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Raymond slips after weak Q3 show

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Capital Market
Last Updated : Feb 10 2021 | 11:31 AM IST

Raymond fell 1.83% to Rs 335 after the company's consolidated net profit dropped 88.9% to Rs 21.69 crore on 34.1% decline in net sales to Rs 1243.44 crore in Q3 FY21 over Q3 FY20.

The company's profit before tax fell 89% to Rs 23.44 crore in Q3 FY21 over Q3 FY20. Current tax expense declined 25.4% to Rs 5.61 crore in Q3 FY21 over Q3 FY20.

Consolidated EBITDA declined 30% year-on-year to Rs 157 crore in Q3 FY21 over Q3 FY20. EBITDA margin improved to 12.2% in Q3 FY21 from 11.8% in Q3 FY20. Operating cost fell 42% Y-o-Y to Rs 334 crore due to cost rationalisation.

Commenting on the quarter performance, Gautam Hari Singhania, chairman & MD of Raymond said, "With markets and channels opening up and consumer sentiments getting back to track, we are seeing demand for our products & services getting better on a quarter on quarter basis and our sustained focus on operational efficiencies has yielded in a profitable quarter. Additionally, our Engineering Businesses are back on track with a profitable growth and performance of the FMCG business has also been profitable in the third quarter. We are pleased to see increased number of bookings in our realty project led by consumer incentives such as reduced stamp duty and low cost home loans. As the vaccination drive continues to gain momentum across the country, the businesses are gaining more confidence going forward."

The company said its net debt reduced by Rs 234 crore on a quarter-on-quarter basis driven by focused working capital management. Net Debt reduced to Rs 1,583 crore in December 2020 from Rs 1,817 crore in September 2020 and Rs 1,859 crore in March 2020.

Raymond is one of the largest integrated worsted suiting manufacturer that offers end-to-end solutions for fabrics and garmenting.

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First Published: Feb 10 2021 | 9:50 AM IST

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