Raymond (RAYMOND) Q4 03/04 earnings summary

Executive summary

• FY04 gross turnover rose 7.34% to Rs. 1,091.53 crore; PBT before exceptional items increased 39.59% to Rs. 183.13 crore and net profit rose 46.48% to Rs. 132.29 crore.

• Performance remained satisfactory despite higher input costs, stagnant domestic demand and intense international competition.

Financial highlights

• Sales, services and export incentives were Rs. 1,023.94 crore; other income was Rs. 144.60 crore, bringing total income to Rs. 1,168.53 crore.

• PBT was Rs. 186.58 crore, including Rs. 3.46 crore of exceptional items; profit after tax was Rs. 131.84 crore before prior-period adjustments.

• Exports across divisions increased 18.75% to Rs. 228.62 crore.

Outlook and guidance

• Textile exports of converted garments are positioned to benefit from expected quota removal on Jan. 1, 2005; a Bangalore suits-and-trousers facility is being set up through a subsidiary.

• Denim’s 20 million-metre capacity expansion became fully operational in Q4; the production impact is expected in FY05.

• Textile export volumes were expected to grow, while stronger rupee and price competition were expected to pressure export realisations.