Raymond has announced moderate profits for the first quarter
ended June 30, 2004. The profit before tax (PBT) for the
first quarter was Rs5.14 crore against Rs26.42 crore for
the same quarter of the previous year. The net profit
after tax (PAT) for the first quarter was at Rs3.14 crore
(Rs20.92 crore) after providing for taxes worth Rs2 crore
(Rs5.50 crore). The gross sales were higher at Rs199.65
crore (Rs185.50 crore) despite the continued recession
in the market.
reduction of profit has been impacted due to the depreciating
rupee resulting in a loss of foreign exchange worth Rs9.82
crore (gain of Rs3.52 crore), higher interest charges
of Rs4.88 crore (net interest income of Rs2.68 crore)
and higher raw material costs. However, the company is
confident of achieving planned performance for the year
company''s textile division maintained revenue in value
at Rs107.77 crore (Rs107.53 crore) and in volumes at 38.7
lakh metres (40.3 lakh metres), despite a marginal drop
in domestic demand. The profitability of the division
has been affected by an increase in the cost of raw material.
Sales of the division, which contribute substantially
to the company''s total sales and profitability, are seasonal
and the bulk of dispatches of high value fabric take place
in the latter part of the year.
denim division has recorded a marginal increase in revenue
in value at Rs47.46 crore (Rs40.28 crore) and in volumes
at 43.4 lakh metres (39.6 lakh metres). The performance
of the division was affected due to a steep increase in
files division has recorded sales of Rs33.13 crore (Rs26.34
crore), but the performance of the division was adversely
affected by a steep increase in the cost of steel, its
main raw material.
board has approved a proposal to set-up an additional
trouser line at the existing manufacturing facility at
Bangalore. The line will be from its wholly owned subsidiary
Silver Spark Apparel, with a capacity of 1,000 trousers
per day and will commence operations from November 2004.
board has also approved a proposal to set-up a new facility
in Bangalore for the manufacture of formal shirts, with
a capacity of 3,000
shirts per day, at a total project cost of Rs13.57 crore.
The project will be implemented through a new company
to be formed, and will commence operations from March