Raymond Ltd.’s standalone textile segment net sales for the quarter ended September 30, 2012, registered an increase of 11 per cent at Rs. 552 crores on the back of higher realization both in domestic and export markets. However, margins have been impacted due to higher input costs.
The Branded Apparel business net sales stood at Rs. 228 crores, an increase of four per cent on Y-o-Y basis and reported EBITDA of Rs. 22 crores against Rs. 41 crores in the corresponding previous quarter. Margins have been impacted due to subdued consumer sentiment and conscious effort to liquidate inventory during the extended end of season sale.
Raymond’s exclusive retail network across all formats and geographies stood at 902 stores as on September 30, 2012, covering over 1.7 million square feet of retail space. The company added 42 stores and closed seven stores during the quarter.
The High Value cotton shirting fabric business witnessed improved performance during the quarter. Sales stood 41 per cent higher at Rs. 79 crores while EBlTDA was higher by 63 per cent at Rs. 12 crores. Capacity utilization increased on expanded capacity.
The Indian operations of Denim business witnessed two per cent sales growth during the quarter to Rs. 195 crores, while EBITDA stood at Rs. 26 crores, up 33 per cent compared to the previous year. Margins improved mainly due to export growth.
Announcing the results, Mr. Gautam Hari Singhania, Chairman & Managing Director, Raymond Ltd., said: “Despite challenging business environment, Raymond has reported double-digit growth rates during the quarter on the strength of its brands, network and customer relationships. Though consumer sentiment continues to remain subdued largely due to high interest rates and inflation, we are confident about the long term and will continue to invest in brand building, retail and in improving operational efficiencies.”