In view of high inventory and overall increase in expenses, India’s largest integrated worsted suiting manufacturer Raymond posted Rs. 81.93 crore consolidated net profit for the quarter ended on June 30, down 52.15 % from Rs. 157.10 crore it had reported in the same period last year.
The company’s expenses on manufacturing and operating (stores & spares consumed, power & fuel, job work charges etc.) increased to Rs. 230.09 crore in the quarter as against Rs. 143.50 crore last year during the corresponding period.
The company’s net revenue increased by 104% on a year-on-year basis from Rs. 862 crore to Rs. 1,754 crore. Ebitda remained at 235 crore for the quarter as compared to 7 crore in Q122. Percentagewise Ebitda increased by 1,260 bps from 0.8 % to 13.8%.
According to the company, Q1 witnessed temporarily high inventory on account of higher production to address the upcoming festival and wedding season sales. This led to increase in working capital, resulting in an increase in net debt by 22 Crore to 222 crore to 1,310 crore.
Commenting on the company’s performance for April-June, Gautam Singhania, chairman & managing director, Raymond, said that the company continued focus on operating and financial parameters across businesses, supported by expansive network, quality products and services led to highest first quarterly revenue and profitability.
“The growing demand in both domestic and international markets along with new customer acquisitions in international markets has been rewarding for the quarter. Furthermore, our real estate project is progressing well with sales velocity and construction pace of both the projects at Thane. This helps us to deliver strong performance for our Real estate business,” said Singhania.
During the quarter Raymond’s branded textile segment sales reported growth of 129 % at Rs 648 crore as against Rs 283 crore in Q1FY22. The topline was 8% higher than pre-covid levels of Q1FY20 as well. The company’s retail stores saw higher footfalls with consumers contributing to incremental spends. The segment reported EBITDA margin of 17.6% driven mainly due to enhanced operational efficiencies.
In Branded Apparel sales remained at Rs 262 crore in Q1FY23. The segment reported EBITDA margin of 5.6% as compared to EBITDA loss in the previous year. In The Raymond Shop (TRS) network, the company witnessed 31% growth during the quarter in average transaction value (ATV). Garmenting segment reported sales in a quarter at Rs 247 crore, a growth of 153% as compared to Rs 98 crore in previous year, mainly driven by growth due to high demand from existing customers in US & Europe markets and new customer acquisitions.