Raymond Ltd Q1 revenue up 14%, Denim business reports double digit growth at 39%

Raymond Limited today announced its un-audited financial results for the quarter ended June 30, 2006. Revenue increased by 14% to Rs.298.46 crore for the quarter ended June 30, 2006 as compared to Rs. 261.78 crore in the same quarter of the previous year. The company posted a profit before tax and exceptional items of Rs.17.61 crore for the quarter ended June 30, 2006 against Rs.26.90 crore in the same quarter of previous year. The reduction in profitability was due to the provision for diminution in the market value of its current investments and loss on translation of foreign exchange earnings in line with the accounting policies.

The sales of Textile Division registered a growth of 8% to Rs. 156.34 crores as against Rs. 145.38 crores in the same quarter of the previous year. The Sales of the Files & Tools division were at Rs.37.10 crores. Inspite of difficult market conditions, the Denim Division reported a growth of 39% in the first quarter with Sales of Rs. 86.17 crores as compared to Rs.62.14 crores in the same quarter of the previous year, on the back of enhanced capacity.

The Textile Division reported a growth in Profit Before Interest and Tax of 13% largely driven by increase in the sales of worsted fabric. The Profit Before Interest and Tax of the Denim division grew by 177% due to increase in sales of denim fabric from the enhanced capacity and improved efficiencies. The Profit Before Interest and Tax of the Files division declined by 30% due to steep increase in the input costs.

Announcing the results, Mr. Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said, "The capacity addition in the textile business and the partnerships forged with leading international players will contribute significantly to the company’s business in the coming years."

Source : Equity Bulls

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