RAYMOND Announces Quarterly Results (1QFY20); Net Profit Down 506.9%

Mon, 5 Aug

RAYMOND has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

RAYMOND Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	12,507	18,087	14,351	-20.7%	14.7%
Other income	Rs m	385	284	348	22.6%	-9.6%
Turnover	Rs m	12,892	18,371	14,699	-20.0%	14.0%
Expenses	Rs m	11,818	16,418	13,257	-19.3%	12.2%
Gross profit	Rs m	669	1,669	1,093	-34.5%	63.4%
Depreciation	Rs m	466	517	813	57.3%	74.3%
Interest	Rs m	526	494	736	49.1%	40.0%
Profit before tax	Rs m	62	943	-107	-111.4%	-272.2%
Tax	Rs m	33	252	11	-95.5%	-65.9%
Profit after tax	Rs m	29	691	-118	-117.1%	-506.9%
Gross profit margin	%	5.3	9.2	7.6
Effective tax rate	%	53.2	26.7	-10.6
Net profit margin	%	0.2	3.8	-0.8

Year-on-Year Performance:

• The company's operating income during the quarter grew 14.7% on a year-on-year (YoY) basis. The expenses were up by 12.2% YoY during the same period.
• The company's operating profit increased by 63.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 7.6% in 1QFY20 as against 5.3% in 1QFY19.
• Depreciation charges increased by 74.3% and finance costs increased by 40.0% YoY, respectively.
• Other income declined by 9.6% YoY during the quarter.
• Net profit for the quarter declined by 506.9% YoY. Net profit margins during the quarter declined from 0.2% in 1QFY19 to -0.8% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 20.7% on a quarter-on-quarter (QoQ) basis. The expenses were down by 19.3% QoQ during the same period.
• The company's operating profit declined by 34.5% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 7.6% in 1QFY20 as against 9.2% in 4QFY19.
• Net profit for the quarter declined by 117.1% QoQ, while net profit margins declined from 3.8% in 4QFY19 to -0.8% in 1QFY20.

To see how RAYMOND has performed over the last eight quarters,please visit here.

RAYMOND Share Price Performance

Over the last one year,RAYMOND share price has moved down from Rs 804.0 to Rs 620.8, registering a Loss of Rs 183.2 or around 22.8%.

Overall, the S&P BSE SENSEX is down 1.3% over the year.

Current Valuations

At the current price of Rs 620.8, the price to earnings (P/E) ratio of RAYMOND stands at 22.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.0 times.