Textiles to engineering conglomerate Raymond’s board has reappointed Gautam Singhania, who is embroiled in a divorce battle with his wife Nawaz Modi Singhania,  as managing director for five years effective July 1.

Nawaz Modi Singhania, a non-executive director with the company, had earlier alleged that company’s funds were being used for Singhania’s personal benefits.

On Friday, Raymond said in a regulatory update, “The group has made enormous progress under the stewardship of Singhania.”

It said his vision is to take Raymond from among the most respected Indian brands to among the best in the global market.

Singhania’s re-appointment, following the expiration of his current term, comes  amid  allegations of assault and financial impropriety made by Nawaz Modi Singhania. 

Following the allegations, proxy advisory firm Institutional Investor Advisory Services India had urged Raymond’s independent directors to investigate the allegations and appoint an interim CEO till the probe was completed.  

On April 25, JK Investors (Bombay) and Smart Advisory, two companies held by promoters of Raymond Group, removed Nawaz Modi Singhania as a director from their boards after shareholders voted for her ouster.

Meanwhile, Raymond on Friday reported a 18% increase in its consolidated net profit in the March quarter to Rs 229 crore  compared with Rs 194 crore recorded during the same period a year-ago, led by strong momentum across all businesses. 

Its revenue rose 21.3% to Rs 2,609 crore (Rs 2,150 crore in Q4FY23), while Ebitda rose 29.4% to Rs 436 crore (Rs 337 crore).

A consensus estimate of Bloomberg analysts were expecting Raymond to post a net profit of Rs 210 crore and revenue of Rs 2,444 crore and Ebitda of Rs 392 crore.

Branded Textile segment sales maintained with the top line of Rs  920 Cr in Q4FY24, compared to  Rs  902 Cr in Q4FY23 despite muted customer demand and challenging market conditions. Ebitda margins maintained at 21.9% as compared to 21.8% in the previous quarter mainly due to operational efficiency.

Branded apparel segment posted a topline growth of 23% with sales at Rs 409 crore, compared with Rs 332 crore in the same quarter last year.