Raymond likely to report Q1 loss at Rs 39cr: Nomura

Raymond will announce its first quarter earnings today. Nomura expects the textile firm to report a loss of Rs 39.02 crore during the quarter as against loss of Rs 35 crore in a year ago period.

Sales may increase to Rs 921.6 crore from Rs 837.7 crore and earnings before interest, tax, depreciation & amortisation (EBITDA) are likely to rise at Rs 32.8 crore from Rs 30.92 crore year-on-year, says the brokerage house.

EBITDA margin is, however, expected to fall 19 bps Y-o-Y to 3.5 percent during April-June quarter.

Q1 highlights

First quarter is seasonally a weak and loss making quarter for Raymond.

Even though secondary sales (consumers like u and me) have picked up, Nomura believes it will take 1-2 quarters for primary sales (retailer/wholesalers) to pick up.

The brokerage house expects around 10 percent growth in the suiting fabric business as the wholesales channel has stabilized versus the negative growth witnessed in the past 2-3 quarters.

"We are also building in an Rs 10 crore of VRS as the company has closed the Colorplus plant in Chennai," Nomura report said.