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Raymond slumps to 52-week low after unveiling weak Q1 results

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Capital Market
Last Updated : Jul 26 2013 | 12:30 PM IST

Raymond lost 4.63% to Rs 206.80 at 11:23 IST on BSE after the company reported consolidated net loss of Rs 49.68 crore in Q1 June 2013, higher than net loss of Rs 34.98 crore in Q1 June 2012.

The result was announced after market hours on Thursday, 25 July 2013.

Meanwhile, the BSE Sensex was up 5.34 points, or 0.03%, to 19,810.10.

On BSE, 67,535 shares were traded in the counter as against an average daily volume of 92,477 shares in the past one quarter.

The stock hit a 52-week low of Rs 204.15 in intraday trade today, 26 July 2013. The stock hit a high of Rs 220.40 so far during the day. The stock had hit a 52-week high of Rs 488.90 on 11 December 2012.

The stock had underperformed the market over the past one month till 25 July 2013, falling 11.62% compared with the Sensex's 6.31% gain. The scrip had also underperformed the market in past one quarter, sliding 22.43% as against Sensex's rise of 2.05%

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The small-cap company has an equity capital of Rs 61.38 crore. Face value per share is Rs 10.

On a consolidated basis, Raymond's net sales rose 4.4% to Rs 873.79 crore in Q1 June 2013 over Q1 June 2012.

The textile segment sales rose 13% in Q1 June 2013 over in Q1 June 2012 on the back of higher volumes and better realization. EBITDA margins for the quarter improved by 400 basis points to 9% in Q1 June 2013 over Q1 June 2012.

The apparel segment sales fell 14% to Rs 158 crore Q1 June 2013 over Q1 June 2012 and reported a loss at the EBITDA level of Rs 10 crore in Q1 June 2013. The business has been impacted due to lower primary off take, besides higher retail expenses consequent to new stores added in the last year.

Raymond stores count as at 30 June 2013 stood at 944 across all formats, including 41 stores in the Middle East and SAARC region covering over 1.8 million square feet of retail space. During Q1 June 2013, like to like sales growth across all formats was 8%, with secondary sales through the retail network registering a growth of 14% year-on-year.

The high value shirting fabric business grew by 4% to Rs 71 crore during Q1 June 2013. However, EBITDA for the quarter was impacted due to higher input costs and lower exports.

Sales of denim business grew by 4% to Rs 232 crore, while EBITDA margins were flat at 12%. Sales of tools and hardware segment grew by 5% led by domestic market. However, EBITDA margins for the quarter were lower due to higher sales of products to low margin geographies and new product launches.

Announcing the results, Mr. Gautam Hari Singhania, Chairman & Managing Director, Raymond said, Due to the seasonal nature of our business, the first quarter results of Raymond are not reflective of full year's performance. High interest cost besides volatile currency environment also contributed to weak financial performance. We are hopeful that the global economic uncertainties and the domestic scenario will improve in the coming quarters. We believe that the domestic consumption story in India is intact and will accordingly continue to focus on operational efficiencies, brand building and retail expansion.

Raymond is one of the largest integrated manufacturers of worsted fabric in the world.

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First Published: Jul 26 2013 | 11:35 AM IST

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