The Hindu Business Line : Raymond net profit rises 25.6%

Raymond Ltd has posted a 25.6 per cent increase in net profit at Rs 38.37 crore for the quarter ended December 31, 2006, compared with Rs 30.55 crore a year ago.

However, it reported a 16.17 per cent dip in net sales, at Rs 297.25 crore (Rs 345.34 crore).

The decline was due to the transfer of its denim business to a joint venture with UCO NV of Belgium in August 2006, said a statement from the company.

The company's textile division registered sales at Rs 251.43 crore (Rs 224.12 crore), after a growth of 12 per cent.

The division sold 68.4 lakh metres of fabric as against 59.4 lakh metres.

Sales of the files and tools division grew 11 per cent, to stand at Rs 42.79 crore (Rs 38.53 crore).

During the quarter, Raymond entered into a joint venture with Grotto SpA of Italy for retailing of casual wear and accessories under the `GAS' brand.

"The company has identified retailing as its thrust area for future growth in the branded textiles and apparel space. The company has embarked on an aggressive expansion plan for increasing its retail penetration and also entered into strategic partnerships with leading international players to enter into new product categories," said Mr Gautam Hari Singhania, Chairman and Managing Director, Raymond Ltd.

Shares of the company rose 0.63 per cent to close at Rs 398.50 on the BSE.

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