Raymond Limited on Wednesday recorded its Q2 profit for the financial year 2023-24 at Rs 159.78 crore, up 0.6 per cent in comparison to Rs 158.86 crore during the second quarter of FY23. It posted revenue from operations at Rs 2253.40 crore, up 3.9 per cent as against Rs 2168.24 crore during the quarter ended September 2022, despite postponement in consumer spending cycle on account of delay in festive and wedding season. The company EBITDA stood at Rs 314 crore, down 6 per cent on-year.
The focused approach for growth in each of its three verticals of Lifestyle, Real Estate and Engineering businesses was aided with the implementation of key drivers such as strengthening of distribution channels and capitalising on the export orders in Lifestyle business, the company said.
Raymond Q2 performance across business verticals
During the quarter, the branded apparel segment grew by 18 per cent compared to the same quarter last year with the company extending its product offerings in casual range and additionally opening 63 stores during the quarter. “Our Branded Textile business demonstrated a steady performance compared to the same quarter last year. Raymond’s garmenting business continues to have a robust order book driven by new customer acquisitions and increased order volumes from existing customers, with the business closing the quarter with a 18 per cent strong growth rate as compared to the same quarter last year,” it said.
Garmenting segment sales grew by 18 per cent to Rs 312 crore in Q2FY24 as compared to Rs 266 crore in the same quarter previous year. The business continues to leverage high demand in US & Europe markets. New customer acquisitions and increased orders from existing customers contributed to growth during the quarter.
High Value Cotton Shirting segment top line was maintained at the same level with a reported sales of Rs 211 crore in the Q2FY24. The segment reported an EBITDA margin of 13.4 per cent for the quarter.
Engineering business reported sales of Rs 201 crore in Q2FY24 lower by 12 per cent as compared to Rs 228 crore in the same quarter previous year. The business reported an EBITDA margin of 12.7 per cent for the quarter.
The real estate business, it added, has recorded a total booking value of over Rs 650 crore in Q2FY24 primarily through its recently launched premium residential projects. Recently, Raymond Realty has been appointed as a Developer for redevelopment of a prominent housing society located in Mahim (West), Mumbai spread across 3.6 acres. The project, it said, is estimated to have a revenue potential of more than RS 1,700 crore over the project period. “Our real estate business has taken a leap forward by expanding its presence beyond Thane and would now be developing two residential projects based on a joint development model. Put together, the revenue potential from both the projects will be in excess of Rs 3,700 crore located in most sought-after residential areas of Mumbai,” it said in a statement.
Earlier last week, Raymond Group announced its foray into sunrise sectors of Aerospace, Defense and EV components business by acquiring 59.25 per cent stake in the business of Maini Precision Products Ltd (MPPL). Further with the consolidation of Engineering business companies of JK Files & Engineering Ltd, RPAL, and Maini Precision Products Ltd, the proforma consolidated engineering business revenue of ~Rs 1,600 crore with EBITDA of ~Rs 220 crore in FY23 gives scale and size to the vertical and strong platform for the profitable growth of this business through meaningful synergies, Raymond said.
Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited, said, “The growth trajectory at Raymond continues its journey as we have recorded yet another stellar quarter. 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 Rs 1,700 crore 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. 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.”