INDIA: Raymond Q3 profit slides 74%
- Q3 profit plummets 74% to INR12.84bn
- Sales up 10% to INR10.49bn
- Textile segment sales rose 8% to INR5.54bn
Indian textiles and apparel manufacturer Raymond Ltd has seen its third-quarter net profit plummet on the back of higher costs and a "challenging" trading environment - but said it remains confident in its outlook.
Profit declined 74% to INR12.84bn (US$239.1m) for the three months to 31 December, compared to INR50.26bn the same period last year.
However, net sales increased 10% to INR10.49bn, compared to INR9.53bn the same period the prior year.
Raymond said said its textile segment sales rose 8% to INR5.54bn. However, margins were impacted by higher input costs and under-utilisation of capacities. The Indian operations of its denim business witnessed 14% sales growth to INR1.96bn.
Meanwhile, the branded apparel business saw net sales decline 7% to INR1.84bn on the back of higher discounted sales and a change in channel mix.
Commenting on the results, chairman and managing director Gautam Hari Singhania said: "The third quarter of the current financial year has been more challenging.
"Margins of our worsted suiting's business have been under pressure due to higher input costs and inflation, our apparel business suffered from high inventory overhang impacting margins.
"We have put in place various processes and cost improvement initiatives to tackle the same. We are confident that our initiatives will bear fruitful results in the time to come.
"Despite a tough quarter gone by, we remain confident about the consumption demand; and the strategic direction of our business and continue to invest in brand building, retail and in improving operational efficiencies."
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Indian textile and clothing manufacturer and retailer Raymond Ltd has seen its profit for the last financial year plummet 82%, blaming high inflation and interest rates, subdued market conditions, and...
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