• OUTLOOK ARENA
  • VIEWS ON NEWS
  • AUGUST 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  
*(annualised)      

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.

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 (Research Analyst) bearing Registration No. INH000000537 (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, Canada or the European Union countries, 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 (Research Analyst)
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