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Amalgamated net loss in Q1 reported by Raymonds

YarnsandFibers News Bureau 2014-07-28 15:00:00 – Mumbai

Raymond stores count as at 30 June 2014 stood at 954 across all formats, including 43 stores in the Middle East and SAARC region covering over 1.8 million square feet of retail space. The small-cap company has an equity capital of Rs 61.38 crore. Face value per share is Rs 10.


Raymond's net sales had risen 25.4% to Rs 1096.09 crore in Q1 June 2014 over Q1 June 2013. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 48% to Rs 63 crore in Q1 June 2014 over Q1 June 2013. EBITDA margins rose to 6% in Q1 June 2014 from 5% in Q1 June 2013.

 

But one of the top 10 company of India reported a consolidated net loss of Rs 32.85 crore in Q1 June 2014.With this, Raymond fell 1.41% to Rs 413.85 at 10:01 IST on BSE. This is even lower than the yesteryear when the firm witnessed a net loss of Rs 49.68 crore in Q1 June 2013.

 

The result was announced after market hours on Friday, 25 July 2014. Meanwhile, the BSE Sensex was up 3.22 points, or 0.01%, to 26,129.97. On BSE, so far 18,000 shares were traded in the counter, compared with an average volume of 1.13 lakh shares in the past one quarter.

 

The stock hit a high of Rs 420.30 and a low of Rs 406.05 so far during the day. The stock hit a 52-week high of Rs 470 on 21 July 2014. The stock hit a 52-week low of Rs 176.40 on 28 August 2013.

 

The stock had underperformed the market over the past one month till 25 July 2014, rising 2.40% compared with 3.21% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 30.93% as against Sensex's 15.16% rise.

 

The textile segment sales for the quarter ended 30 June 2014 grew by 27% on the back of higher volumes and better realization coupled with penetration of shirting fabric across B2C channels. EBITDA margins for the quarter improved by 67 basis points (bps) year on year (y-o-y) to 10%.


The apparel segment sales for the quarter grew by l4% to Rs 179 crore on the back of volume growth in key brands. EBITDA losses reduced to Rs 6 Crores compared with loss of Rs 11 crore in the previous year for the same period, led by higher volumes and operational efficiencies.

 

During the quarter ended 30 June 2014, like to like sales growth across all formats was 5% y-o-y, with secondary sales through the retail network registering a growth of 8% y-o-y.

 

Even garmenting segment sales grew by 50% to Rs 124 crore during the quarter led by combination of higher volumes and realization. EBITDA for the quarter more than doubled to Rs 16 crore. Luxury cotton shirting fabric business grew by 28% to Rs 91 crore during the quarter. EBITDA for the quarter grew by 7% to Rs 9 crore.

 

Sales of denim business grew by 6% to Rs 246 crore during the quarter. However, EBITDA for the quarter was impacted due to higher input costs. Sales of Tools & Hardware segment was up 1%. However, EBITDA margins for the quarter were impacted due to unfavorable product mix. Sales of Auto Components segment grew by 8% to Rs 70 crore during the quarter and EBITDA grew by 15% to Rs 9 crore.

 

Chairman & Managing Director of Raymond, Gautam Hari Singhania promises that they will continue to invest for growth during the year through brand building, retail network expansion and also capacity expansion in businesses having export potential.

 

He said that the current quarter saw improved performance in the Lifestyle business comprising textile, apparel and garment. The engineering business performance is in line with our expectations for the quarter and business is geared to deliver better performance in the ensuing quarters.

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