Raymond Ltd, one of India's leading textile and apparel companies, has swung to a third quarter profit, helped by higher sales and lower material costs.

The company, which claims to be the largest integrated manufacturer of worsted fabric in the world, said net profit was Rs 425.7 million in the three months to December 31, compared with a loss of Rs 152 million a year ago. Sales rose 5.1 per cent to Rs 3.72 billion, up from Rs 3.54 billion last time, with revenues in its textile division soaring 26 per cent to Rs 3.68 billion.

Raymond's branded apparel business posted net sales of Rs 1.38 billion with margins were maintained at 9 per cent. During the quarter, the company said it added 26 new stores under various formats, taking its total to 618 retail stores. Like-to-like store sales growth for the quarter was 8 per cent.

Mr Gautam Hari Singhania, chairman and managing director of Raymond Limited said: "Our business has witnessed healthy volume growth and we are now focused to adapt to the changing needs of the consumer, who is now becoming increasingly value-centric. We continue to remain bullish on the long-term Indian consumption story and believe in creating new markets and building on our existing network presence."

Raymond also said its wholly-owned subsidiary in Portugal -- Regency Texteis Portuguesa Limitada -- filed for insolvency in December due to "adverse changes in market conditions."