Raymond Reports December 2024 Quarter Results Highlighting Debt Reduction and Sales Decline

Raymond, a midcap player in the textile industry, has recently reported its financial results for the quarter ending December 2024. The results indicate a notable shift in the company's financial performance, with the overall score reflecting a revision in its evaluation.
On a positive note, Raymond has achieved its lowest debt-equity ratio in the last five half-yearly periods, standing at 0.26 times. This suggests a strategic reduction in borrowing relative to equity capital, which may enhance financial stability. Additionally, the company has demonstrated efficiency in managing its receivables, as evidenced by a debtor turnover ratio of 12.31 times, the highest in the same timeframe.

Conversely, the financial results also reveal significant challenges. Net sales for the quarter reached Rs 953.90 crore, showing a substantial decline of 60.02% year on year. Profit before tax, less other income, was reported at Rs 60.66 crore, reflecting a decrease of 67.00% year on year. Similarly, profit after tax fell to Rs 72.13 crore, down 60.7% year on year. Furthermore, a considerable portion of the profit before tax, at 34.14%, stemmed from non-operating income, raising concerns about the sustainability of the business model.

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