The company’s board has approved an investment of Rs 300 crore in the ongoing financial year for developing a residential project in 20 acres of land at Thane.
Akash Jain
Raymond has seen a massive rally in last one year. However, we still believe the company is set deliver excellent returns to its shareholders going ahead. We believe, the company is on a right path to tap the huge opportunity in branded apparel segment and has all the ingredients to create wealth for investors provided it performs consistently well. Turnaround of non-core assets would also act as further growth drivers.
The company has valued 125-acre Thane land at Rs 3,125 crore. We expect strong earnings performance during the period FY18-20. We can expect a target of Rs 1400 plus by FY19 end.
As expected, the company has witnessed strong Q4FY18 result. Margins expanded on higher sales of branded apparels and textiles coupled with lower promotional and ad spends, the company said in a media statement.
Consolidated net profit registered robust growth of 61.46 percent on yoy basis to Rs 54.38 crore. For the financial year 2017-18 ended on March 31, Raymond's net profit jumped over three-fold to Rs 141.55 crore as against Rs 30.02 crore in 2016-17.
Raymond Chairman and Managing Director Gautam Hari Singhania said: "The financial year 2017-18 has been one of the milestone years for the Raymond Group. Its total income was up 9.91 percent at Rs 1,655.12 crore during the quarter under review as against Rs 1,505.75 crore in the corresponding period of the previous fiscal.
According to the management, fourth quarter saw a strong recovery from the impact of the demonetisation and the Goods and Services Tax rollout witnessed in the same quarter last year. In addition, textile and branded apparel segments have outperformed. Going forward, launch of Raymond Ethnic and Nextlook will drive growth in the branded segment. The company plans to add 250 stores in FY19.
The company’s board has approved an investment of Rs 300 crore in the ongoing financial year for developing a residential project in 20 acres of land at Thane.
"We have secured a major part of the regulatory approvals that are required and a few are in process,” said the CFO.
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