INDIA: Raymond swings to Q3 profit despite challenges
Indian textiles and apparel manufacturer Raymond Ltd has swung to a third quarter profit thanks to strong sales in its textiles, denim and branded apparel segments.
Despite posting a profit of INR610m (US$12.1m) in the three months to 31 December, the company said the business environment remains "challenging," and that consumer sentiment has been impacted by high inflation.
Net sales in the period rose 11.7% to INR9.52bn, up from INR8.52bn the year before. The company said its textile segment sales were up 16% per cent to INR5.14bn on the back of "high realisations and volume growth."
Sales in the branded apparel business rose 7% to INR1.98bn, and the Indian operations of its denim business were up 11% to INR1.71bn. The company now operates 807 stores.
Commenting on the results, Raymond managaing director and chairman Gautam Hari Singhania said: "After a robust performance in the first half of the current financial year, the third quarter has been more challenging.
"However, we have a strong portfolio of power brands which have shown resilience during these times. We also believe this is a short-term phenomenon and the long-term domestic consumption story in India is well intact.
"We will continue to focus on our core strategies and strengths and will continue to roll out our retail expansion plan in smaller towns and cities as envisaged."
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