Raymond

Raymond’s Q2FY15 numbers were disappointing to say the least. Its consolidated Net Sales for the quarter grew by 19% (YoY) at Rs. 1,454 crore. EBITDA declined by 11% to Rs 183 crore and net profit slipped 26% at Rs.68 crore. EBITDA margin slipped sharply, from 16.5% to 12.4% and Net profit margin slipped from 7.4% to 4.6%. The margins have been impacted due to product mix, higher input cost and stores renovation.

Operating costs have surged 22% led by higher manufacturing and operating costs and higher employee costs. Interest costs are up 8% at Rs.52 crore.  In terms of segment wise break up, textile business saw a 23% jump in sales but EBITDA fell from 26.8% to 18.7% , ditto for apparel business, whose EBITDA fell 5% due to increased ad spends. Luxury cotton shirting’s EBITDA rose from 5.8% to 16.8% on increased realisations but more on account of one time income of Rs.6.5 crore. In Garments segment, EBITDA fell from 12.6% to 10.3% due to rupee appreciation against dollar and higher employment cost. On the other hand, denim business improved due to better export.

During the quarter, it added 16 new stores and closed 6 stores while completed 18 stores renovation and currently, 12 stores under renovation.