Raymond Q1 net slumps 85% to Rs 3 cr

BS 200 SCORECARD

Raymond Ltd has announced a 85 per cent drop in its net profit for the first quarter ended June 30, 2004, at Rs 3.14 crore compared with Rs 20.92 crore in the corresponding quarter last year. Net sales increased to Rs 187.59 crore (Rs 173.23 crore).

In a press release, Raymond attributed the decline in profit to the depreciating rupee, which resulted in foreign exchange loss of Rs 9.82 crore (gain of Rs 3.52 crore in the previous year), higher interest charges of Rs 4.88 crore (net interest income of Rs 2.68 crore) and higher raw material costs.

However, the company is confident of achieving satisfactory performance for the year 2004-05. The profit before tax (PBT) for the first quarter was Rs 5.14 crore (Rs 26.42 crore). Other income increased to Rs 19.79 crore (Rs 15 crore).

Other income includes Rs 7.58 crore profit on sale of 25.4 million equity shares of Rs 10 each held in EBG India and Rs 3.26 crore profit on sale of current investments. The company's textile division recorded sales of Rs 107.77 crore (Rs 107.53 crore).

The profitability of the division has been affected by an increase in the cost of raw material. The denim division recorded a marginal increase in revenues at Rs 47.46 crore (Rs 40.28 crore).

The performance of the division was affected due to a steep increase in cotton prices. The files division recorded sales of Rs 33.13 crore (Rs 26.34 crore). The performance of the division was affected due to hike in input cost of steel.