Raymond jumps after Q4 earnings

The result was announced after market hours on Friday, 26 April 2013.

Meanwhile, the BSE Sensex was up 100.78 points, or 0.52%, to 19,387.50.

On BSE, 1.27 lakh shares were traded in the counter as against an average daily volume of 1.11 lakh shares in the past one quarter.

The stock hit a high of Rs 282.60 and a low of Rs 268.55 so far during the day. The stock had hit a 52-week high of Rs 488.90 on 11 December 2012. The stock had hit a 52-week low of Rs 245.25 on 10 April 2013.

The stock had underperformed the market over the past one month till 26 April 2013, falling 0.95% compared with the Sensex's 3.11% rise. The scrip had also underperformed the market in past one quarter, sliding 30.82% as against Sensex's 4.06% fall.

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 13% to Rs 1069 crore in Q4 March 2013 over Q4 March 2012. Earnings before interest taxes depreciation and amortization (EBITDA) margin remained unchanged at 10% in Q4 March 2013 over Q4 March 2012.

Consolidated profit before tax (PBT), before exceptional items surged 324% to Rs 13 crore in Q4 March 2013 over Q4 March 2012. PBT after exceptional items surged 515% to Rs 19 crore in Q4 March 2013 over Q4 March 2012.

However, profit after tax (PAT) slumped 80% to Rs 0.61 crore in Q4 March 2013 over Q4 March 2012, mainly due to reversal of deferred tax asset provisioning.

The textile segment (standalone) sales in Q4 March 2013 witnessed an increase of 9% at Rs 555 crore, mainly represented by volume growth. This segment reported earnings before interest and tax (EBIT) of Rs 74 crore.

Sales of branded apparel business stood at Rs 179 crore, up 9% and reported a loss at the EBITDA level of Rs 13 crore during the quarter, mainly due to investory provisioning, retail expenses of new stores and reversal of cenvat credit consequent to abolition of excise on branded apparel.

Raymond's retail network has crossed 900 stores mark. The stores count as at 31 March 2013 stood at 922 across all formats, including 41 stores in the Middle East and SAARC region covering over 1.8 million square feet of retail space. During Q4 MArch 2013, the secondary sales across all stores were 2% higher over the same period in the previous year.

The high value shirting fabric business grew by 25% during the quarter. While the sales stood at Rs 70 crore, EBITDA declines due to provision made for receivables due from the joint venture partner, consequent to the JB partner seeking voluntary liquidation of its operation in Italy. The company has initiated the process of acquiring JV partner's stake, vide the JV agreement at a significantly discounted price to fair value.

EBITDA for the Indian operations of the denim business for the quartter rose 14% to Rs 24 crore. Margins have also witnessed improvement backed by the higher exports.

Announcing the results, Mr Gautam Hari Singhania, chairman and managing director, Raymond said, "The financial year 2012-13 witnessed slowing down of Indian economy, subdued market / consumer sentiments, high interest and inflation rates prevailed for most part of the year. This has therefore been a year of consolidated for us and our focus has been on improving the operation efficiencies through supply chain management initiatives, cost rationalisation and consolidation of apparel business operations, which resulted in pullback of profitability and improvement in our cash flow."

These together with continuing investment in brand building, retail expansion and enhanced consumer experience will provide us with a platform to look forward to better times ahead, Raymond said in a statement.

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

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