In An Expansionary Mode

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Feb 01 2004, 00:00 IST

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The share price of Raymond has increased by 112 per cent over the past eight months on BSE to Rs 191 as on January 29, 2004. On December 30, 2003 the stock had reached its 52-week high of Rs 245. The company has been banking on core competence by divesting unrelated businesses like steel, cement and synthetics, contributing 40 per cent to the turnover. It has been concentrating on the core areas of textiles and garments. In the process, equity base has been restructured and debts reduced substantially.

The company has posted good performance over the quarter to December 2003. It reported a 60 per cent y-o-y rise in net profit to Rs 30.55 crore, while net sales for the quarter increased marginally to Rs 277.44 crore (Rs 275.38 crore). Revenue from the textiles division was slightly lower at Rs 192.34 crore as compared to Rs 200.35 crore, whereas sales volumes were lower at 5.5 million metres (5.63 million metres). But despite a steep rise in the prices of wool and polyester, the textile division achieved a higher profit of Rs 28.3 crore (Rs 22.51 crore). This has been attributed to better cost management.

The denim division revenues were up by 33.13 per cent to Rs 51.31 crore and the files & tools division (an unrelated area) witnessed a fall in revenue to Rs 37.01 crore (Rs 38.12 crore). The company reported lower profits in this division due to rise in the steel prices after July 2003.

In spite of the

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