Leading textile conglomerate Raymond witnessed a M-o-M recovery in sales basis in the second quarter of FY21. Though the company was impacted by local lockdowns in July and August, consumer demand returned to 70 per cent of PY level for The Raymond Shop (TRS), while Exclusive Brand Outlet (EBO) sales are back to 50 per cent of PY level.
Currently Raymond is also witnessing higher average ticket sizes and conversions as compared to previous year. There is also week-on-week improvement in secondary sales across channels. For the second quarter, its operating cost declined by 48 per cent on Y-o-Y basis to Rs. 304 crore, while its debt level stabilized due to a focused working capital management and cost rationalization.
The company is also witnessing 85-90 per cent recovery levels in its TRS network in Tier IV-VI markets largely driven by reverse migration, good harvest and lower COVID-19 impact. Its garmenting segment recovered to 80 per cent levels in Q2 driven by exports to US & Europe markets and additional sale of PPE products.
EBITDA margins rose by 10.1 per cent versus 5.3 per cent in PY led by better product mix and cost optimization. However, the performance of its high value cotton shirting segment was impacted due to weak domestic demand.