The share price of Raymond has increased by 112 per cent over the past eight months on BSE to Rs 191 as on January 29, 2004. On December 30, 2003 the stock had reached its 52-week high of Rs 245. The company has been banking on core competence by divesting unrelated businesses like steel, cement and synthetics, contributing 40 per cent to the turnover. It has been concentrating on the core areas of textiles and garments. In the process, equity base has been restructured and debts reduced substantially.
The company has posted good performance over the quarter to December 2003. It reported a 60 per cent y-o-y rise in net profit to Rs 30.55 crore, while net sales for the quarter increased marginally to Rs 277.44 crore (Rs 275.38 crore). Revenue from the textiles division was slightly lower at Rs 192.34 crore as compared to Rs 200.35 crore, whereas sales volumes were lower at 5.5 million metres (5.63 million metres). But despite a steep rise in the prices of wool and polyester, the textile division achieved a higher profit of Rs 28.3 crore (Rs 22.51 crore). This has been attributed to better cost management.
The denim division revenues were up by 33.13 per cent to Rs 51.31 crore and the files & tools division (an unrelated area) witnessed a fall in revenue to Rs 37.01 crore (Rs 38.12 crore). The company reported lower profits in this division due to rise in the steel prices after July 2003.
In spite of the core competence policy, chairman and managing director Gautam Hari Singhania finds acquisition of engineering files unit of HGI Industries by JK Files & Tools, to have immensely benefited Raymond. With that acquisition the company claims to be the world’s largest with a 90 per cent market share in India and 27 per cent, globally.
Another popular identity of Raymond is the Kamasutra brand of condoms, manufactured by JK Ansell, a 50:50 JV between Raymond and Ansell International, Australia. The company also manufacturers surgical gloves. Another group company, JK Helene Curtis, operates in the business of grooming. On its home turf, Raymond is among the top three manufacturers of worsted suitings in the world. It has recently introduced Super 200, a premium range of fabric, while Park Avenue is claimed to be the largest selling office and occasion wear brand in India. Raymond has made its mark with various brands like Parx