Indian textiles maker Raymond reported on Friday a multifold jump in first-quarter profit, helped by an exceptional gain from the sale of its consumer business.
Raymond’s consolidated profit was Rs 1,065 crore for the three months ended 30 June, compared with Rs 80.9 crore a year earlier.
In April, Raymond agreed to sell its consumer business Raymond Consumer Care including brands such as Park Avenue deodorant and Kamasutra condoms to Godrej Consumer Products for USD 345 million in a bid to turn debt-free.
The latest quarter included a gain of Rs 983 crore in the sale.
The deal, completed in May, left Raymond with real estate, engineering and denim production businesses.
Profit barring the gain, exceptional items, and taxes declined over 4 per cent to Rs 112 crore, the company said.
Revenue grew 2.5 per cent to 1,771 crore, while expenses increased nearly 5 per cent due to higher raw material costs.
Analysts expect Indian consumer goods makers to post margin benefits in the next few quarters, with prices of commodities such as packing materials easing.
“Going forward, we are optimistic as festive and wedding season will set in during the second half of the year giving an impetus to the consumer demand across the country,” Chairman and Managing Director Gautam Hari Singhania said in a statement.
Shares of Raymond rose as much as 2.5 per cent after reporting results.
