Raymond net down 79% on higher costs

Raymond, a textile major, has reported a 79 per cent fall in its net profit at Rs 13 crore compared with the corresponding period last year.

Profit was down on higher expenditure in the quarter ended December 31, despite sales being higher 10 per cent at Rs 1,049 crore.

Total expenditure went up by 19 per cent to Rs 1,001 crore compared with Rs 838 crore in the December quarter last year. Cost of raw material was up 15 per cent to Rs 295 crore. Manufacturing and operating costs were also up 25 per cent to Rs 203 crore. Textile business profit before interest and tax were down to Rs 61 crore compared with Rs 96 crore in the corresponding period last year. Gautam Singhania, chairman and MD, said, “The third quarter has been more challenging.” On the one hand the margins of our worsted suiting's business have been under pressure due to higher input costs and inflation, our apparel business suffered from high inventory overhang impacting margins. We have put in place various processes and cost improvement initiatives to tackle the same. We are confident that our initiatives will bear fruitful results in the time to come. Despite a tough quarter gone by, we remain confident about the long term consumption demand; and the strategic direction of our business and continue to invest in brand building, retail and in improving operational efficiencies.”