INDIA: Raymond swings to first-quarter net loss
Indian clothing manufacturer Raymond swung to a first-quarter net loss, despite the company recording a rise in sales.
The company last week recorded a net loss of INR350m (US$6.3m) over the quarter ended 30 June, against a profit of INR110m in the same period of the previous year. Sales rose 10% over the quarter to INR8.37bn.
The group's branded apparel business saw sales fall 3% to INR1.71bn as EBITDA more than halved to INR100m from INR230m. It attributed the decline to poor consumer sentiment combined with an early start to its end of season sale.
Its cotton shirting business posted a 29% sales gain to INR680m, while EBITDA rose 82% to INR100m. Meanwhile, sales in its denim division increased 3% to INR1.98bn as EBITDA increased 18% to INR250m.
"Keeping in line with industry sentiments, the first quarter results of the 2012-13 financial year for Raymond is reflecting a subdued trend," said chairman and managing director Gautam Hari Singhania.
"We are hopeful that the global economic uncertainties and the domestic scenario will improve going forward. We are therefore confident that this should bolster market sentiment and help the industry steer back on a growth path in the second half of the financial year."
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