Raymond Q2 net profit jumps 32 percent to Rs 86 crore
today Oct 25, 2019
Apparel and textile firm Raymond Ltd reported a 32 percent rise in its net profit at Rs 86 crore ($12.2 million) for the second quarter ended September 30 as against Rs 65 crore it had posted in the corresponding quarter last fiscal.
The company’s sales revenue rose two percent to Rs 1,883 crore during the period as against Rs 1,848 crore it posted in July-September period a year ago.
Raymond’s expenses for the quarter grew by 4 percent to Rs 1,841 crore during the quarter as against Rs 1,772 last year.
The company attributed the slow growth to the sluggish market condition and liquidity crunch in the smaller towns across India.
Commenting on the results, Raymond’s managing director and chairman Gautam Hari Singhania in a statement said, “With the consumer sentiment remaining tepid, growth continues to be dampened by subdued consumption leading to sluggish market conditions during the quarter. The overall economy is facing strong headwinds in terms of consumer demand especially in rural areas along with liquidity crunch.”
“While our fundamentals remain strong, our quarterly performance is a reflection of the current market conditions. However, with upcoming festive and wedding season we expect things to improve and we are confident that macroeconomic factors will get better,” Singhania added.
Raymond ended the quarter with a retail store count of 1,501 across all formats and opened 97 percent of stores in the quarter under the franchisee model as part of its new expansion strategy.
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