Ltd has announced a significant improvement in its operating
results for the first quarter ended 30 June 2002.
profit before tax for the first quarter was Rs 6.23 crore
against a loss of Rs 3.14 crore during the same quarter
of the previous year. The net sales were higher by 26
per cent at Rs 166.70 crore (Rs 132.14 crore) despite
continued recession in the market.
and managing director Gautam Hari Singhania says: Despite
difficult market conditions, we have been able to achieve
good results in the first quarter. Thrust on improving
market penetration and cost-cutting is continuing and
will yield favourable results in years to come.
The revenue of
the textile division registered an impressive growth of
46 per cent in value at Rs 108.99 crore (Rs 74.51 crore)
and 39 per cent in volume at 37.62 lakh metres (27.05
lakh metres). Export sales were higher by 75 per cent
in volume at 7.7 lakh metres (4.4 lakh metres) and in
value was higher by 64 per cent at Rs 20.3 crore (Rs 12.4
The sales of the
textile division, which contributes substantially to the
companys total sales and profitability, are of seasonal
nature and the bulk of the despatches of high-value fabric
take place during later part of the year.
The denim division
also recorded a growth of 12 per cent in its revenues
at Rs 27.54 crore (Rs 24.53 crore) and 16 per cent in
volume at 25 lakh metres (21.6 lakh metres). The division
is in the process of expanding its capacity from 10 million
metres to approximately 20 million metres in two phases.
Trial runs are on for the first phase of 5 million metres.
The second phase of another 5 million metres is likely
to be commissioned by March 2003.
The files division
recorded sales of Rs 30.16 crore marginally lower than
that of the previous year. During the quarter, Hindustan
Files Ltd, a wholly owned subsidiary of the company, acquired
a file-manufacturing unit in Kolkata, which would provide
greater synergy to the files business.
net profit after tax was Rs 4.31 crore after providing
for tax Rs 1.92 crore against a loss Rs 4.64 crore for
the same quarter of the previous year. The Raymond group
is a Rs 1,400-crore-plus conglomerate. The group is focusing
on its core business of textiles and engineering files