Raymond Q1FY17 results were very discouraging. The company ended Q1FY17 with a net loss of Rs.17 crore v/s loss of Rs.14 crore in Q1FY16. Its total income was at Rs.1062 crore, up 4% (YoY). It also posted an EBITDA at Rs.36 crore, up 4% and margins actually improved marginally from 3.3% to 3.4%. What really did the company in was the interest outgo; for the current Q1 it was at Rs.45 crore v/s Rs.47 crore (YoY).

The company’s branded apparel section did not do too well where EBITDA slipped 170% to an increased loss of Rs.15 crore. This was due to lower gross margins on account of EOSS, higher cotton prices, investments in e-commerce along with one time gain of Rs.4 crore towards sale of assets in previous period. In the retail segment, it currently has 2051 stores and in Q1, it added 20 new stores and closed 20 stores, completed 8 stores renovation and 18 stores are under renovation.