Raymond steers higher revenue during the quarter despite lockdown

Raymond Limited has announced its financial results for the quarter ended 30th June, 2021.

Key highlights of the quarter

- Second wave of pandemic resulted in stricter lockdowns across India, impacting sales recovery during the quarter. As the unlocking began, we witnessed increasing sales in later half of the June month

- Consolidated revenue stands at Rs. 862 Cr, up 289% as compared to Rs. 222 Cr in Q1FY21

- Continued focused approach on optimizing operating expenses resulted in controlling costs during the quarter. The increase in opex from Rs. 275 Cr in Q1FY21 to Rs. 347 Cr in Q1FY22 is primarily due to increased level of operations

- Reported EBITDA of Rs. 7 Cr for the quarter as compared to EBITDA loss of Rs. 167 Cr in Q1FY21

- Net Debt at Rs. 1,617 Cr as on 30th June, 2021 as compared to Rs. 1,416 Cr as on 31st March, 2021 due to increased operational and working capital requirement

- Liquidity maintained at Rs. 645 Cr (cash & cash equivalents) as on 30th June, 2021

Commenting on the quarter performance, Mr. Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said, "The quarter gone by was a difficult one as it was severely impacted by the second wave of pandemic. However, we were able to handle the situation better with past learnings and closed the quarter with higher revenues. The consumer sentiments were seen positive during the month of June with higher number of wedding dates.

We were able to maintain strong profitable momentum in our Engineering business as we focused on the exports as domestic market was impacted due to lockdown. Rapid construction in our Real Estate business is seen as trigger by our consumers and aided the topline. With vaccination drive gaining pace, we are cautiously optimistic of consumer demand picking up with upcoming festival and wedding season."

Q1FY22 Segmental Performance: Post IND AS 116

Branded Textile segment sales at Rs. 283 Cr as compared to Rs. 17 Cr in previous year. The recovery was hampered due to local lockdowns across the country impacting the primary & secondary sales. However, the segment witnessed recovery in later half of June month as primary sales picked up with partial unlocking of states in a phased manner. The segment reported EBITDA loss of Rs. 21 Cr.

Branded Apparel segment sales stood at Rs. 75 Cr. Both trade and retail channels impacted primarily due to continued lockdowns. The EBO and LFS channels continued to be impacted as most of the malls across the country remained shut during the quarter. The segment reported EBITDA loss of Rs. 29 Cr.

Retail Operations:

- Our retail store network stands at 1,459 as on 30th June, 2021. The operational stores are adhering to all COVID-19 related guidelines.

- Majority of the retail outlets were operating however with restrictions during lockdowns - limited hours on weekdays, weekend closures and opening on alternate days impacted footfalls leading to slower recovery in retail sales.

Garmenting segment sales at Rs. 98 Cr as compared to Rs. 100 Cr in previous year. The recovery was driven by gradual opening up of the global markets. However, the domestic plant operations were impacted due to local lockdown resulting in deferment of certain deliveries. EBITDA margin for the quarter at 0.9%.

High Value Cotton Shirting segment sales at Rs. 101 Cr as compared to Rs. 6 Cr in previous year. The recovery led by higher number of orders from our B2B customers. EBITDA margin for the quarter at 6.2%

Tools & Hardware segment sales at Rs. 110 Cr as compared to Rs. 20 Cr in previous year. Sales mainly driven by exports in key markets of LATAM, Africa & Asia. EBITDA margin for the quarter at 11.3%

Auto Components segment sales at Rs. 70 Cr as compared to Rs. 21 Cr in previous year. Sales mainly driven by exports market and well supported by recovery in auto sector in the domestic market. EBITDA margin for the quarter at 15.9%

Real Estate segment sales at Rs. 130 Cr with EBITDA margin for the quarter at 29.0%. The business continued fast paced construction activity during the quarter in all ten towers of the project. Constant active engagement with customers during lockdown through digital mediums coupled with sustained lower home loan interest rates triggered conversions of enquiries into bookings especially in the month of June. Overall, received 61 bookings in Q1FY22 resulting in total 1,448 units booked (over 60% of total inventory launched) till Jun-2021 with a booking value of Rs. 1,386 Cr.

Shares of RAYMOND LTD. was last trading in BSE at Rs. 453.4 as compared to the previous close of Rs. 465.8. The total number of shares traded during the day was 96095 in over 2592 trades.

The stock hit an intraday high of Rs. 473 and intraday low of 450.6. The net turnover during the day was Rs. 44564679.

Source : Equity Bulls

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