Raymond stocks end 5% down; market capitalisation erodes by Rs 146 crore

MUMBAI: Shares of diversified group Raymond today ended the day with losses of nearly five per cent on muted results, following which the market capitalisation of the company eroded by Rs 146 crore.

Raymond yesterday reported 26.18 per cent decline in consolidated net profit at Rs 68.12 crore for the second quarter ended September 30 due to higher expenses.

Reacting to the numbers, shares of the company opened on a weak note at Rs 478 and fell 5.59 per cent to an intra-day low of Rs 461.10 on the BSE.

At the end of today's trading session, the stock was quoted at Rs 464.85, down 4.83 per cent on the BSE.

Following the decline in the share price, the market capitalisation of the company eroded by Rs 146 crore to Rs 2,853.29 crore.

Marketmen attributed the fall in the counter to weak September quarter earnings.

For the half year period ended September 30, the company posted a net profit of Rs 35.27 crore as against a net profit of Rs 42.60 crore in the corresponding period last year.

Commenting on the results, Raymond CMD Gautam Hari Singhania said: "While the revenue growth was in line with our expectations, however, profitability did not meet our desired targets, particularly in the branded textile segment and engineering businesses."