Raymond (RAYMOND) Q4 00/01 earnings summary

Executive summary

• 75th-anniversary year marked by Steel and Cement divestments and the merger of the Denim subsidiary; strategy refocused on textiles, Files & Tools and readymades.

• Divestments strengthened finances, but lower textile sales and competition reduced operating profit; reported net profit was boosted by exceptional gains, mainly from the Cement sale.

Financial highlights

• Gross turnover ₹1,477.29cr, down 11.21% YoY; operating profit ₹25.24cr, down 60.88% YoY.

• Profit before exceptional items ₹25.24cr; exceptional net gain ₹339.17cr; profit after tax ₹333.41cr versus ₹32.62cr in FY00.

• Exceptional items included Cement-sale gain ₹626.75cr, Steel-sale loss ₹171.47cr and loss of ₹98.03cr on sale of Reliance Industries debentures.

• Exports across divisions reached ₹221.23cr versus ₹216.08cr; value-added exports rose 13% YoY.

Outlook and guidance

• Textiles expected to sustain growth on manufacturing and marketing strengths; management priorities included customer satisfaction, brand leadership and cost control.

• Denim expected to improve with stronger international demand and added capacity from balancing equipment.

• Textile modernisation plans included new looms, dyeing equipment and computer-controlled colour and chemical dispensing, targeting higher productivity and quality.