Raymond narrows net loss to Rs157cr in Q1FY22; Stock under pressure

The company’s net revenue rose 289% yoy to Rs862cr in Q1FY22 compared to Rs222cr in Q1FY21.

Jul 30, 2021 11:07 IST India Infoline News Service

Raymond Limited on Thursday announced its financial results for the quarter ended June 30, 2021. Net Revenue rose 289% yoy to Rs862cr in Q1FY22 compared to Rs222cr in Q1FY21. Continued focused approach on optimizing operating expenses resulted in controlling costs during the quarter, company said in a filing on Thursday.

Opex was 26% yoy higher at Rs347cr than Rs275cr in Q1FY21. The increase in Opex is primarily due to increased level of operations, it said.

The company reported net loss at Rs157cr compared to Rs242cr in Q1FY21. PBT loss Rs152cr compared to loss of Rs322cr in Q1FY21. The company’s EBITDA was Rs7cr in Q1FY22 compared to loss of Rs167cr in Q1FY21. EBITDA margin was 0.8% in against -75.2%.

Net Debt at Rs1,617cr as on June 30, 2021 as compared to Rs1,416cr as on March 31, 2021 due to increased operational and working capital requirement. Liquidity maintained at Rs. 645 Cr (cash & cash equivalents) as of 30th June, 2021

Around noon, Raymond Ltd was trading at Rs445.75 per piece down by Rs7.65 or 1.69% from its previous closing of Rs453.40 per piece on the BSE.

“The second wave of pandemic resulted in stricter lockdowns across India, impacting sales recovery during the quarter. As the unlocking began, we witnessed increasing sales in the later half of June month,” the company said.

“The quarter gone by was a difficult one as it was severely impacted by the second wave of the pandemic. However, we were able to handle the situation better with past learnings and closed the quarter with higher revenues. The consumer sentiments were seen positive during the month of June with higher number of wedding dates,” Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited, said.

“We were able to maintain strong profitable momentum in our Engineering business as we focused on the exports as domestic market was impacted due to lockdown. Rapid construction in our Real Estate business is seen as trigger by our consumers and aided the topline. With vaccination drive gaining pace, we are cautiously optimistic of consumer demand picking up with upcoming festival and wedding season,” Singhania added.

Segmental performance:
  • Branded Textile segment sales at Rs283cr as compared to Rs17cr in previous year.
  • Branded Apparel segment sales stood at Rs75cr. Both trade and retail channels impacted primarily due to continued lockdowns.
  • Retail store network stands at 1,459 as on June 30, 2021. The operational stores are adhering to all COVID-19 related guidelines. Majority of the retail outlets were operating however with restrictions during lockdowns – limited hours on weekdays, weekend closures and opening on alternate days impacted footfalls leading to slower recovery in retail sales.
  • Garmenting segment sales at Rs98cr as compared to Rs100cr in previous year. The recovery was driven by gradual opening up of the global markets.
  • High Value Cotton Shirting segment sales at Rs101cr as compared to Rs6cr in previous year.
  • Tools & Hardware segment sales at Rs110cr as compared to Rs20cr in previous year.
  • Auto Components segment sales at Rs70cr as compared to Rs21cr in previous year.
  • Real Estate segment sales at Rs130 Cr with EBITDA margin for the quarter at 29.0%

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