Raymond LTD |
Buy at CMP 990 for Target of 1075 to 1190, Time frame - 5 months to 18 Months, SL - 845
Raymond Q2FY18 consolidated net profit rises 60% yoy to Rs.48 crore
. For Q3FY18, Raymond Ltd’s revenue grew by 13.6% yoy to Rs1,484cr.
. Company reported P
rofit
A
fter
T
ax
of Rs31cr vs. Net Loss of Rs15cr yoy
in Q3 FY17
• Its revenue from Textile, Shirting, Apparel and Garmenting segments grew by 13.8%, 13.9%, 7.1% and 26.2% yoy respectively.
• Finance cost grew by 0.9% yoy to Rs46cr.
• Depreciation and amortisation expenses grew by 10.6% yoy to Rs43cr.
• Employee benefit expenses grew by 7.8% yoy to Rs209cr.
• 9MFY18 revenue grew by 9.2% yoy to Rs4,277cr.
• In Q3FY18, the company added 34 new stores (including 17 mini stores) and closed 15 stores.
• Out of total new stores added in Q3FY18, ~70 are franchised.
• Q4FY18 capex guidance is Rs90-100cr, out of which ~Rs20cr, ~Rs5cr and ~Rs20cr are expected to be utilised towards new stores, Amravati facility and Ethiopia facility respectively. Balance will be towards maintenance capex.
• Full capacity utilisation in Amravati and Ethiopia facility can lead to top-line contribution of Rs200-250cr each.
• Management plans to utilise ~75% of its Amravati facility in FY19.
• Each mini store is expected to contribute ~Rs90lakh p.a. to the top-line.
Buy at CMP 990 for Target of 1075 to 1190, Time frame - 5 months to 18 Months, SL - 845
. For Q3FY18, Raymond Ltd’s revenue grew by 13.6% yoy to Rs1,484cr.
. Company reported P
• Its revenue from Textile, Shirting, Apparel and Garmenting segments grew by 13.8%, 13.9%, 7.1% and 26.2% yoy respectively.
• Finance cost grew by 0.9% yoy to Rs46cr.
• Depreciation and amortisation expenses grew by 10.6% yoy to Rs43cr.
• Employee benefit expenses grew by 7.8% yoy to Rs209cr.
• 9MFY18 revenue grew by 9.2% yoy to Rs4,277cr.
rofit
A
fter
T
ax
of Rs31cr vs. Net Loss of Rs15cr yoy
in Q3 FY17
• Its revenue from Textile, Shirting, Apparel and Garmenting segments grew by 13.8%, 13.9%, 7.1% and 26.2% yoy respectively.
• Finance cost grew by 0.9% yoy to Rs46cr.
• Depreciation and amortisation expenses grew by 10.6% yoy to Rs43cr.
• Employee benefit expenses grew by 7.8% yoy to Rs209cr.
• 9MFY18 revenue grew by 9.2% yoy to Rs4,277cr.
.
In Q3FY18, company opened a linen plant with a capacity of 4.8mn meters p.a. in Amravati.• In Q3FY18, the company added 34 new stores (including 17 mini stores) and closed 15 stores.
• Out of total new stores added in Q3FY18, ~70 are franchised.
• Q4FY18 capex guidance is Rs90-100cr, out of which ~Rs20cr, ~Rs5cr and ~Rs20cr are expected to be utilised towards new stores, Amravati facility and Ethiopia facility respectively. Balance will be towards maintenance capex.
• Full capacity utilisation in Amravati and Ethiopia facility can lead to top-line contribution of Rs200-250cr each.
• Management plans to utilise ~75% of its Amravati facility in FY19.
• Each mini store is expected to contribute ~Rs90lakh p.a. to the top-line.
The Amravati plant has been set up with an investment Rs 220 crore and will offer direct employment to 500 persons. (DS)
60 per cent market share in High quality wool suiting in India and ranks amongst the first three fully integrated manufacturers of High quality wool suiting in the world.
