Raymond posts Q1 net loss of ₹35 crore1 min read . Updated: 25 Jul 2012, 10:02 PM IST
Raymond posts Q1 net loss of ₹35 crore
Bangalore: Mumbai-based Raymond Ltd on Wednesday posted a net loss of ₹ 35 crore for the June-ended quarter against a net profit of ₹ 11 crore a year ago, blaming higher raw material costs and slowing demand.
Net sales in the branded apparel business fell 3% to ₹ 171 crore due to poor consumer sentiment and an “early end of season sale," Raymond said in a statement.
Raymond sells brands such as Park Avenue, Parx and Color Plus. It restructured its portfolio in the past two years and has closed loss-making brands such as Manzoni and Zapp! It also shut its overseas denim operations.
The earnings reflected a subdued trend in line with industry sentiment, Gautam Singhania, chairman and managing director, said in the statement.
“We are hopeful that the global economic uncertainties and the domestic scenario will improve going forward. We are therefore confident that this should bolster market sentiment and help the industry steer back on a growth path in the second half of the financial year," Singhania said.
Though sales in Raymond’s textile segment increased during the quarter, margins were affected due to a challenging domestic environment and an increase in input costs, the company said.
Raymond has 867 stores covering more than 1.6 million sq.ft. of retail space. It added 28 stores during the quarter and closed 14.
A June report on Raymond by Credit Suisse Research said that while demand in the near term may be challenging, the medium-term consumption story is attractive and the conclusion of Raymond’s various restructuring measures should help improve cash flow.
The results were announced after market hours. The stock fell 2.04% to ₹ 349.85, while the benchmark Sensex remained unchanged at 16,846.05 points.