Raymond posts Rs 81.13-crore net profit
By Our Corporate Bureau | 26 Apr 2002
The net profit was at Rs 81.13 crore compared to Rs 332.22 crore in 2000-01, which included an exceptional income on account of the net gain on the sale of steel and cement divisions and other adjustments amounting to Rs 339.17 crore. The gross turnover was lower at Rs 980.74 crore compared to Rs 1477.29 crore the previous year, which included the turnover of both steel and cement divisions for a part of the year. The board recommended a dividend of 45 per cent (30 per cent) on equity shares. An amount of Rs 0.80 crore (Rs 2.35 crore) was transferred to the debenture redemption reserve and Rs 40.17 crore (Rs.250.27 crore) to the general reserves.
The results are satisfactory if one looks at the global economic slowdown, which was accentuated by the terror attacks and the Gujarat incidents. The company hence could not achieve the targeted growth rate, both in domestic and export markets, though domestic sales were 5 per cent higher. The files division fared well despite general recessionary conditions both in India and in export markets.
The denim market improved significantly with rise in demand in both domestic and international markets. The denim division showed a growth of 15.86 per cent in sales. Expansion of capacity in the denim division from 11 million metres to 16.5 million metres is progressing well and will be on stream by end June 2002.
Commenting on the performance, Raymond CMD Gautam Hari Singhania said: "The year in retrospect was an extremely difficult year, particularly for the textile industry. Despite difficult market conditions, we could still achieve a marginal growth in the textile operation which augurs well for the future."
The companys earning per share for the year is Rs 14.36. The Raymond group, a Rs 1,400-crore-plus conglomerate, is focusing on its core business of textiles and engineering files and tools.
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