Raymond Q4 net profit rises multi fold to Rs56cr, revenue up 9% yoy; Stock spurts 6%

Strong profitable growth leads to debt reduction. Operating cost at Rs408cr, lower by 26% yoy from Rs551cr Q4FY20 driven by continued focus on cost rationalisation.

May 07, 2021 09:05 IST India Infoline News Service

Raymond Limited on Thursday announced its audited financial results for the year ended March 31, 2021. The company’s consolidated Net profit stood at Rs56cr in Q4FY21 against a loss of Rs68cr in Q4FY20.

The company’s revenue stood at Rs1,407cr, higher by 9% yoy from Rs1,291cr in Q4FY20. Operating cost at Rs408cr, lower by 26% yoy from Rs551cr Q4FY20 driven by continued focus on cost rationalisation.

Consolidated EBITDA margin of the company was higher at 14.0% vs. 0.4% in Q4FY20. Net debt was reduced by Rs167cr in March 2021 to Rs1,416cr from Rs1,583cr in December 2020, driven by focused working capital management and cost rationalization. 4th consecutive quarter of net debt reduction during the pandemic period.

For the fiscal year FY21, company’s consolidated revenue at Rs3,648cr, 45% lower than Rs6,578cr in FY20. Operating cost at Rs1,320cr, lower by 40% yoy basis than Rs2,207cr in FY20. EBITDA stood at Rs135cr in FY21 than Rs612cr in FY20. Net Debt reduced by Rs443cr from Rs1,859cr in March 2020 to Rs1,416cr in March 2021. Operating Cash flow generation of Rs702cr and Free Cash flow of Rs417cr in FY21.

“The last financial year has been an unprecedented one and we have been able to conclude it on a positive note in Q4. The quarter witnessed topline growth mainly driven by Branded Textile along with strong momentum maintained in Engineering and Real Estate businesses and overall higher profit margins, led by focused efforts on reducing operational costs.

We began the new fiscal with higher number of wedding dates and encouraging consumer footfalls in retail outlets. However, with the second wave of Covid-19 and its intensity, we are witnessing lockdowns across cities thereby impacting sales. We are continuously ramping up our omni-channel capabilities to help serve our consumers across India. With vaccination gaining pace, we expect businesses to regain momentum in due course of time,” Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited, said.

Ata round 9.43 am, Raymond Ltd was trading near day's hight at Rs347.70 per piece up Rs19.55 or 5.96% from its previous closing of Rs328.15 per piece on the BSE.

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