Raymond (RAYMOND) Q4 02/03 earnings summary

Executive summary

• Standalone gross turnover reached Rs 1,016.87 crore vs Rs 980.74 crore; profit before tax and exceptional items rose to Rs 131.19 crore from Rs 112.76 crore.

• Net profit after prior-year adjustments and taxes was Rs 90.25 crore vs Rs 81.13 crore; the board recommended a 45% equity dividend.

Financial highlights

• Standalone sales, services and export incentives were Rs 1,020.59 crore vs Rs 975.12 crore; profit after tax before prior-period adjustments was Rs 91.43 crore.

• Consolidated sales, services and export incentives were Rs 1,241.62 crore vs Rs 1,112.93 crore; profit after tax was Rs 88.22 crore vs Rs 76.03 crore.

• Consolidated profit before tax and exceptional items was Rs 149.67 crore; exceptional items reduced this by Rs 15.27 crore.

Outlook and guidance

• Denim expansion doubled capacity from 10 million to 20 million metres; the full benefit of both expansion phases was expected in FY03/04.

• Textile export volumes were expected to grow, though lower DEPB rates could pressure realisations; aggressive retail expansion plans targeted the coming festival season.

• Denim margins were expected to face pressure in FY03/04 as cotton prices remained elevated; cost control, judicious cotton coverage and richer product mix were planned responses.