profit grows 162 per cent

Raymond, India’s largest branded fabrics and fashion retailer, posted an increase of 162 per cent in net profit at Rs 56 crores during the January-March quarter as compared to Rs 21 crores in a year ago quarter. The profits come because of higher sales in the textile and branded apparel businesses and better cost efficiency.

Cost efficiency has been possible because of adoption of modern technologies and optimum capacity utilisation. Raymond’s textile and apparel businesses posted 7 per cent and 15 per cent profit respectively during the quarter. The increased profitability come despite the large scale investments made for expansion of its retail network. However, there was a dip in sales in its denim and other unrelated engineering businesses during the quarter due to slowdown and currency volatility in the export markets.

Gautam Hari Singhania, Chairman and Managing Director, pointed out that even though the year 2015-16 was challenging due to subdued consumer interests and difficult global economic environment, the company managed to end on a positive note which was driven by good growth in revenue and profitability, especially in the lifestyle businesses.

However, the 90-year-old textile manufacturer’s net profit for the entire year was down 18 per cent to Rs 92 crores as compared to the previous year’s Rs 113 crores, even though the overall revenue at Rs 5,702 crores grew 5 per cent this year as against Rs 5,428 crores in 2014-15.