The Hindu Business Line : Raymond net dips by 38 pc

Raymond Ltd has recorded a net profit of Rs 11.21 crore for the quarter ended June 30, registering a decrease of 38.27 per cent compared to Rs 18.81 crore in the corresponding quarter last year.

The company said that 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.

Net sales rose to Rs 280.59 crore compared to Rs 245.59 crore in the same quarter of last fiscal. Total income has increased from Rs 261.78 crore to Rs 298.47 crore.

The Denim division reported a growth of 39 per cent in the first quarter with sales of Rs. 86.17 crore against Rs 62.14 crore in the same quarter of the previous year.

The textile division reported a growth in profit before interest and tax of 13 per cent largely driven by increase in the sales of worsted fabric. The PBIT of denim division grew by 177 per cent due to increase in sales of denim fabric from the enhanced capacity and improved efficiencies.

The files division's PBIT declined by 30 per cent due to steep increase in the input costs.

"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,'' the company said in a news release quoting its Chairman and Managing Director, Mr Gautam Hari Singhania.

Shares of Raymond fell by 5.11 per cent to close at Rs 366.70 on BSE.