Apparels and textile major Raymond has posted a lower net profit of Rs 32.04 crore (Rs 320 million) in second quarter ended September 30, 2004.

The depreciation of rupee resulted in foreign exchange losses compared to Rs 39.49 crore (Rs 394 million) profit posted during the same quarter of previous fiscal.

The company's total income rose to Rs 353.92 crore (Rs 3.53 billion) during the quarter under review from Rs 311.13 crore (Rs 3.11 billion) posted during the second quarter of the previous fiscal, Raymond said on Monday.

The company's net profit for the six-month period ended September 2004 fell to Rs 35.18 crore (Rs 351 million) on a total income of Rs 561.30 crore (Rs 5.61 billion), as against a net profit of Rs 60.41 crore (Rs 604 million) on a total income of Rs 499.36 crore (Rs 4.99 billion), it said.

The profit for the second quarter was impacted due to the depreciating rupee, which resulted in foreign exchange losses of Rs 2.77 crore (Rs 27 million), higher interest charges of Rs 5 crore (Rs 50 million) and one time excise duty payment of Rs 12.97 crore (Rs 129 million), it added.

The company also incurred a VRS compensation payment of Rs 1.01 crore (Rs 10 million), additional wages and benefits of Rs 4.72 crore (Rs 47 million) and higher raw material costs, it said.

Raymond chairman and managing director Gautam Hari Singhania said "The company is confident of achieving planned performance for the year 2004-2005 as there is increasing buoyancy in all its business."

"Our investments during the current year in upgradation, capacity expansion in denim and garmenting are proceeding as planned. The company is also confident of positioning itself well in the impending post-quota scenario," he said.