Social Navigation

Raymond Q2 net profit rises marginally to ₹159.8 crore


Mumbai: Textile, apparel, and real estate conglomerate Raymond Ltd on Wednesday reported a marginal rise in its net profit to 159.78 crore for the September quarter from 158.86 crore in the previous year. 

While the profit growth was modest, it came amid a delayed festive and wedding season, which typically contributes significantly to the company’s sales.

“With the onset of festivities and wedding season, we at Raymond are optimistic that there will be an uptick in the consumer demand and overall sentiments should remain positive,” said Gautam Hari Singhania, chairman & MD, Raymond Ltd.

Revenue from operations grew by 4% year-on-year to 2,253.4 crore from 2,168.2 crore in the same period previous quarter.

“The revenue grew by 6% in the quarter to 2,321 Cr with a healthy EBITDA margin of 16.5%, despite postponement in consumer spending cycle on account of delay in festive and wedding season, “ the company said.

The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) stood at 382 crore, up 7% from 358 crore in the previous year.

“Raymond continues to attest its growth momentum with strong quarter on quarter performance and Q2FY24 was the 9th consecutive quarter that reported highest ever performance both in terms of revenue and EBITDA,” the company said.

The branded textile segment saw a stable top-line performance during the September quarter, with sales of 933 crore, compared to 912 crore last year. The quarter saw a reduced offtake due to postponed festivals and wedding dates, further impacted by the presence of an additional month (adhik maas) in the Hindu calendar this year. Despite these factors, the segment maintained a healthy Ebitda margin of 22.1%.

The branded apparel segment achieved significant growth in the second quarter of fiscal year 2024, with sales reaching 437 crore, an impressive 18% increase compared to 370 crore in the same quarter last year. This remarkable growth is attributed to the exceptional performance of the company’s own retail stores and the large format stores (LFS) channel.

Garmenting segment sales grew by 18% to 312 crore in Q2 FY2024. The business continues to leverage high demand in the US & Europe markets, the company said.

“Engineering business reported sales of 201 Cr in Q2FY24 lower by 12% as compared to 228 Cr in same quarter previous year. While the domestic market witnessed growth however sluggish export market condition impacted topline,” the company said.

Real estate business sustained its construction momentum across the TenX Habitat, The Address by GS, and TenX Era projects, resulting in robust sales of 243 crore. The newly launched projects, ‘The Address by GS 2.0’ and ‘Invictus by GS,’ introduced during Q2FY24, contributed significantly to the overall bookings, demonstrating the strong appeal of these projects.

During the September quarter, total booking value was 650 crore in the launched projects with 85% of total units in Ten X Habitat, 89% of total units in The Address by GS, 44% of launched units in TenX Era, 49% of launched units in The Address by GS 2.0’ and 25% of launched units in Invictus by GS project being sold.

“We continue to achieve milestones across businesses as we recently announced our second project under joint development in our real estate business with a potential of 1,700 Cr revenue. With acquisition of MPPL, our engineering business will now be consolidated and will participate in sunrise sectors like aerospace, defense and EV components, which have phenomenal growth opportunities,” said Gautam Singhania.

On Wednesday, shares of Raymond closed marginally lower at 1,864.5 on the National Stock Exchange.

Milestone Alert!Livemint tops charts as the fastest growing news website in the world Click here to know more.

Download The Mint News App to get Daily Market Updates & Live Business News.


Updated: 08 Nov 2023, 07:03 PM IST

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.