Raymond Ltd on Tuesday reported a nearly 6 per cent rise in quarterly core profit on the back of higher sales in its key textiles and apparel businesses.

The textile maker reported consolidated earnings before interest, taxes, depreciation and amortisation of ₹379 crore for the three months to March 31, up from ₹358 crore a year before.

However, the company's net profit was down over 26 per cent at ₹194 crore during the period, as a larger tax deferment had propped up profitability in the quarter ended March 2022.

India's retail inflation eased towards the end of the quarter and is likely to drop further in the current fiscal year. Easing inflation and rising disposable incomes are expected to drive consumer spending, fuelling a further recovery in demand.

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The Mumbai-based firm, one of India's largest suit and shirt makers, has benefited from a rise in demand for textiles as Indians shop clothes for weddings and step out more often following successive years of Covid-19 curbs.

Quarterly revenue rose about 10 per cent to ₹2,150 crore, with textile sales slightly up. Meanwhile, the apparel and garment segments posted an 18.9 per cent and 43.6 per cent jump in sales, respectively.

Meanwhile, the company last month said it would de-merge into two separate listed entities – Raymond and Raymond Consumer Care – to turn net debt free and unlock higher value.

While Raymond would focus only on real estate, engineering and denim production, Raymond Consumer Care would manage its flagship lifestyle business that houses Raymond brand of suits and Parx brand of casual wear.

Shares of Raymond fell as much as 1.6 per cent after reporting results but reversed course to close 0.9 per cent higher.

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