Mumbai, Jan. 21: Raymond Ltd?s third-quarter net profit has dropped 18 per cent to Rs 25.08 crore from Rs 30.54 crore in the corresponding period last year.

However, net sales grew to Rs 299.16 crore from Rs 257.75 crore in the year-ago period. The topline, including sales and other income, gained 14.3 per cent at Rs 315.02 crore (Rs 275.58 crore).

For the nine-month period, the topline was Rs 876.32 crore (Rs 774.94 crore).

Raymond said profit for the third quarter was impacted mainly because of the write-off of VRS compensation payment of Rs 1.98 crore, additional wages/benefits of Rs 7.24 crore and higher raw material costs, particularly in cotton and steel.

Chairman and managing director Gautam Hari Singhania said considering the benefits of the rightsizing initiatives and continued buoyancy in all its businesses, particularly in exports, Raymond is confident of achieving the planned results.

During the third quarter, operations of its Thane plant were closed down, which has affected the business of the files division.

Quarterly revenues of the textile division registered a growth of around 17 per cent at Rs 200.71 crore and it stood at Rs 545.59 crore in the nine-month period, an increase of 8.4 per cent.

The sales volume is 5.5 million metres for the third quarter and 16.94 million metres for nine months.

Exports of the textile division grew by 77 per cent at Rs 23 crore for the third quarter.

The denim division also recorded a growth in revenue by 18 per cent at Rs 58.16 crore for the third quarter and around 25 per cent at Rs 166.10 crore in nine months. The division registered an increase in sales volume by 10 per cent at 5.03 million metres for the quarter.

Meanwhile, Park Avenue, the leading apparel brand from the Raymond Group, today launched its exclusive store in Mumbai.

The launch is the first in the series of exclusive brand stores planned by Raymond Apparel Limited (RAL), the wholly-owned subsidiary of Raymond, which markets the Park Avenue brand of apparel and men?s accessories.

Apart from brand stores for its other apparel brands ? Parx and Manzoni ? RAL plans to launch six such exclusive Park Avenue stores across the country by the end of 2005 in major metros such as Mumbai, Delhi, Bangalore and Chennai.