The Hindu Business Line : Raymond net up 46%, proposes 55 pc

RAYMOND Ltd's net profit grew by 46.56 per cent to Rs 132.29 crores for the year ending March 31, 2004 over Rs 90.26 crore in the same period, last year. This includes an exceptional item (a net gain of Rs 3.46 crore).

Higher revenue and cost efficiencies helped drive profitability. Besides, other income rose to Rs 102.51 crore (Rs 40.46 crore).

The company's gross turnover moved up by eight per cent to Rs 1,104.37 crore (Rs 1,020.58 crore).

After appropriating Rs 2.50 crore (Rs 3.75 crore) to the Debenture Redemption Reserve and Rs 60 crores (Rs 67 crore) to General Reserves, the board recommended an enhanced dividend of 55 per cent (previously 45 per cent).

The year saw wool prices spiralling and difficult conditions in the international market. However, the Textile Division's sales grew to Rs 721.38 crore (Rs 680.63 crore) and profit before interest and tax rose by 13.31 per cent at Rs 121.70 crore (Rs 107.40 crore).

The sales of the Denim Division rose 44.76 per cent to Rs 186.75 crore (Rs.129.01 crore) even cotton prices grew for much of the year. Operating profit declined by 11 per cent because of higher cotton prices and lower export realisations caused by the depreciating rupee. The division, which now exports 50 per cent of its production, has taken steps to enhance the product mix.Its strategy entails the judicious sourcing from international and domestic suppliers and an optimal mixing varieties of cotton.

According to Mr P. K. Bhandari, Deputy Group President, Raymond Ltd, the denim division turnover increased by 40 per cent as its additional capacity of 20 million metres came into operation in the last quarter of the year.

The overall performance of the Files and Tools Division was satisfactory despite the files business being almost stagnant globally and the steep increase in the cost of steel. The Division recorded sales of Rs 134.97 crore (Rs 129.95 crore). Its exports grew 7 per cent despite lower realisations.

Regarding the performances of Colorplus, Mr Bhandari said that Colorplus' total revenue rose to Rs 79 crore (Rs 66 crore).

He added that this year was unusual because the chief raw materials in its major businesses, wool, cotton and steel, had witnessed price increases in the first three quarters, which impacted the company by Rs 20 crore. This was offset by cost cutting efforts. The company also successfully reduced its quantum of working capital employed to Rs 462.27 crore .