Raymond hits 52-week high, stock rises over 5% on two-fold jump in net profit

Shares of fabric manufacturer and fashion retailer Raymond rallied 5.6% and hit a 52-week high of Rs 1,329 on Friday as the company reported over a two-fold jump in its consolidated net profit to Rs 161.95 crore for Q2FY23 on improved growth across its business segments. The company had posted a net profit of Rs 56.15 crore during Q2FY22.

Raymond's revenue from operations rose 39.7% to Rs 2,168.24 crore from Rs 1,551.32 crore in the corresponding quarter of the previous financial year.

Its total expenses increased 31.27% to Rs 1,954.18 crore in the September quarter of FY23 against Rs 1,488.64 crore a year back.

“Raymond continues to deliver high operating performance along with profitable growth for the 4th consecutive quarter leveraging optimism in the market and improved consumer demand. The focused approach has driven growth over pre-Covid levels and cost consciousness has led to deliver yet another record profitable quarter,” the company said in a release.

“The net debt has reduced to Rs 1,286 crore as on 30th September 2022 as compared to Rs 1,310 crore on 30th June 2022 through free-cash-flow generation driven by strong profitability. However, there was an increase in working capital deployment primarily in production and sales to meet strong festive and winter wedding demand in H2,” the company said.

At 10.15 am, the scrip was trading 3.5% higher at Rs 1,302 over its last day’s closing price of Rs 1,257.85 apiece. The stock has surged nearly 60% in the last six months while it has risen about 110% year-to-date.