The Hindu Business Line : Raymond net jumps 60 pc on better operations

RAYMOND Ltd's announced a 60 per cent jump in its third quarter 2003 net profit at Rs 30.55 crore over Rs 19.10 crore against the corresponding year-ago period. Net sales were at Rs 277.44 crore (Rs 275.38 crore).

Improved operational efficiencies, a spurt in other income and an increase in realisations helped the company to report higher profits.

According to Mr Nabankur Gupta, Group President, Raymond, the 190 per cent increase in other income to Rs 20.64 crore (Rs 7.11 crore) was due to positive treasury activities such as investments in bonds, shares and mutual funds. This was in addition to better operations.

He added that net profit also rose because of better price realisations per metre of fabric and higher workflow efficiencies. Its interest income rose to Rs 4.88 crore (Rs 44 lakh).

The revenue of the textiles division stood at Rs 192.34 crore (Rs 200.35 crore) and the sales volume at 5.50 million meters (5.63 million meters). Despite a steep rise in the prices of wool and polyester, the textile division achieved a higher profit of Rs 28.30 crore (Rs 22.51 crore) because of continuous better management of costs. To cater to the increasing demand in the domestic and international markets for quality garments, the company has taken initiatives to set up world-class garment manufacturing facilities at Bangalore.

The denim division recorded growth of 33.13 per cent in its revenue at Rs 51.31 crore (Rs 38.54 crore) and 32.17 per cent in volume at 4.56 million metres (3.45 million metres). Despite higher volume, the denim division's profitability was affected by a continuous rise in cotton prices in the current year, and teething problems in certain machineries. These problems have been set right and cotton prices have stabilised. Therefore, the division expects to achieve better results in the next quarter.