Raymond (RAYMOND) Q4 05/06 earnings summary

Executive summary

• FY06 net turnover rose 16.17% to Rs.1,324.74 crore; profit before tax, prior-period adjustments and exceptional items increased to Rs.173.65 crore from Rs.116.50 crore.ocument-source]1[/document-source]

• Reported net profit after exceptional items, prior-year adjustments and tax was Rs.121.01 crore versus Rs.83.15 crore; the board recommended a 50% equity dividend, up from 40%.ocument-source]1[/document-source]

• Growth reflected stronger domestic sales across textiles, denim and files, alongside capacity expansion and investments in garmenting and international partnerships.ocument-source]1[/document-source]

Financial highlights

• Standalone sales, services and export incentives were Rs.1,324.74 crore versus Rs.1,143.83 crore; total income was Rs.1,406.37 crore versus Rs.1,226.39 crore.ocument-source]28[/document-source]

• Standalone profit before exceptional items was Rs.173.65 crore; exceptional items were a net charge of Rs.9.95 crore, leaving PBT of Rs.163.70 crore.ocument-source]28[/document-source]

• Standalone PAT was Rs.122.29 crore before prior-period adjustments and earlier-year tax provisions; profit including exceptional items for EPS computation was Rs.121.00 crore.ocument-source]28[/document-source]

• Consolidated revenue was Rs.1,710.64 crore, up from Rs.1,440.09 crore; consolidated profit before exceptional items was Rs.209.30 crore versus Rs.140.83 crore.ocument-source]64[/document-source]

• Consolidated profit including exceptional items for EPS computation was Rs.136.03 crore; consolidated EPS was Rs.22.16 including exceptional items and Rs.22.26 excluding them, net of tax.ocument-source]64[/document-source]

Outlook and guidance

• Textile strategy targets premium global customers through integrated fabric and garment manufacturing, design capabilities and value-added service; significant investment in brands and the marketing network was planned.ocument-source]7[/document-source]

• Vapi textile plant phase one, with 3 million metres of capacity, began production; the next 3-million-metre phase was expected to finish by FY07-end.ocument-source]8[/document-source]

• Proposed UCO denim JV was expected to close in June–July 2006, subject to approvals and definitive agreements; the combined operation was projected to have 80 million metres annual capacity.ocument-source]9[/document-source]

• Files and Tools planned further cost, process and quality improvements; new hand-tool and agricultural-tool products were expected to grow, while the MOB JV plant was expected to start production in May 2006.ocument-source]9[/document-source]

• Apparel outlook was supported by lifestyle-driven ready-to-wear demand; Raymond Apparel planned a premium kidswear launch under the ZAPP brand.ocument-source]2[/document-source]