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Our Bureau

Mumbai , Jan. 21

HIGHER raw material costs in cotton and steel and a Rs 1.98-crore VRS payment write-off drove Raymond Ltd's net profit down by 18 per cent to Rs 25.08 crore for the quarter ended December 31, 2004, from Rs 30.54 crore in the year-ago period.

An increase in staff costs also impacted the bottomline. The company incurred an additional cost of Rs 7.24 crore in wages and benefits, including arrears.

Its income from operations for the quarter was Rs 299.16 crore (Rs 257.75 crore) and Other Income was Rs 15.86 crore (Rs 17.83 crore).

The Textile Division revenue grew 17 per cent to Rs 203.58 crore. Sales volume stood at 5.5 million metres. Export growth of this division grew 77 per cent in value at Rs 23 crore.

The Files and Tools Division revenue grew to Rs 36.55 crore (Rs 34.56 crore). During the quarter, the company closed the Files Division's Thane plant operations and offered employees a VRS. This is expected to benefit the division.

Denim division revenues grew 18 per cent to Rs 58.16 crore. Its export growth was higher by about 30 per cent at Rs 35 crore (Rs 27 crore).

The company said the benefits of its rightsizing initiatives would accrue in the future. Continued buoyancy in all its businesses, especially in exports, would help it achieve its planned results.

"The company's expansion plans in denim fabric and jeans manufacturing are proceeding as planned. The company's formal trouser and jacket manufacturing facility in Bangalore, which has commenced commercial production, has evinced keen interest from large foreign buyers," Raymond said in a news release quoting its Chairman and Managing Director, Mr Gautam Singhania.

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