Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Raymond's operating profits nose-dives - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Aug 1, 2000

    Raymond's operating profits nose-dives

    Raymond Limited has posted a marginal 1.2% rise in sales from Rs 2,286 m in 1QFY00 to Rs 2,416 m in 1QFY01. However, the both the margins and profit at the operating level have nose-dived thus cramping the bottomline. This is due to the increase in the manufacturing costs and a sharp rise in the excise duty from Rs 49 m in 1QFY00 to Rs 197 m in 1QFY01. However since the last year's figures are not comparable as the company has divested its cement division to Lafarge India for a consideration of Rs7,850 m.

    (Rs m) 1QFY00 1QFY01 Change
    Sales 2,386 2,416 1.2%
    Other Income 20.4 26.5 29.9%
    Expenditure 2,085 2,304 10.5%
    Operating Profit (EBDIT) 301 112 -62.8%
    Operating Profit Margin (%) 12.6% 4.6%  
    Interest 290 253 -12.7%
    Depreciation 246 242 -1.4%
    Profit before Tax -214 -357 66.8%
    Other Adjustments - -  
    Tax - -  
    Profit after Tax/(Loss) (214) (357)  
    Net profit margin (%) -9.0% -14.8%  
    No. of Shares (eoy) (m) 75.1 75.1  
    Diluted number of shares 75.1 75.1  
    Diluted Earnings per share* -11.4 -19.0  

    The notable fall in interest outflow is understandable as the company would have used its sales proceeds to payout the high cost debt. Interest for the full year is also expected to be lower and the company is expected is post better operating margins as the benefit of divestment should improve its operating margins (the per unit consumption cost of power for the cement plant is the highest at Rs 4.83). This along with expected pick up sales of the textile division in the later half of the financial year should help the company in posting better results.



    Equitymaster requests your view! Post a comment on "Raymond's operating profits nose-dives". Click here!


    More Views on News

    Discover the Secrets of Hidden Smallcaps From These AGMs (The 5 Minute Wrapup)

    May 26, 2017

    Don't be surprised to come across some Super Investors there!

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 10:44 AM


    • Track your investment in RAYMOND with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks


    Detailed Quarterly Results With Charts