Raymond Ltd on Thursday reported fiscal third quarter profit at Rs 183.60 crore, up 93.6 per cent in comparison to Rs 94.84 crore during the corresponding quarter of the previous year. It posted revenue from operations at Rs 2386.18 crore, up 10.1 per cent as against Rs 2168.16 crore during the third quarter of FY23. The company EBITDA stood at Rs 362 crore, up 13.4 per cent on-year.
The company said that the improved operating and financial performance during the quarter was led by strong revenue growth of 50 per cent in real estate business and over 20 per cent in branded apparel business.
“Despite subdued consumer demand in the retail market post festivities, our focused approach on casualization, newer designs and distribution reach expansion helped Branded Apparel business to grow from Rs 364 crore in Q3FY23 to Rs 437 crore in Q3FY24 witnessing growth of 20 per cent,” Raymond said in a statement.
Raymond Realty business, meanwhile, reported sales increase from Rs 292 crore in Q3FY23 to Rs 439 crore in Q3FY24. The company also signed JDA’s during the quarter of over Rs 3,000 crore, making total JDA projects under development worth over Rs 5,000 crore.
The company is running projects worth Rs 9,000 crore on its Thane land and has a further potential to generate Rs 16,000 crore making a total potential revenue of Rs 25,000 crore from Thane landbank.
Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited, said, “I am delighted to share that Q3 has been a momentous quarter, as we have delivered 10th consecutive quarter of growth with highest ever revenue and profitability across businesses. Our retail expansion continued, and we have an aggressive plan to open over 500 stores during the next 3 years. In the Real Estate business, we signed 2 JDA’s with over Rs 3,000 crore during the quarter as well. Another big development in the third quarter of this fiscal, Raymond Group’s Engineering Business is now set to grow exponentially as we foray into sunrise sectors of Aerospace, Defence and EV components business post the acquisition of Maini Precision Products Limited.”
Furthermore, Raymond Ltd said, “Based on the corporate action initiated, the proposed demerger of Lifestyle Business is on track and the company has received the SEBI approval for the same. The Extraordinary General Meeting (EGM) for shareholders and other relevant meeting is schedule on 26th Feb 2024.”
Raymond Ltd’s Q3 performance across segments
Branded Textile segment sales maintained with the top line of Rs 909 crore in Q3FY24 despite muted customer demand and challenging market conditions. EBITDA margins stood at 21.6 per cent as compared to the previous quarter mainly due to operational efficiency.
Branded Apparel segment reported topline growth of 20 per cent with sales at Rs 437 crore in Q3FY24 as compared to Rs 364 crore in the same quarter last year. The segment reported an EBITDA margin of 13.9 per cent led by revenue growth and operational efficiencies. The quarter witnessed the 100th milestone store of ‘Ethnix by Raymond’ taking the tally to 105 stores. The total retail store network now stands at 1,512 stores as of 31st December 2023.
Garmenting segment sales was at Rs 281 crore in Q3FY24. The performance was driven by sustained demand in US and Europe markets from our existing customers and through new customer acquisitions across reputed brands.
High Value Cotton Shirting reported sales of Rs 214 crore in Q3FY24, up 10 per cent as compared to Rs 195 crore in the same quarter previous year.
Engineering business reported sales of Rs 217 crore in Q3FY24, up 4 per cent as compared to Rs 208 crore during the same quarter previous year. In domestic markets, growth was driven by demand in the auto components category especially in the PV, CV and industrial sectors driving growth in flex plates and bearings categories. While the domestic market witnessed growth however, sluggish export market conditions impacted the topline.
Real Estate business showcased a strong sales performance with 50 per cent growth to Rs 439 crore from Rs 292 crore in the same quarter previous year showing customer confidence and acceptance of our high-quality product coupled with a fast-paced construction momentum in the ongoing projects. Total booking value was ~Rs 428 crore in the launched projects.