Raymond crumples and falls

Raymond, which had hit a new high yesterday at Rs.518 in anticipation of robust Q2 numbers is today currently the top loser on the BSE. It is down almost 5% at Rs.465.70, its present intra day low point.

The 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.