Raymond’s net profit up 190%

Raymond has announced its results for the year ended March 31, 2012. In a

 filing to Bombay Stock Exchange, Raymond has said that its FY-12 consolidated net sales grew by 20 per cent on year-on-year basis to Rs 3,642 crores, while EBITDA was up to 11 per cent to Rs 535 crores. Its consolidated profits grew by 190 per cent to Rs 156 cores. The board of directors has recommended dividend of 25 per cent. The company’s consolidated net sales for the fourth quarter was up 13 per cent to Rs 949 crores, however EBITDA was down 19 per cent to Rs 96 crores.

The Textile segment (standalone) sales for the quarter ended March 31, 2012 increased by 24 per cent at Rs 510 crores on the back of both higher realizations and volume growth. The segment reported Earnings Before Interest and Tax (EBIT) of Rs 81 crores. The branded apparel business sales stood at Rs 165 crores, up by 12 per cent. It reported a loss at the EBITDA level of Rs 15 crores mainly due to extended end of season sales for liquidation of inventory during the quarter. Raymond's retail network has crossed 850 stores mark. The store count stood at 853 across formats, including 39 stores in Middle East and SAARC region covering over 1.6 million sq. ft. of retail space. The High Value shifting fabric business revived during the quarter. Though sales were down by 12 per cent, at Rs 56 crores and the EBITDA stood at Rs 8 crore, up 31 per cent for the quarter. The Indian operations of denim business witnessed 13 per cent sales growth during the quarter at Rs 187 crores, while its EBITDA stood at Rs 21 crores up by 92 per cent compared to the previous year. Margins witnessed improvement backed by correction in cotton prices.

Gautam Hari Singhania, Chairman and MD of the Raymond Group said that the financial year was a combination of two extremes, with the first half witnessing buoyant consumer sentiment, while the second-half saw a dip in sentiment. However, our pioneering strategies in branded fabric and apparel retailing has made it possible to withstand the downturn by providing access to our innovative products and dressing solutions to consumers across India’s large and small towns.