Raymond net profit up by 46 per cent

Mumbai: Raymond Limited posted profit before tax and exceptional item at Rs. 183.13 crores (Rs.131.19 crore) for the year ended March 31, 2004, which is higher by 39.59 per cent as compared to the previous year. Net Profit, after provision for prior year adjustments, income and wealth taxes, was higher by 46.48 per cent at Rs.132.29 crore (Rs.90.25 crore). The gross turnover of the Company was higher by 7.34 per cent at Rs.1091.53 crore (Rs.1016.87 crore).

After appropriating Rs.2.50 crore (Rs.3.75 crore) to the Debenture Redemption Reserve and Rs. 60 crore (Rs.67 crore) to the General Reserves, the Board recommended an enhanced dividend of 55 per cent (45 per cent).

Despite spiraling wool prices and difficult conditions in the international market, the sales of the Textile Division registered a growth of 6per cent at Rs. 721.38 crore (Rs.680.63 crore) and the profit of the division rose by 13.31% at Rs.121.70 cores (Rs.107.40 crore).

Despite unabated rise in cotton prices, the sales of the Denim Division recorded an increase of 44.76 per cent at Rs.186.75 crore (Rs.129.01 crore).The operating profit of the Division declined by 11 per cent due to higher cotton prices and lower export realisation due to the appreciating rupee. The division, which is a net export earner, has taken steps to mitigate to some extent the impact of increase in cotton prices and the deprecating U.S. dollar by further enrichment of product mix, timely judicious sourcing from international and domestic suppliers and mixing varieties of cotton optimally. The Company has been nominated by major brands as a source for denim. The enhanced production capacity of 20 million metres became fully operational during the last quarter of the year under review. The overall performance of the Files and Tools Division was satisfactory despite the files business being almost stagnant globally and a steep increase in the cost of steel. The Division recorded sales of Rs.134.97 crores (Rs.129.95 crores). The exports of the files division recorded an increase of 7% over the previous year despite lower realization.

Commenting on the occasion, Mr. Gautam Hari Singhania, Chairman and Managing Director, said: “Despite a stagnant domestic market and fierce competition in the overseas market, the Board considers the all round performance of the Company during the year under review satisfactory”.