Home Fashion Raymond Q1 net loss widens to Rs 247.60 crore

Raymond Q1 net loss widens to Rs 247.60 crore

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Ltd on Monday reported widening of its consolidated net loss to Rs 247.60 crore in the first quarter ended June 2020, impacted by and subsequent lockdowns.

Raymond Q1 net loss widens to Rs 247.60 crore

The company had a net loss of Rs 12.20 crore during the April-June quarter of the previous fiscal, Raymond said in a regulatory filing.

Its revenue from operations was down 88.63 percent to Rs 163.16 crore during the quarter under review as against Rs 1,435.12 crore in the corresponding period of the previous fiscal.

Raymond’s total expenses were at Rs 543.87 crore in Q1/FY 2020-21, down 63.26 percent from Rs 1,480.51 crore a year ago.

“Q1 FY21 performance was impacted as foreknown due to continuous lockdown amidst COVID pandemic,” said Raymond in a press statement.

According to the company, during lockdown 1.0 and 2.0, its retail stores remained closed and gradually reopened from lockdown 3.0 onwards with easing of restrictions.

Its 95 percent of store network spread across over 600 towns and cities are operational. Moreover, consumer demand is back to 50 percent of previous year levels in our The Raymond Shop (TRS) network, it added.

Commenting on the performance, , CMD, Raymond said, “Raymond’s expansive retail network remains key to the business and it is re-assuring to see that over 95 per cent of our retail stores are now operational. While tiding through the tough times, managing effective cash flows through significant cost reduction coupled with maintaining liquidity levels and debt reduction have been the highlights of the quarter.”

It’s revenue from textile was down 97.23 percent to Rs 16.58 crore as against Rs 600.34 crore of the corresponding quarter.

While, revenue from shirting was down 96.82 percent to Rs 5.52 crore as against Rs 174.09 crore of Q1/FY 2019-20.

“Textile and apparel industry has been impacted due to lockdown and related lower consumer demand, primary sales as well as secondary sales were impacted in Q1,” said Raymond.

Its revenue from garmenting was down 47.58 percent to Rs 99.73 crore as against Rs 190.26 crore.

While Raymond’s revenue from other segment such as tools and hardware was at Rs 20.25 crore, Rs 21.03 crore from auto components and Rs 4.73 crore from real estate and development of property.

With ease in restrictions now, the company is witnessing that consumer sentiment is gradually picking up across the country, Singhania added.

“As we move closer to the festive and wedding season, it is expected that the increased consumer spending will bring in the much needed recovery,” he said.