Textile company Raymond share price rallied as much as 4.5 percent in morning trade on Wednesday after reporting strong set of March quarter earnings on Tuesday.
Profit for the quarter ended March 2018 grew by 61.7 percent to Rs 54.5 crore compared to Rs 33.7 crore in the year-ago period.
Revenue from operations increased 10.6 percent to Rs 1,629.8 crore against Rs 1,473.6 crore in the corresponding period last fiscal.
Branded textile segment sales increased 13 percent led by 8 percent growth in the suiting business and 36 percent in the shirting business driven by wedding season, growth in trade channels &institutional business and recovery in exports, the company said.
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Branded apparel segment sales rose 20 percent led by consumer demand during the wedding season and extended EOSS period, it added.
Raymond has approved development of 20 acres of land for residential purposes. The project is expected to be developed over a period of 5/6 years. The estimated project expenditure in FY19 will be in the range of Rs 300 crore. The company has secured major regulatory approvals and other construction related approvals are in process.
Operational performance was also strong as operating profit or earnings before interest, tax, depreciation and amortisation (EBITDA) in Q4 rose 33.5 percent to Rs 150.6 crore and margin expanded by 160 basis points to 9.2 percent for the quarter ended March 2018.
Meanwhile, the board of directors of the company recommended a dividend of 30 percent on the equity share capital.
At 10:00 hours IST, the stock price was quoting at Rs 1,086.90, up Rs 21.40, or 2.01 percent on the BSE.