- First to introduce Polyester-Wool and Polyester-Wool-Viscose in the India, including USA, Canada, Europe, Japan and the Middle East.
- Export product to over 55 countries with capacity of 38 million meters in wool and wool-blended fabrics
the only company in the world to have a diverse product range of nearly 20,000 design and colours of suiting fabric to suit every age, occasion and style.
Raymond produces high-value pure-wool, wool-blended and premium polyester viscose worsted suiting in addition to half a million blankets and shawls. Our strong in-house skills for research and development have always resulted in path-breaking new products raising the standard of the Indian textile industry.
30,000 retailers and an exclusive chain is present in over 150 cities across India.
On 18th Dec 2017
the company said its subsidiary Raymond Luxury Cotton has commissioned a greenfield linen manufacturing facility in Maharashtra.In phase I of the project, the facility is expected to produce 1,200 tn of linen yarns and 4.8 ml mtr of linen and blended fabrics annually and also expected to generate direct and indirect employment for 800 people.The facility will help the company emerge as a preferred provider of linen in global markets, the company said. This would be Raymond's third unit in central India and the second in the Vidarbha region. The company has a denim plant at Yavatmal and a woollen fabric unit in Chhindwara district, on the Madhya Pradesh-Maharashtra border.
Raymond plans to invest ₹1,400 crore in a phased manner in its greenfield project at Amravati to expand the cotton textile manufacturing footprint. The plant, when completed by this year-end, will employ 8,000 workers and produce linen, cotton shirting, denim and garmenting.
“It is likely to be commissioned by the year-end. Spread across 500 acres, the project is in line with our strategy to expand the cotton textile manufacturing footprint by creating world-class linen, cotton shirting, denim and garmenting at the newly created Textile Park in Amravati,” Gautam Hari Singhania, Chairman and Managing Director, Raymond Group, told BusinessLine.
On the retail side, the company plans to put up 300 Raymond shops and 200 other format shops under Park Avenue and Colour Plus in tier-IV and tier-V cities over the next two years. It currently has 1,100 shops in 450
Maharashtra Chief Minister Devendra Fadnavis inaugurated the first ever greenfield linen manufacturing plant of Raymond on December 17. The textile major has opened the unit under its subsidiary Raymond Luxury Cottons Ltd. in Amaravati district.
Raymond Group Chairman & Managing Director, Gautam Hari Singhania and Union Transport Minister Nitin Gadkari also attended the inauguration of the unit at MIDC’s Nandgaon Peth industrial estate.
The unit, set up at a cost of around Rs. 250 crores, is expected to start its commercial operations by April next year. It will majorly (70 per cent) take care of Raymond’s own consumption while the rest will go to domestic and international markets.
More than 800 people (directly or indirectly) are expected to be employed at the unit which is likely to produce 1,200 tonnes of linen yarns and 4.8 million metres of linen and blended fabrics annually.
The apparel and textile company is planning to make an investment of Rs. 1,400 crores in a phased manner, informed inghania, who added there are plans to double the capacity of the unit in Phase 2.
The company recently announced plans to manufacture from Ethiopia as the country has preferred access to certain developed markets. “We are targeting export revenue of ₹250 crore per annum from Ethiopia and should break even in three years,” he said. Though Raymond will make suits for leading global brands and retailers such as JC Penny, Express, Calvin Klein and UK brand Suitsupply from Ethiopia, it has no plans to launch its own brand in US and Europe.
“It is sexy to say I’m going to sell my Raymond suits in England but it does not make economic sense. We will use our brand strength in India and tap neighbouring markets in West Asia, Nepal, Sri Lanka and Bangladesh,” he said. The company has committed 2.70 lakh manhours to create fashion with Khadi. It recently launched a branded Khadi label — ‘Khadi by Raymond’ — in Mumbai.
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echnical Discourse: Stock is in Uptrend , Buy at CMP : 1923, Target - 2000 to 2205 ,SL- 1750, Time Frame 9 to 24 Months