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Apr-Jun 2013 Earnings Preview
Raymond
Rating
Accumulate
Price (Rs) 237
Target Price (Rs) 316
M/Cap (Rs bn) 14.6
Shares o/s (m) 61.4
Key Figures (Rs m)
Y/e March FY13 FY14E FY15E
Net Sales 40,692 45,073 50,757
EBITDA 3,714 4,620 5,776
Margin (%) 9.1 10.2 11.4
PAT 577 963 1,615
EPS (Rs) 9.4 15.7 26.3
Growth (%) (63.0) 66.9 67.6
RoE (%) 4.2 6.8 10.6
PE (x) 25.3 15.1 9.0
P / BV (x) 1.1 1.0 0.9
EV / E (x) 8.7 6.9 5.4
We expect a seasonally weak quarter for the company. On the primary sales front,
the situation has been status-quo, with sales remaining under pressure. However, a
pick-up in secondary sales for textile as well as branded apparel segment has been
quite good which bodes well for the quarters to come. For the textile business, on
the wholesale side, the de-growth, which has been happening for a while, has gotten
arrested, while inventory at the channel level is getting cleared as sales through ‘The
Raymond Shop’ are doing well. Besides, the company has also taken a small pricehike
in the month of June.
Quarterly Table (Rs m)
Y/e March
Q1
FY14E
Q1
FY13
YoY gr.
(%)
Q4
FY13
12M
FY14E
12M
FY13
YoY gr.
(%)
Net Sales 8,925 8,377 6.5 10,814 45,073 40,692 10.8
EBITDA 510 309 64.9 980 4,620 3,714 24.4
Margin (%) 5.7 3.7 202 bps 9.1 10.2 9.1 112 bps
Reported PAT (125) (350) (64.3) 6 963 577 66.9
PAT (Excl. Ex Items) (125) (221) (43.4) (52) 963 577 66.9
Operating Metrics
Wors ted Textile 3,820 3,660 4.4 5,550 23,046 20,270 13.7
Branded Garments 1,850 1,710 8.2 1,790 8,622 7,630 13.0
New Store Addition 9.0 14.0 (28.6) 8.0 75.0 69.0 7.0
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