The Hindu Business Line : Raymond Q1 net jumps to Rs 19 cr

SUBSTANTIAL growth in worsted textile, denim, and files divisions resulted in more than 500 per cent growth in net profit (including fringe benefit tax) for Raymond in the quarter ended June 30. The net profit stood at Rs 19 crore against Rs 3 crore in the corresponding previous period.

Net sales rose to Rs 245.49 crore (Rs 187.46 crore).

The company wrote off Rs 4 crore as VRS payments to workers made during the quarter under review.

Raymond will contribute Rs 9.69 crore towards its 50 per cent share of the equity capital of Raymond Fedora Private Ltd, the joint venture company set up with Lanificio Fedora SPA of Italy.

The unit manufactures, sells, and distributes carded woollen fabric, including shawls and blankets.

As part of the agreement, Raymond will divest its carded woollen unit at Jalgaon to the joint venture company.

In its joint venture with MOB Outillage SA (MOB) of France for relocating the files and rasps manufacturing capacity of MOB to Chiplun, Maharashtra Raymond will contribute Rs 7.83 crore towards its 90 per cent share of the equity capital of JK Talabot Ltd, the joint venture company.

An investment of Rs 31 crore in the share capital of Scissors Engineering Products Ltd has been made to acquire controlling interest in Ring Plus Aqua Ltd, which makes starter ring gears and integral shaft bearings at Sinnar, near Nashik.

Mr Gautam Hari Singhania, Chairman and Managing Director, said: "The outlook for all the company's businesses continues to be buoyant as the economy enters a new growth phase."

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