Raymond (RAYMOND) Q4 01/02 earnings summary

Executive summary

• FY02 gross turnover fell 33.6% to Rs.980.74 crore; comparison is distorted by prior-year Cement and Steel sales before their divestment. PBT before exceptional items rose 361.1% to Rs.112.76 crore.

• Net profit after prior-year adjustments and taxes was Rs.81.13 crore; difficult domestic and overseas trading conditions were partly offset by cost reduction, efficiency and productivity initiatives.

Financial highlights

• Sales, services and export incentives were Rs.975.12 crore versus Rs.1,457.06 crore; total income was Rs.1,032.08 crore versus Rs.1,472.79 crore.

• Profit before tax was Rs.110.61 crore versus Rs.364.41 crore; FY01 included Rs.339.17 crore of pre-tax exceptional gains, while FY02 exceptional items were a Rs.2.15 crore loss.

• Reported net profit was Rs.83.64 crore; prior-period adjustments were a net Rs.2.51 crore debit and excess tax provision written back was Rs.6.98 crore.

• Consolidated revenue including other income and stock increase was Rs.1,218.17 crore; consolidated PAT was Rs.76.03 crore and EPS Rs.13.12.

Outlook and guidance

• Textile outlook was cautiously optimistic, with a pickup in sales expected in FY03 and exports targeted to recover to FY01 levels as overseas demand improved.

• Wool and man-made fibre prices had risen; hedging covered FY02 requirements, while raw-material price stabilization was expected by mid-FY03.

• Denim demand was expected to remain buoyant; capacity was being expanded by 5 million metres, with completion expected in Q1 FY03.