Raymond posts 86 percent decline in Q2 net profit

Textile company Raymond Ltd. on Wednesday reported a decline of 86 percent in its net consolidated profit at Rs.9 crore for the second quarter of fiscal 2015-16 as against Rs.68 crore in the corresponding quarter of the last fiscal.

Its net consolidated revenue, however, increased by two percent at Rs.1,508 crore in the July-September time period as compared to Rs.1,472 crore in the same timeframe in the last fiscal.

Although its apparel segment sales grew by 16 percent at Rs.333 crore, its EBITDA (earnings before interest, taxes, depreciation, and amortization) suffered due to investment in retail network expansion.

Sales in the textiles segment, however, remained flat at Rs.697 crore.

"The second quarter witnessed subdued consumer demand with extended end of sales period. In addition, our continued investments in brand building and retail network expansion, besides underperformance of the engineering business impacted the quarterly results," the company's wholetime director, H. Sunder said in a statement.