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Textiles: Growth at 'home'!

May 12, 2006

The domestic textile industry is yet at the inflection point from where it needs to take off and capitalise on the export opportunities in the post quota regime. What however, has caught the 'apparel' players off guard is the fact that while they awaited for the quotas to get lifted, to embark on their capex plans, the cycles (like the denim cycle) have turned and new competitors have emerged. In such a scenario, their counterparts in the 'home textiles' segment seem to be better geared.

Indian textile industry: Porter analysis...

Mar 31, 2006

One of the worst hit sectors during the skyrocketing interest rate scenario in the late 90s and early 2000s.

Indian Rayon: Now, Aditya Birla Nuvo!

Sep 12, 2005

The Aditya Birla Group, a Rs 330-bn conglomerate, involved in businesses ranging from metals, fertilisers, textiles, IT-ITES, finance and life insurance, is merging two of its group companies, Birla Global Finance (BGF) and Indo Gulf Fertilisers (IGF) with Indian Rayon. The consolidated entity will be rechristened Aditya Birla Nuvo and will have Rs 60 bn in consolidated revenues.

Indian Rayon: Consistency, an issue?

May 5, 2005

Indian Rayon is the Aditya Birla Group's most diversified conglomerate, with a turnover in excess of Rs. 17.1 bn. The company has a presence in key business segments, which include viscose filament yarn, carbon black, textiles and garments. The company has also made a foray into insurance, IT services and Business Process Outsourcing (BPO) fields. It has hived off its insulators business into a joint venture with Birla NGK Insulators Pvt Ltd.

Arvind Mills: Well stretched!

Dec 6, 2004

Textiles major, Arvind Mills, posted lackluster results for 2QFY05. Despite the topline registering a growth of 14.5% YoY, the bottomline witnessed a decline of 17% during the quarter. Both operating as well as net profit margins were lower as compared to the same period last year (down 220 and 180 basis points respectively).

Indian Rayon: Realization key concern

Nov 2, 2004

AV Birla Group Company, Indian Rayon, declared lackluster results for 2QFY05. While the topline of the company grew by only 9% YoY, the bottomline of the company declined by 56% on account of contraction of operating margins as well as extraordinary expenses. The operating margin declined by 370 basis points, while net profit margin declined by 8 percentage points.

Raymond: Tough times

Oct 25, 2004

Raymond India, one of the country's leading textile players, has reported subdued numbers for the second quarter ended September 30, 2004. While net sales are higher, owing to higher raw material costs (especially for its files division), operating margins have declined sharply. Lower other income has not helped matters either. We will have to revise our earnings estimates for FY05 downwards post the 1HFY05 results.

Indian Rayon: Is it really undervalued?

Mar 31, 2004

Indian Rayon is a diversified company under the A. V. Birla group. The company has presence in various sectors like viscose filament yarn (VFY), carbon black, garments, textiles, garments, insurance and is also one of the market leaders in same. The company's presence in software (PSI Datasystems) and insurance (Birla Sun Life Insurance) are through its subsidiary holdings. The company hived off its insulator division into a separate joint venture with NGL of Japan.

Textiles: Is MFA a boon or a bane?

Mar 3, 2004

After Multi Fiber Arrangement (MFA) is phased out, the textile industry of developing economies like India will have a reason to be optimistic about the long-term growth opportunity.

Raymond: Rupee benefits

Oct 23, 2003

Raymond, the leading producer of suiting fabrics, has reported subdued performance for the September quarter. Topline has increased by just over 9% mainly due to the increase in denim production capacity. But the bottomline has grown by around 15% mainly due to higher non-core income. Operating profits of the company have gone down by around 13% YoY.

Indian Rayon: Garment pick up

Oct 22, 2003

Indian Rayon has reported a topline growth of 14% YoY for the September quarter, aided mainly by impressive growth in garments, textile and VFY (viscose filament yarn) segments. Also, for the same period, the company has reported a substantial 73% YoY growth in its bottomline, which has been helped by extra ordinary income and a steep fall in interest cost. However, the topline growth for 1HFY04 is not very impressive, affected by the dismal performance of it VFY and textile divisions in 1QFY04.

Indian Rayon: A snapshot

Sep 22, 2003

Indian Rayon, a Rs15 bn diversified conglomerate, is a part of the Aditya Birla Group. The company has presence in various sectors like viscose filament yarn (VFY), carbon black, garments, textiles, garments, insurance and information technology. It is India's second largest producer of VFY and carbon black. The company’s presence in software and insurance are through its holding in subsidiaries.

Raymond: Garments thrust

Jun 19, 2003

The imperative for Raymond to acquire Color Plus in FY03 not only stems from the fact that the core businesses of the company are stagnating, but also due to other reasons. We have compared Raymond's garments division with Raymond Apparel (a subsidiary that sells 'Parx' brands), Color Plus and Indian Rayon.

Indian Rayon: Diversification blues

May 12, 2003

Led by impressive performance of its Viscose Filament Yarn (VFY), textiles and carbon black divisions, Indian Rayon (IRYN) has posted impressive FY03 results. While revenues have increased marginally by 2%, net profit has more than doubled during the year. The rise in sales and net profit has come at a time when the company has divested its insulator business into a separate joint venture and has taken a big hit towards the loss on sale of stake in Mangalore Refinery (MRPL).

Raymond - Headed north?

Apr 25, 2003

It is back to a phase of steady growth for Raymond Limited. The company declared its full year results ended March 2003 yesterday in which it has posted a 8% and 6% rise in revenues and net profit respectively (excluding extraordinary adjustments). Against our consolidated earnings estimate of Rs 823 m, the company's net profit stands at Rs 820 m.

Raymond: Pricing pressure

Feb 18, 2003

It has been a rather lacklustre year for Raymond Limited. While volume growth has been on the impressive side for the first nine months of the current fiscal year, operating margins continue to remain depressed in light of weakness in its core businesses viz. textiles and industrial files. After a sharp spurt in operating efficiency in FY02 thanks to benefits from the divestment of its commodity businesses, margins are reverting back to the mean.

Indian Rayon: Not a P/E story

Oct 24, 2002

Indian Rayon has posted an impressive performance for the second quarter ended September 2002. While revenues have increased by 12%, the core divisions of the company have witnessed sharp recovery in demand thus aiding both volume and value growth during the quarter. But the garment division has been affected by the slowdown in the economy.

Raymond: Subdued performance

Oct 24, 2002

Raymond has posted a subdued performance for the second quarter ended September 2002. While slower revenue growth could be on account of seasonal nature of demand in the sector, margins have taken a severe beating during 2QFY03. But for 1HFY03, revenue growth in on the higher side led by increased contribution from exports.

Raymond: 'ColorPlus' growth

Sep 23, 2002

Last week, Raymond India announced its second acquisition in the garments segment. The company acquired a 75% stake in ColorPlus, the premium branded-garments player in the Indian market. After this acquisition, Raymond is no longer a smaller niche player in this market.

Raymond: The path ahead

Aug 12, 2002

The path to turnaround has been a steady one for Raymond Limited, the textiles and denim major. After having divested some of its non-core businesses, there has been a marked improvement in profitability of the company. The first quarter performance also suggests that Raymond has benefited from consolidating its presence in the textile business.

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