Raymond Ltd reported a 25.84 percent decline in its consolidated net profit to Rs. 196.48 crore in the fourth quarter ended on March 31, 2023. The leading textile and apparel maker recorded a net profit of Rs. 264.97 crore during the same period of the previous fiscal year.
The decrease in profit was due to exceptional items such as expected credit loss of trade receivables, write-down of inventories, and retrenchment compensation. However, Raymond’s revenue from operations rose 9.8 percent to Rs. 2,150.18 crore during the quarter under review, compared to Rs. 1,958.10 crore in the year-ago period. Total expenses of the Singhania family-controlled firm were at Rs. 1,939.27 crore, up 17.34 percent from Rs. 1,790.12 crore in the corresponding quarter. Total income in the March quarter was at Rs. 2,192.20, up 7.89 percent.
Raymond’s revenue from the textile segment stood at Rs. 901.79 crore, and it was Rs. 187.15 crore from shirting. The apparel segment reported a revenue of Rs. 331.54 crore, while the garment section recorded a revenue of Rs. 305.40 crore. The engineering business sales grew by 7 percent in the quarter to Rs. 219 crore, where tools and hardware business revenue was at Rs 115.49 crore, and it was Rs. 103.05 crore from auto components. However, its revenue from real estate and development of property in the March quarter was down 9.97 percent to Rs. 289.16 crore.
For the financial year ended March 31, 2023, Raymond’s net profit was up to two folds to Rs. 536.96 crore from Rs. 265.12 crore in FY22. Its consolidated revenue from operations in FY23 increased 32.95 percent to Rs. 8,214.72 crore from Rs. 6,178.51 crore a year ago. Raymond termed FY23 as a “landmark year” and delivered ” highest ever revenue and EBITDA of Rs. 8,337 crore and Rs. 1,322 crore, respectively.” Raymond has “substantially” reduced its consolidated net debt by Rs. 399 crore, which stands at Rs. 689 crore as of March 31, 2023.
The board of Raymond recommended the payment of a dividend of 30 percent on the equity share capital, i.e., Rs. 3 per equity share of the face value of Rs. 10 each for the financial year ending March 31, 2023. Raymond said that it has demonstrated strong revenue and profit performance for six consecutive quarters with Q4FY23. The garments segment reported strong sales, driven by continued high demand in US and Europe markets from existing customers and new customer acquisitions.
