Raymond

The market is extremely disappointed with the Q4FY17 performance of Raymond. Though its consolidated net sales showed a rise of 5% (YoY) at Rs.1474 crore, the higher expenses (up 7%) pushed down the bottomline.

Consolidated EBITDA was down 19% at Rs.120 crore and margins fell from 10.5% to 8.10%. Net profit for the quarter came in at Rs.34 crore, down by 38%.

In terms of segment-wise breakup, Branded Textiles did better than Q3. Its Suiting sales were down by 5% and volume by 2%. Shirting sales were up by 5% and volume up by 11% and Made-To-Measurement (MTM), its new horizontal expansion registered a growth of 38% and LTL growth of 7%.

Branded Apparels  had showed  subdued sales in Q3 but seems to have bounced back in Q4 with a 16% (YoY) increase in sales. EBITDA margins deteriorated due to impact on gross margins on account of EOSS and statutory levies.

Its Retail vertical was flat. It added 27 new stores and closed 14 stores while completed 9 stores renovation and currently 12 stores are under renovation. High Value Cotton Shirting continues to bleed and it showed a degrowth with fall in volumes.

The company ended Fy17 with a 65% (YoY) drop in consolidated net profit at Rs.30 crore.