Raymond sees apparel revenue up 30% in FY11

Raymond Ltd. | Textile - Weaving | Textiles & Apparels | BSE: 500330 | NSE: RAYMOND

18 Feb 2011 Evaluate

Textiles maker and retailer Raymond expects its apparel division revenue to jump 30% in FY11 even as it plans to raise prices by 5-10% next quarter to offset cost push. The company, which sells apparel brands such as Manzoni, Park Avenue, Parx and Color Plus, had revenues of Rs 800 crore from its apparel division in 2009-10.
Apparels division, which contributes roughly a third to Raymond's total revenues, will grow on the back of rising consumer demand, higher prices and store expansion Next year also the company have plans for expansion and growth and value proposition and would be opening more stores and focussing on expanding in class four and five towns. The division, which had sales of Rs 180 crore, grew at 29% in the quarter to December and its earnings before interest, tax, depreciation and amortisation (EBITDA) grew two-fold in the period.

The company expects margins to stay under pressure on soaring cotton prices and it will raise prices by 5-10% in the June quarter to offset cost increases. In India, the world's second biggest producer and exporter of the fibre, prices of the most common Shankar-6 variety hit record high of Rs 60,000 per candy of 356 kg last week. The price has more than doubled in the past year.