Raymond declines after workmen strike work at Chhindwara textile plant

Raymond declined 1.83% to Rs 433.75 at 10:30 IST on BSE after the company's announcement that workmen at its Chhindwara textile plant have gone on strike due to unreasonable and unlawful bonus demands.

The company made announcement after market hours yesterday, 26 October 2015

Meanwhile, the S&P BSE Sensex was down 94.78 points or 0.35% at 27,267.18.

On BSE, so far 4,310 shares were traded in the counter as against average daily volume of 40,988 shares in the past one quarter.

The stock hit a high of Rs 437 and a low of Rs 426.40 so far during the day. The stock had hit a 52-week high of Rs 579.50 on 9 December 2014. The stock had hit a 52-week low of Rs 360.05 on 25 August 2014.

The stock had outperformed the market over the past one month till 26 October 2015, gaining 13.53% compared with 5.79% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, declining 6.66% as against Sensex's 2.67% fall.

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

Raymond said that the strike has been declared illegal by the concerned Labour Authorities. The management is in dialogue with the workers and is trying to resolve the situation. The company's Vapi and Jalgaon textile plants continue with their normal operations and the company does not expect the strike at the Chhindwara textile unit to impact the availability of the finished products in the market place, Raymond said.

On consolidated basis, Raymond reported net loss of Rs 13.72 crore in Q1 June 2015 compared with net loss of Rs 32.85 crore in Q1 June 2014. Net sales rose 1.2% to Rs 1109.21 crore in Q1 June 2015 over Q1 June 2014.

Raymond offers end-to-end solutions for fabrics and garmenting.

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