Mumbai: Raymond Ltd has announced a significant improvement in its operating results for the first quarter ended 30 June 2002.

The profit before tax for the first quarter was Rs 6.23 crore against a loss of Rs 3.14 crore during the same quarter of the previous year. The net sales were higher by 26 per cent at Rs 166.70 crore (Rs 132.14 crore) despite continued recession in the market.

Raymond chairman and managing director Gautam Hari Singhania says: Despite difficult market conditions, we have been able to achieve good results in the first quarter. Thrust on improving market penetration and cost-cutting is continuing and will yield favourable results in years to come.

The revenue of the textile division registered an impressive growth of 46 per cent in value at Rs 108.99 crore (Rs 74.51 crore) and 39 per cent in volume at 37.62 lakh metres (27.05 lakh metres). Export sales were higher by 75 per cent in volume at 7.7 lakh metres (4.4 lakh metres) and in value was higher by 64 per cent at Rs 20.3 crore (Rs 12.4 crore).

The sales of the textile division, which contributes substantially to the companys total sales and profitability, are of seasonal nature and the bulk of the despatches of high-value fabric take place during later part of the year.

The denim division also recorded a growth of 12 per cent in its revenues at Rs 27.54 crore (Rs 24.53 crore) and 16 per cent in volume at 25 lakh metres (21.6 lakh metres). The division is in the process of expanding its capacity from 10 million metres to approximately 20 million metres in two phases. Trial runs are on for the first phase of 5 million metres. The second phase of another 5 million metres is likely to be commissioned by March 2003.

The files division recorded sales of Rs 30.16 crore marginally lower than that of the previous year. During the quarter, Hindustan Files Ltd, a wholly owned subsidiary of the company, acquired a file-manufacturing unit in Kolkata, which would provide greater synergy to the files business.

The net profit after tax was Rs 4.31 crore after providing for tax Rs 1.92 crore against a loss Rs 4.64 crore for the same quarter of the previous year. The Raymond group is a Rs 1,400-crore-plus conglomerate. The group is focusing on its core business of textiles and engineering files and tools.