Raymond fell 1.32% to Rs 282.35 after the company reported a consolidated net loss of Rs 136.59 crore in Q2 September 2020 compared with net profit of Rs 86.24 crore in Q2 September 2019.
On a consolidated basis, net sales tumbled 64.2% to Rs 674.21 crore in Q2 September 2020 over Q2 September 2019. Pre-tax loss stood at Rs 216.75 crore in Q2 September 2020 as against a pre-tax profit of Rs 75.52 crore in Q2 September 2019. Current tax expense for the quarter tanked 88% to Rs 1.39 crore as against Rs 11.61 crore in Q2 September 2019.
Opex slumped 47.76% to Rs 304 crore in Q2 September 2020 from Rs 582 crore in Q2 September 2019. The company reported negative EBITDA of Rs 52 crore in Q2 FY21 as against a positive EBITDA of Rs 237 crore in Q2 FY20. The Q2 result was declared after market hours yesterday, 10 November 2020.
The company said that a progressive recovery was witnessed on a month-on-month (M-o-M) basis in Q2 FY21. While July 2020 & August 2020 were impacted by local lockdowns, September 2020 witnessed a recovery of secondary sales leading to improvement in primary sales. Currently, consumer demand was back to 70% of PY level for The Raymond Shop (TRS) while Exclusive Brand Outlets (EBO) sales back to 50% of PY level.
The Q2 FY21 operating cost stood at Rs 304 crore, lower by 48% year-on-year (Y-o-Y) basis. With focused working capital management and cost rationalization, debt level was maintained. The net debt stood at Rs 1,817 crore in September 2020 as compared to Rs 1,827 crore in June 2020 and Rs 1,859 crore in March 2020. Liquidity was maintained in line with the June 2020 and March 2020 levels. Cash & cash equivalents stood at Rs 592 crore in September 2020 as against Rs 596 crore in June 2020 and Rs 571 crore in March 2020.
Commenting on the Q2 performance, Gautam Hari Singhania, the chairman and managing director (MD) of Raymond, said: "With consumer sentiments getting better on a sustained weekly basis, there is a rebound in consumer demand which is evident by increased footfalls in our retail stores. Our focused approach on cost optimization and operational efficiencies has helped us navigate through tough times and maintain both our liquidity and net debt levels. Our other businesses such as Engineering, FMCG and Real Estate are also getting back on track and showing positive signs of revival. As we move in the second half of the current financial year, I am hopeful that the economy will improve with tailwinds giving businesses the impetus for recovery."
Raymond is an integrated worsted suiting manufacturer that offers end-to-end solutions for fabrics and garmenting. The company also has presence in FMCG sector along with engineering and auto component markets.
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