Raymond's net profit sees multifold jump to Rs 101.07 cr in Dec quarter

PTI | New Delhi | Updated: 25-01-2022 21:46 IST | Created: 25-01-2022 21:31 IST
Raymond's net profit sees multifold jump to Rs 101.07 cr in Dec quarter
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Raymond Ltd on Tuesday reported a multifold jump in its net profit of Rs 101.07 crore for the third quarter ended December 2021, helped by improved performance across the segment.

The company had posted a net profit of Rs 22.18 crore during the corresponding quarter of the previous financial year, Raymond said in a regulatory filing.

Its revenue from operations during October-December 2021 jumped 48.25 percent to Rs 1,843.39 crore, compared with Rs 1,243.44 crore in the year-ago period.

According to the company, it has reported the ''highest profitable quarter in the past 10 years'' and its revenue is now ''100 percent of pre-COVID-19 levels''.

''In domestic markets, improved consumer sentiments and strong festive & wedding season demand across our B2C (business-to-consumer) businesses and strong momentum of export orders maintained in garments and engineering businesses helped'' in achieving growth in revenues, said Raymond in a post-earnings statement. The company's total expenses stood at Rs 1,685.03 crore during the December 2021 quarter, a jump of 32.22 percent as against Rs 1,274.38 crore a year ago.

Raymond Chairman and Managing Director Gautam Hari Singhania said, ''With our focused approach on capitalising on the growing demand for our products and continued cost optimisation, we delivered record profitability. We generated free cash flows to reduce debt and are progressing towards being a net debt-free business.'' Raymond's revenue from textile stood at 49.05 per cent to Rs 898.85 crore as against Rs 603.04 crore of the corresponding quarter, helped by improved sales and operational efficiencies contributing to the growth. ''The growth driver being the improved consumer sentiments and strong momentum in secondary sales on the back of buoyant festive demand, wedding-related purchases and higher footfalls in retail outlets.

''The segment reported robust Ebitda margin of 21.2 per cent, higher by 433 bps compared to the previous year,'' it said. Revenue from the 'shirting' segment jumped 71.69 per cent to Rs 147.72 crore as against Rs 86.04 crore of Q3/FY 2021-22, led by higher cotton fabric sales in domestic markets. ''The segment reported lower Ebitda (earnings before interest, tax, depreciation and amortisation) margin of 8.6 per cent, impacted due to higher raw material prices,'' it said.

Revenue from the 'apparel' segment jumped 49.98 per cent to Rs 316.11 crore as against Rs 210.77 crore.

The garments segment rose 48.39 per cent to Rs 202.61 crore as against Rs 136.54 crore, mainly driven by growth in bulk business due to high demand from customers in the US, the UK and European markets.

''Ebitda margin for the quarter improved to 8.6 percent, higher by 204 bps compared to the previous year, mainly due to higher utilization levels,'' said Raymond.

Revenue from tools and hardware stood at Rs 130.07 crore, up 25.26 percent as against Rs 103.84 crore.

Its revenue from the auto components segment jumped 33.76 percent to Rs 78.57 crore as against Rs 58.74 crore in the October-December 2020 quarter.

''During the quarter, the engineering business was consolidated under JK Files & Engineering Ltd. On an aggregate basis, the sales grew 28 percent to Rs 209 crore as compared with Rs 163 crore in the previous year,'' it said.

Sales growth in the segment was mainly driven in export markets of the US, Europe, Asia and Africa. In the domestic market, there was a continued improvement in demand. Its real estate and development of the property segment was over two-fold to Rs 175.12 crore as against Rs 63.20 crore. ''The business witnessed strong growth in bookings due to improved customer sentiments and overall liquidity in the market,'' said Raymond.

Shares of Raymond Ltd on Tuesday settled at Rs 783.95 on the BSE, up 6.43 percent from the previous close.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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