For financial year 2018-19, the Branded Apparel segment of Raymond has recorded sales of `489 cr, up by 21 per cent against the previous year. The growth was driven by strong performance in MBO channel & well supported by EBO and LFS channels. LTL EBITDA margins rose to 7.0 per cent, mainly due to better sales channel mix and operational efficiencies. The sales of Branded Textile segment was posted at Rs. 832 cr, higher by 4 per cent over previous year, led by 3 per cent growth in the suiting business and 9 per cent growth in the shirting business. LTL EBITDA margins (excluding common cost allocation) were 16.7 per cent as compared to 19.5 per cent mainly due to higher advertisement and sales promotion spends and channel stock correction in shirting business.
As on March 31, 2019 the retail stores count stood at 1,444 across all formats covering about 2.4 mn square feet of retail space. In-line with stated asset light network expansion strategy, Raymond opened 275 stores on franchisee model during the year. Garmenting segment sales stood at Rs. 212 cr, up by 5 per cent over previous year led by exports growth in US. LTL EBITDA margins lower at 4.3 per cent over 6.9 per cent in previous year mainly due to lower utilisation of Ethiopia plant capacity and initial cost of B2B Made-to-Measure services in US.
High Value Cotton Shirting segment sales were Rs. 156 cr, growth by 7 per cent mainly on account of yarn sales from Amravati plant. LTL EBITDA margins improved to 13.8 per cent as compared to 9.1 per cent in the previous year mainly due to better product mix and increased efficiency on account of stabilisation of Amravati operations.
“We are delighted to report the continued strong profitable growth in FYl9 as the organisation is challenging itself to achieve larger goals that we have set through our vision of Raymond Reimagined. In the process of capturing the untapped potential in semi-urban and rural areas, we achieved yet another milestone by opening 280+ Raymond stores in FYl9. I am happy to state that our Amravati plant has stabilised with optimal utilisation and is contributing positively to the overall margins. Building capabilities and creating tech enabled platforms has been the key highlight as we continue with our growth momentum having tomorrow on our mind,” Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited, said.