The share price of Raymond company surged over 5% on May 7, a day after the company's March quarter results were released. Raymond is India's largest integrated worsted suiting maker, offering complete fabric and garment solutions.
Raymond said in a regulatory filing that the company made a net profit of Rs 69.10 crore in the previous fiscal's January-March quarter.
Raymond's stock price was trading at Rs 341, up 4.05% on BSE at 1.07 pm IST. It touched an intraday high of Rs 351 and a low of Rs 336. The scrip opened at Rs 338 against the previous close of Rs 328.
The stock's volume increased by more than 3.25 times, to 79,344 shares, compared to its five-day average of 22,687 shares, a 249.74 percent rise.
Owing to the resurgence of the Covid-19 pandemic and the ensuing imposition of local lockdowns, weekend curfews, store timing limits, and night curfews, our retail store operations have been affected, the company said.
During the pandemic, this is the fourth consecutive quarter of net debt reduction. Based on working capital management and cost rationalization drove a reduction in net debt of Rs. 167 crore in Mar-21 to Rs. 1,416 crore from Rs. 1,583 crore in Dec-20.
Commenting on the quarter performance, Mr. Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said, "We began the new fiscal with a higher number of wedding dates and encouraging consumer footfalls in retail outlets. However, with the second wave of Covid-19 and its intensity, we are witnessing lockdowns across cities thereby impacting sales. We are continuously ramping up our omnichannel capabilities to help serve our consumers across India. With vaccination gaining pace, we expect businesses to regain momentum in due course of time."
Sales in the garment segment reached Rs. 126 crore, owing to a turnaround in the bulk industry and the incremental opening up of global markets. Owing to lower revenue, the EBITDA margin for the quarter was -2.3 percent.