Raymond reports 12 pc growth in Q3 revenue amid sluggish domestic consumption

Fashion and textile retailer Raymond Ltd has reported 12 per cent year-on-year growth in its consolidated revenue for the third quarter of current fiscal (Q3 FY20) at Rs 1,903 crore.

The figure stood at Rs 1,706 crore in Q3 FY19. However, earnings before interest, tax, depreciation and amortisation (EBITDA) for Q3 FY20 were down by 2 per cent to Rs 182 crore.

The reported net profit was Rs 196 crore with underlying net profit at Rs 36 crore. The debt reduction during the quarter by Rs 415 crore was led by Rs 350 crore infusion from net proceeds of the land sale.

 

"Domestic consumption continued to be sluggish coupled with a liquidity crunch in the trade channels, impacting profitable growth during the quarter. However, the company continued to consolidate its market share with topline growth," said Chairman and Managing Director Gautam Hari Singhania.

The branded textile segment sales were at Rs 866 crore, up by 2 per cent over the previous year, driven by 10 per cent growth in the B2C shirting business. The branded apparel segment sales totalled Rs 488 crore, up by 23 per cent over previous year.

On the other hand, garmenting segment sales were at Rs 239 crore, higher by 29 per cent over previous year led by exports growth in the United States and Japan. Luxury cotton shirting fabric segment sales moved up by 5 per cent at Rs 168 crore due to higher domestic fabric sales and yarn sales.

The quarter also witnessed the deleveraging of balance sheet with over Rs 400 crore primarily driven by the net proceeds of land sale. With a focus on value creation during the quarter, the company also announced demerger of lifestyle business as a separate business entity.

"This move will enable us to have a focused strategy and specialisation for sustained growth across our businesses," said Singhania.

Raymond is India's largest integrated worsted suiting manufacturer that offers end-to-end solutions for fabrics and garmenting. It also has business interests in men's accessories, personal grooming and toiletries, prophylactics, engineering and auto components across national and international markets.

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