The Hindu Business Line : Raymond Q4 net falls on rise in input costs

RAYMOND'S net profit for the fourth quarter of 2004-05 fell to Rs 22.89 crore from Rs 41.33 crore. Its net sales were Rs 318.71 crore (Rs 294.67 crore).

The company attributed the lower profit to the full write-off of VRS payment of Rs 22 crore and a significant fall in other income to Rs 18.04 crore (Rs 43.60 crore).

Profitability was also impacted by pressure on margins due to rise in input costs, especially polyester, cotton and steel and increases in labour costs due to wage settlements entered during the year.

For the full year, net profit was down 37 per cent to Rs 83.15 crore (Rs 132.29 crore). Net sales increased to Rs 1,143.83 (Rs 1,023.41 crore). Exports during the year grew by 30 per cent to Rs 299 crore (Rs 230 crore).

The other income component was also lower at Rs 67.88 crore (Rs 102.20 crore) in the current year due to rising interest rate scenario and non-recurrence of extraordinary foreign exchange gains earned last year.

The board has recommended a dividend of 40 per cent.

Textile division sales grew to Rs 774 crore (Rs 709.06 crore) for the full year. Export sales rose 33 per cent to Rs 92 crore.

The board also approved the joint venture proposal with MOB, France, to manufacture files and rasps in India at a total cost of Rs 21 crore.

The unit will come up in Chiplun, Maharashtra and MOB Outillage SA, a hand-tools manufacturer, will hold 10 per cent stake in it. Raymond hopes to consolidate its files & tools division's position worldwide through the venture.

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