Raymond returns to profitability in FY10

    Raymond returns to profitability in FY10

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    announced its audited financial results for the quarter and year ended March 31, 2010. In terms of (EBIT), the textile segment witnessed a profit of Rs.171 crore, up by 14 per cent, year-on-year basis. For the quarter ending March 31, 2010, the segment reported sales of Rs.325 crore and the textile segment EBIT jumped nearly three-fold to Rs.53 crore from Rs.14 crore in the previous quarter.

    The branded apparel business witnessed sale of Rs. 56 crore and EBIDTA of Rs.40 crore for the year, however quarterly EBITDA margins were impacted due to one-time rationalisation costs, despite an increase in sales.

    Raymond continues to operate one of the largest specialty retail networks in India in the textile and apparel space with 637 retail stores covering over 1.35 million square feet of retail space. In addition, the company also has 39 stores in Middle East and . During the 2009-10 financial year, the company has added 89 stores as part of its rapid store expansion. Like-to-like store sales growth for company-owned stores has been five per cent.

    The denim operations have turned EBITDA positive after closure of the loss-making units of US and Belgium.

    , CMD, Raymond Ltd said, “The year had an interesting blend of challenges and opportunities. At Raymond, we believe in harnessing both challenges and opportunities alike for the long-term benefit of our businesses. This reflects in the business performance of almost every Raymond business in the 2009-10 financial year. We focussed on and fortified our core strengths of brand supremacy, network expansion, world class manufacturing and restructured to develop flexibilities and enhance customer engagement. The growing power and discernment of the Indian consumer promises evry exciting times for us.”

    — IndiaRetailing Bureau