Indian textile maker Raymond posts 6% rise in Q4 core profit as sales grow

Raymond

09/05/2023 11:39

BENGALURU, May 9 (Reuters) - India's Raymond Ltd
 RYMD.NS  on Tuesday reported a nearly 6% rise in quarterly core
profit on the back of higher sales in its key textiles and
apparel businesses.
    The textile maker reported consolidated earnings before
interest, taxes, depreciation and amortisation of 3.79 billion
rupees ($46.34 million) for the three months to March 31, up
from 3.58 billion rupees a year before.
    However, the company's net profit was down over 26% at 1.94
billion rupees during the period, as a larger tax deferment had
propped up profitability in the quarter ended March 2022.
    India's retail inflation  INCPIY=ECI  eased towards the end
of the quarter and is likely to drop further in the current
fiscal year. Easing inflation and rising disposable incomes are
expected to drive consumer spending, fuelling a further recovery
in demand.
    The Mumbai-based firm, one of India's largest suit and shirt
makers, has benefited from a rise in demand for textiles as
Indians shop clothes for weddings and step out more often
following successive years of COVID-19 curbs.
    Quarterly revenue rose about 10% to 21.50 billion rupees,
with textile sales slightly up. Meanwhile, the apparel and
garment segments posted an 18.9% and 43.6% jump in sales,
respectively.
    Meanwhile, the company last month said it would de-merge
into two separate listed entities – Raymond and Raymond Consumer
Care – to turn net debt free and unlock higher value. 
    While Raymond would focus only on real estate, engineering
and denim production, Raymond Consumer Care would manage its
flagship lifestyle business that houses Raymond brand of suits
and Parx brand of casual wear.
    Shares of Raymond fell as much as 1.6% after reporting
results but reversed course to close 0.9% higher.


($1 = 81.7800 Indian rupees)

 (Reporting by Nandan Mandayam in Bengaluru; editing by Eileen
Soreng)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))