Bengaluru: India’s Raymond Ltd on Tuesday reported a nearly 6% rise in quarterly core profit on the back of higher sales in its key textiles and apparel businesses.
The textile maker reported consolidated earnings before interest, taxes, depreciation and amortisation of 3.79 billion rupees ($46.34 million) for the three months to March 31, up from 3.58 billion rupees a year before.
However, the company’s net profit was down over 26% at 1.94 billion rupees during the period, as a larger tax deferment had propped up profitability in the quarter ended March 2022.
India’s retail inflation eased towards the end of the quarter and is likely to drop further in the current fiscal year. Easing inflation and rising disposable incomes are expected to drive consumer spending, fuelling a further recovery in demand.
The Mumbai-based firm, one of India’s largest suit and shirt makers, has benefited from a rise in demand for textiles as Indians shop clothes for weddings and step out more often following successive years of COVID-19 curbs.
Quarterly revenue rose about 10% to 21.50 billion rupees, with textile sales slightly up. Meanwhile, the apparel and garment segments posted an 18.9% and 43.6% jump in sales, respectively.
Meanwhile, the company last month said it would de-merge into two separate listed entities – Raymond and Raymond Consumer Care – to turn net debt free and unlock higher value.
While Raymond would focus only on real estate, engineering and denim production, Raymond Consumer Care would manage its flagship lifestyle business that houses Raymond brand of suits and Parx brand of casual wear.
Shares of Raymond fell as much as 1.6% after reporting results but reversed course to close 0.9% higher.