India's Raymond Q1 profit jumps on one-off gain from consumer business sale

Raymond

11/08/2023 09:33

BENGALURU, Aug 11 (Reuters) - Indian textiles maker
Raymond  RYMD.NS  reported on Friday a multifold jump in
first-quarter profit,  helped by an exceptional gain from the
sale of its consumer business. 
    Raymond's consolidated profit was 10.65 billion rupees
($128.7 million) for the three months ended June 30, compared
with 809 million rupees a year earlier. 
    In April, Raymond agreed to sell its consumer business
Raymond Consumer Care including brands such as Park Avenue
deodorant and Kamasutra condoms to Godrej Consumer Products
 GOCP.NS  for $345 million in a bid to turn debt-free. 
    The latest quarter included a gain of 9.83 billion rupees on
the sale.
    The deal, completed in May, left Raymond with real estate,
engineering and denim production businesses. 
    Profit barring the gain, exceptional items, and taxes
declined over 4% to 1.12 billion rupees, the company said.
    Revenue grew 2.5%  to 17.71 billion rupees, while expenses
increased nearly 5% due to higher raw material costs. 
    Analysts expect Indian consumer goods makers to post margin
benefits in the next few quarters, with prices of commodities
such as packing materials easing. 
    "Going forward, we are optimistic as festive and wedding
season will set in during the second half of the year giving an
impetus to the consumer demand across the country," Chairman and
Managing Director Gautam Hari Singhania said in a statement. 
    Shares of Raymond rose as much as 2.5% after reporting
results. 

($1 = 82.7390 Indian rupees)

 (Reporting by Varun Vyas in Bengaluru; Editing by Dhanya Ann
Thoppil)
 ((varunvyas.hebbalalu@thomsonreuters.com;))