Raymond, the India’s biggest woollen fabrics maker, has reported consolidated net loss of Rs 7 crore during the first quarter ended June 30, 2017, as high cost cotton inventory & deep discounting during end of season sale (EOSS) impacted margins.
“The company had registered consolidated net loss of Rs 17 crore in the April-June quarter of the previous fiscal, Raymond said in a filing to the Bombay Stock Exchange.
The consolidated net revenue of the company rose by 14 per cent to Rs 1,240 crore in Q1 FY18 from Rs 1,089 crore in Q1 FY17. The net sales grew 13 per cent Y-o-Y to Rs 1,197 crore during the quarter, led by the wedding season and early onset of EOSS period due to pre-GST clearance.
During the quarter under review, the operating profit of the company improved by 30 per cent to Rs 81 crore versus Rs 63 crore in the year ago period, led by strong growth across all the brands.
Meanwhile, shares of the company were trading at Rs 805.45 apiece, down 0.27 per cent from the previous close on BSE at 13:15 hours.
The upcoming festive season, beginning October 1 is likely to register record-breaking sales, revenues, and highest ever purchase rate per minute for e-commerce giants as most people deferred their purchasing plans during the fortnight of pitru paksha and are now ready to loosen purse strings, revealed an ASSOCHAM survey-cum-analysis.
The ASSOCHAM had carried out the survey during the course of past fortnight across 10 prominent cities of – Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Indore, Jaipur, Kolkata, Lucknow and Mumbai to ascertain their shopping plans for the upcoming festive season.
“About 60 per cent of the total respondents said they are ready with their shopping lists and would prefer online shopping over standing long hours in store aisles, while most of the remaining opted for shopping at physical brick and mortar outlets,” highlighted the survey conducted by the ASSOCHAM Social Development Foundation.
Majority of respondents also said they are planning to splurge on lucrative deals and discounts offered by e-tailers on everything from apparels, appliances, cosmetics, jewellery, perfumes, shoes, electronic items like – mobiles, laptop, television, portable media players and others.
Ease of shopping, various delivery options, diverse payment modes, better offers and other such factors are key reasons highlighted by many respondents to shop online in the festive season starting with ‘Navratri’ in October followed by a string of festivals including Diwali and the festivities do not stop until new year.
“This is expected to be the busiest festive season for e-commerce companies as Indian consumers are likely to spend up to Rs 25,000 crore and more as against over Rs 20,000 crore spent in festive season last year thereby registering about 25 per cent growth,” said D.S. Rawat, secretary general of ASSOCHAM while releasing the findings of the chamber’s survey-cum-analysis.
“Most of the e-tailers have already jumped on the bandwagon for running promotional offers like deep discounts, exclusive merchandise, cash-back schemes, and other such deals to cash in on festive season frenzy and have set off marketing campaigns to rake in maximum profits,” said Rawat.
As part of its analysis, ASSOCHAM had also sought opinions of various experts in the field of advanced research, analytics and digital intelligence services specialising in communications insights and community trends.
Many of these suggested various things like – the e-tailers must learn from the past and gear up to counter various challenges related to logistics, influx of visitors and avoid losing customers due to technical issues by taking all precautionary measures beforehand like investing in a larger server or cloud hosting service.
Besides easier website navigation together with higher levels of service and festive product categories and a responsive website will entice customers and is a great way to differentiate from competitors that may launch seasonal marketing campaigns and offer similar discounts.
According to global financial services major HSBC, the inflation based on Consumer Price Index is expected to cross the 6 per cent year-on-year mark over the next two months, and would ease to 5 per cent from September onwards.
Commenting on the issue, a HSBC Official told the media, “We expect headline CPI inflation to cross the 6 per cent y-o-y mark over the next two months, thanks to a low base from last year. However, inflation is likely to take a turn towards RBI’s target of 5 per cent from September onwards as food prices abate (if rains pick up) and the base normalizes.”
“The rest of July is likely to be action-packed, with a slew of events and data (announcement of the new RBI governor, Parliament session, rains) that will impact the economy for a long time to come,” he added.
The company will operate retail store in India for the sale of clothing, artificial jewellery, accessories and related merchandise under the Forever 21 brand and also through e-commerce channels on a going concern basis, it said in a filing to the Bombay Stock Exchange.
On completion of said transaction the Forever 21 undertaking will form part of the Madura Fashion & Lifestyle division of the company.
Meanwhile, shares of the company closed trading at Rs 145.45 apiece, up 1.29 per cent from the previous close on BSE.
In a filing to the Bombay Stock Exchange, the company informed, “It has opened two new stores at Udhampur and Agra respectively in the states of Jammu & Kashmir and Uttar Pradesh.”
The new store in Udhampur is spread in an area of 10,600 sq. ft. and is the company’s 2nd store in the state of Jammu & Kashmir, it said.
Further, the store in Agra is spread in an area of 11,300 sq. ft. and is the company’s 55th store in the state of Uttar Pradesh, it said.
With this, the company has increased its tally to 129 stores in 111 cities across 14 states, with 33 composite stores & 96 fashion stores with a total area of approx. 10.74 lakhs sq. ft, the company said in a statement.
The company operates a chain of departmental stores in India. Its stores offer apparel for men, women, boys, girls, and toddlers, as well as accessories; and general merchandise products, such as footwear, fashion jewelry, books and stationery, toys and games, bags and luggage etc.
Meanwhile, shares of the company closed at Rs 480.10 apiece, up 1.54 per cent, from previous close on BSE.