Raymond Q1 net loss widens to ₹247.60 crore

Raymond Ltd on Monday reported widening of its consolidated net loss to ₹247.60 crore in the first quarter ended June 2020, impacted by COVID-19 and subsequent lockdowns.

The company had a net loss of ₹12.20 crore during the April-June quarter of the previous fiscal.

Its revenue from operations was down 88.63 per cent to ₹163.16 crore during the quarter as against ₹1,435.12 crore in the corresponding period of the previous fiscal.

Raymond’s total expenses were at ₹543.87 crore in Q1/FY 2020-21, down 63.26 per cent from ₹1,480.51 crore a year ago.

“Q1 FY21 performance was impacted due to continuous lockdown amidst Covid pandemic,” said Raymond in a press statement.

According to the company, during lockdown 1.0 and 2.0, its retail stores remained closed and gradually reopened from lockdown 3.0 onwards with easing of restrictions.

Its 95 per cent of store network spread across over 600 towns and cities are operational. Moreover, consumer demand is back to 50 per cent of previous year levels in our The Raymond Shop (TRS) network, it added.

Commenting on the performance, Raymond CMD Gautam Hari Singhania said: “Raymond’s expansive retail network remains key to the business and it is re-assuring to see that over 95 per cent of our retail stores are now operational. While tiding through the tough times, managing effective cash flows through significant cost reduction coupled with maintaining liquidity levels and debt reduction have been the highlights of the quarter.

It’s revenue from Textile was down 97.23 per cent to ₹16.58 crore as against ₹600.34 crore of the corresponding quarter.

While, revenue from shirting was down 96.82 per cent to ₹5.52 crore as against ₹174.09 crore of Q1/FY 2019-20.

“Textile and apparel industry has been impacted due to lockdown and related lower consumer demand, primary sales as well as secondary sales were impacted in Q1,” said Raymond.

Its revenue from Garmenting was down 47.58 per cent to ₹99.73 crore as against ₹190.26 crore.

While Raymond’s revenue from other segment such as tools and hardware was at ₹20.25 crore, ₹21.03 crore from auto components and ₹4.73 crore from real estate and development of property.

With ease in restrictions now, the company is witnessing that consumer sentiment is gradually picking up across the country, Singhania added.

“As we move closer to the festive and wedding season, it is expected that the increased consumer spending will bring in the much needed recovery,” he said.

Shares of Raymond Ltd on Monday settled at ₹277.10 apiece on the BSE, up 2.35 per cent from the previous close.