Raymond witnesses recovery in consumer demand

Raymond Limited announced its unaudited financial results for the quarter ended September 30, 2020.

Performance highlights

• Progressive recovery witnessed on a month-on-month basis in 2QFY21. While July and August were impacted by local lockdowns,
• September witnessed the recovery of secondary sales leading to improvement  in primary sales

Retail Operations:

• Across our retail network, we are adhering to all COVID-19 related guidelines for employees and customers
• Currently, consumer demand back to ~70 per cent of PY level for TRS while EBO sales back to ~50 per cent of PY level
• Witnessing higher average ticket sizes and conversions as compared to the previous year
• Week-on-week improvement in secondary sales across channels continue

Continued focus on cost rationalisation:

• 2QFY21 operating cost stood at Rs 304 crore, lower by 48 per cent YoY basis

With focused working capital management and cost rationalization, the debt level maintained

• Net debt at Rs. 1,817 crore in September 2020 v/s Rs 1,827 crore in June 2020 and 1,859 crore in March 2020

Liquidity maintained similar to June 2020 and March 2020 levels:

• Cash and cash equivalents at Rs 592 crore in September 2020 v/s Rs 596 crore in Jun-20 and Rs 571 crore on March 2020
• Cash flow positive in 1HFY21: Cash flow from operations positive at Rs 138 crore and free cash flow positive at Rs 32 crore

Commenting on the quarter performance, Gautam Hari Singhania, Chairman & Managing Director, Raymond, said, “With consumer sentiments getting better on a sustained weekly basis, there is a rebound in consumer demand which is evident by increased footfalls in our retail stores. Our focused approach on cost optimization and operational efficiencies has helped us navigate through tough times and maintain both our liquidity and net debt levels. Our other businesses such as engineering, FMCG, and real estate are also getting back on track and showing positive signs of revival. As we move in the second half of the current financial year, I am hopeful that the economy will improve with tailwinds giving businesses the impetus for recovery.”