Raymond jumps after Q2 results

Raymond rose 3.65% to Rs 279.55 at 10:39 IST on BSE after consolidated net profit jumped 84% to Rs 92 crore on 10% increase in net sales to Rs 1224 crore in Q2 September 2013 over Q2 September 2012.

The result was announced after market hours on Wednesday, 23 October 2013.

Meanwhile, the BSE Sensex was up 225.40 points, or 1.09%, to 20,993.28.

On BSE, 2.53 lakh shares were traded in the counter compared with average volume of 1.40 lakh shares in the past one quarter.

The stock hit a high of Rs 285 and a low of Rs 276 so far during the day. The stock hit a 52-week high of Rs 488.90 on 11 December 2012. The stock hit a 52-week low of Rs 176.40 on 28 August 2013.

The stock had outperformed the market over the past one month till 23 October 2013, rising 20.08% compared with the Sensex's 4.36% rise. The scrip had also outperformed the market in past one quarter, rising 14.18% as against Sensex's 2.29% rise.

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

Raymond's earnings before interest taxes depreciation and amortization (EBITDA), after forex losses, rose 21% to Rs 205 crore in Q2 September 2013 over Q2 September 2012. EBITDA margin increased to 17% in Q2 September 2013 compared with 15% in Q2 September 2012.

Raymond said that the textile segment sales for the quarter ended 30 September 2013 witnessed an increase of 7% at Rs 559 crore on the back of higher realization in domestic as well as in the export segment. EBITDA margins for the quarter improved by 192 bps to 27%.

The apparel segment sales stood at Rs 254 crore, an increase of 9% on year-on-year (y-o-y) basis. EBITDA margins expanded by 88 bps to 8%.

The retail stores count as at 30 September 2013 stood at 946 across all formats, including 41 stores in the Middle East and SAARC region covering over 1.8 million square feet of retail space. During the quarter ended 30 September 2013, like-to-like sales growth across all formats stood at 3%. Secondary sales through the exclusive retail channel grew by 8% y-o-y.

The garmenting segment grew by 17% to Rs 118 crore during the quarter. However, EBITDA for the quarter was impacted by Forex losses of Rs 5 crore (compared with a gain of Rs 1 crore in last year), mainly due to mark-to-market (MTM) provisioning on unexecuted orders.

The cotton shirting fabric business (Raymond Zambaiti) grew by 12% to Rs 88 crore during the quarter. However, EBITDA for the quarter was impacted due to higher input costs and lower exports. During the quarter, Raymond Zambaiti has become a subsidiary of Raymond effective from 18 September 2013 and results of Raymond Zambaiti have been consolidated accordingly.

The denim business witnessed a 11% sales growth during the quarter and stood at Rs 236 crore backed by higher realisation in the domestic as well as in the export markets, while EBlTDA stood at Rs 23 crore.

Sales in the tools & hardware segment grew by 22% to Rs 114 crore led by both domestic as well as export market. EBITDA margins increased by 110 bps to 13%.

Sales in the auto component segment declined by 5% to Rs 51 crore. EBITDA margins improved by 240 bps to 13%.

Announcing the results, Mr. Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said, "We've completed half year of FY 13-14 on o positive note. This has been possible due to our confidence in our Brands, Product quality and Strong pan-India distribution network, coupled with continued thrust being given on strategic and tactical plans. We continue to remain bullish on the Indian consumption story. Our strategy to enter and consolidate our presence in smaller towns and cities with our iconic brands is giving desired results. We will continue to focus on improving operational efficiencies, strengthening of our brand portfolio and expanding retail coverage to consolidate our end-to-end leadership position in the industry."

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

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