Raymond's Q1 net loss narrows to Rs 24 cr

MUMBAI: Textile major Raymond Ltd's net loss for the first quarter ended June 30, narrowed down by 25 per cent to Rs 24 crore from Rs 32 crore in the year-ago period.

However, net sales rose marginally to Rs 240 crore during the April-June quarter as against Rs 234 crore in the same period previous fiscal.

"Consolidation on the cost front, capitalising on the brand-strengths and rapid expansion of our retail footprint in smaller cities contributed to the growth this quarter," Raymond MD Gautam Singhania said in a statement here today.

"It (the growth) was also backed by an improvement in consumer sentiment post-slowdown. We remain very bullish on the domestic consumption story and will continue to expand into smaller towns and cities through the year."

The losses narrowed due to drop in depreciation and other manufacturing costs. However, the advertisement spend went up to Rs 22 crore as against Rs 17 crore last fiscal.

Textile business posted a growth of 29 per cent at Rs 238 crore on the back of higher volumes and improved realisations consequent to the buoyancy in the Indian market.

The Files and Tools division was transferred to J K Files (India) Ltd, a wholly-owned subsidiary, with effect from October 1, 2009, and hence the stand-alone results are not comparable.

The branded apparel business witnessed a 20 per cent jump in sales to Rs 149 crore. Raymond's retail business grew 13 per cent quarter-on-quarter.