Raymond's Q2 FY 11 PAT zooms 427 pc at Rs 39-cr

MUMBAI: Textile major Raymond today reported a 427 per cent increase in its net profit at Rs 39-crore in the second quarter as against Rs seven crore in the year ago period. The robust profit growth was attributed to various structural initiatives undertaken, including restructuring its loss-making denim business, closure of unviable operations, and rapid expansion of its retail footprint in smaller towns and cities.

Sales from the textiles segment grew 14 per cent at Rs 393-crore in Q2 FY 11 on the back of higher volumes and improved realisations, the company said in a release. It has transferred its files and tools division to J K Files (India) Ltd, a wholly-owned subsidiary last October and the stand-alone results are not comparable on a like-to-like basis, it said.

Raymond with 665 retail stores covering over 1.4-million square feet of retail space, reported a 10 per cent growth in like-to-like store sales. Besides, it has 39 stores in the Middle-East and SAARC. "The strong performance this quarter is the result of various structural initiatives we undertook, including restructuring our loss-making denim business, closure of unviable operations, and rapid expansion of our retail footprint in smaller towns and cities.

We remain bullish on the domestic consumption story and remain confident of our capabilities to focus on opportunities and grow rapidly," Raymond's Chairman and Managing Director, Gautam Singhania, said.