Raymond observes recovery in consumer demand driven by onset of festive & wedding season

Raymond Limited declared its results for the quarter ended September 30, 2020, on Tuesday after the market hours.

Its consolidated revenue for the quarter Q2FY21 came in at Rs 674.21 crore as against Rs 1,883.17 crore in the corresponding quarter last year, registering a 64.2 per cent YoY decline. However, it spiked 313 per cent on a QoQ basis.

The operating loss for the quarter stood at Rs 109.94 crore as against the operating profit of Rs 207.03 crore in the corresponding quarter last year.

The net loss for the quarter came in at Rs 136.59 crore as against a net profit of Rs 86.24 crore in the corresponding quarter last year.

The company’s branded textile & branded apparel segment witnessed good traction in September, owing to the wedding and festive season. Currently, the company is witnessing 85 per cent-90 per cent recovery levels in The Raymond Shop (TRS) network in tier IV-VI markets, mainly driven by reverse migration, good harvest & lower COVID-19 impact.

The company’s garment segment recovered to approximately 80 per cent level in Q2FY21, driven by exports to US & Europe markets and additionally, due to the sale of PPE products. EBITDA margins stood higher at 10.1 per cent as against 5.3 per cent in the previous year, led by better product mix and cost optimisation.

The high-value cotton shirting segment's performance got impacted mainly due to the weak domestic demand. Further, the tools & hardware segment rolled back to its previous year levels, led by growth in the domestic markets. EBITDA margins improved to 15.2 per cent as against 13.8 per cent in the previous year, which was mainly led by cost optimisation.