With a capacity of 38 million meters in wool and wool-blended fabrics, Raymond commands over 60

per cent market share in worsted suiting in India and ranks amongst the first three fully integrated
manufacturers of worsted suiting in the world. We are perhaps the only company in the world to have a diverse
product range of nearly 20,000 design and colours of suiting fabric to suit every age, occasion and style.
Raymond export products to over 55 countries including USA, Canada, Europe, Japan and the Middle East.
Raymond produces high-value pure-wool, wool-blended and premium polyester viscose worsted suiting in
addition to half a million blankets and shawls. Our strong in-house skills for research and development have
always resulted in path-breaking new products raising the standard of the Indian textile industry.

LIQUIDITY

Current ratio Quick ratio

2.00 1.20
1.70 1.09
1.00 0.96
1.50 1.47 1.46 0.94
0.80
1.00 1.00 0.94 0.60 0.64
0.90 0.52 0.51
0.40
0.50
0.20
0.00 0.00
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar 19 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar 19

Current Ratio
The current ratio was maintained at greater than 1 until Mar-17 indicating that the company could meet
its short term obligations without any issues. During 2016-2017, there were internal family disputes between
the chairman Vijaypath Singhania and his son Gautham Singhania that led to serious court battles between the
two and ultimately affecting the company’s performance. From 2017 onwards the ratio has fallen below 1
indicating the company is facing issues meeting their short term obligations even until Mar-19.

Quick Ratio
Quick ratio was maintained 1:1(approx.) until the family issue in 2016-17 indicating the company is able to use
instantly it’s near-cash assets to meet its short term obligations. From then on until the recent times things have
gone worse as the ratio is deviating a lot from the standard 1:1 reason being the court battle.
Inventory Turnover Ratio
A steep decrease in inventory in Mar-15 indicates that the company is not converting its inventory into cash as
quickly as before. When this occurs, the company ends up having increased storage, insurance and maintenance
costs.

Receivables turnover Ratio

The turnover ratio is decreasing, indicating a downturn in the economy or in a particular industry. Companies that
are having cash flow problems tend to remit payments later than those with an adequate cash flow.

Inventory turnover ratio Receivables turnover

10.00 ratio
8.00 7.78 10.00
9.10
8.00
6.00
4.62 6.00
4.47 4.11 5.04 5.06
4.00 3.65 4.51 4.52
3.25 4.00 4.08
2.00 2.00
0.00 0.00
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar 19 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar 19

The overall liquidity is on a downward trend as the current ratio is less than one, quick ratio is not 1:1
and the receivables days is also increasing.

ASSET MANAGEMENT

Debt to equity ratio Debt to assets ratio

1.00 0.40
0.94
0.80 0.76 0.77 0.34
0.30
0.60 0.28 0.28
0.40 0.40 0.36 0.20
0.20 0.15 0.14 0.12
0.10
0.00
0.05
0.00
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar 19
Debt to equity ratio
Lower the debt to equity ratio better is the company’s financials. It indicates how the shareholders funds have
been used to incur the debts. Decreasing ratio shows that the funds are being utilized in a good way and lesser
debts are being incurred. More cash is there in hand to make further investments.

Debt to asset ratio

Lower the debt to asset ratio better is the financial condition of the company. It indicates the ratio of our own
money we are putting in and money borrowed to buy an asset. As seen in the graph the trend is decreasing.

Interest coverage ratio

Interest coverage ratio

1.20
1.00 0.96
0.94
0.80
0.74
0.60 0.57 0.54
0.40
0.33
0.20
0.00
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar 19

PROFITABILITY

Operating profit margin Net profit (PBT) ratio (%)

ratio (%) 5.00
4.65
4.28
5.00 4.00
4.00 3.00 3.01 3.07 2.91
3.00
2.00 1.90
2.00
1.00
1.00
0.00 0.00
Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar 19 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar 19

Both, operating profit margin ratio and the net profit(PBT) ratio were in the growing trend until Mar-16 but in
Mar-17 due to demonetization and the internal family disputes(court battles) the figures fell drastically.

From Mar-18 onwards the company is slowly picking up.

CASHFLOWS
Net cash flow from operations was in a growing trend until Mar18 indicating the company has enough cash to
meet the operational cash needs. It fell drastically in Mar19 due to economic slowdown which impacted many
industries including textile.

Net cash flow from investing activities is overall a negative figure indicating the company as healthy growing
company which is continuously investing in productive assets that is buying more assets than they sell.

Net cash flow from financing activities is overall a negative figure indicating that the company is paying off its
debts and interests time to time.

OVERALL FINANCIAL CONDITION

The company is a healthy growing company which has decent liquidity ratios and turnover ratios and has
enough cash to meet its short term cash needs. The company is on expansion path as it is continuously
purchasing assets and is investing quite a lot. The EPS is also indicating a good number telling the shareholders
that their funds are being invested wisely and earning good returns.

REFERENCES
www.aceanalyser.com

www.moneycontrol.com

www.raymond.com