Raymond jumps after turnaround Q4 numbers

Raymond rose 3.05% to Rs 338.15 after the company's consolidated net profit stood at Rs 56 crore in Q4 FY21 compared with net loss of Rs 68 crore in Q4 FY20.

On a consolidated basis, net sales gained 6.8% to Rs 1,365.66 crore in Q4 FY21 over Q4 FY20. EBITDA stood at Rs 197 crore in Q4 FY21 from Rs 5 crore in Q4 FY20. EBITDA margin improved to 14% in Q4 March 2021 as against 0.4% n Q4 March 2020.

The net debt reduced by Rs 167 crore to Rs 1,416 crore in March 2021 from Rs 1,583 crore in December 2020, driven by focused working capital management and cost rationalization. The Q4 FY21 consecutive quarter of net debt reduction during the pandemic period.

On a segmental basis, branded textile segment sales stood at Rs 722 crore, growing 24% over previous year, driven by higher sales in the trade channels due to higher number of wedding dates foreseen in April-June quarter of current financial year, FY22. The suiting business grew 24% while B2C shirting grew 40% over previous year led by good response for wedding collection bookings in February & March. The segment EBITDA margin stood at 22.6% led by improved operational efficiencies.

Branded apparel segment sales stood at Rs 175 crore witnessing a lower recovery of 60% of previous year levels, mainly due to our continued control on primary channel sales to ensure adequate inventory in the supply chain. The EBITDA loss was at Rs 19 crore due to higher discounted sales and extended EOSS period.

Garmenting segment sales stood at Rs 126 crore mainly due to recovery in bulk business, with gradual opening up of global markets. EBITDA margin for the quarter at -2.3% due to lower sales.

Commenting on Q4 performance, Gautam Hari Singhania, chairman and managing director (MD) of Raymond, said: "The last financial year has been an unprecedented one and we have been able to conclude it on a positive note in Q4. The quarter witnessed topline growth mainly driven by Branded Textile along with strong momentum maintained in Engineering and Real Estate businesses and overall higher profit margins, led by focused efforts on reducing operational costs. We began the new fiscal with higher number of wedding dates and encouraging consumer footfalls in retail outlets. However, with the second wave of COVID-19 and its intensity, we are witnessing lockdowns across cities thereby impacting sales. We are continuously ramping up our omni-channel capabilities to help serve our consumers across India. With vaccination gaining pace, we expect businesses to regain momentum in due course of time."

Raymond is one of the largest integrated worsted suiting manufacturer that offers end-to-end solutions for fabrics and garmenting.

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