Raymond Q3 profit almost doubles to Rs 185 crore

Diversified group Raymond on Thursday said its consolidated net profit in December quarter FY24 almost doubled to Rs 185.39 crore on strong growth in real estate and branded apparel businesses.

It had logged a net profit of Rs 96.60 crore in October-December FY23, according to a regulatory filing by the company.

Revenue from operations rose to Rs 2,386.16 crore from Rs 2,188.16 crore in the year-ago period.

"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," said an earning statement from Raymond.

This was "10th consecutive quarter of profitable growth," it added.

Total expenses of the Singhania family-controlled firm in the December quarter were at Rs 2,198.06 crore, up 11.16 per cent.

Total income was at Rs 2,450.32 crore, up 11.4 per cent.

During the quarter, revenue from the textile segment stood at Rs 908.92 crore. It was Rs 214.39 crore from the shirting segment, witnessing a double-digit growth across all brands.

Growth in the shirting segment reflects a strategic emphasis on casualisation and the introduction of newer designs. 

The segment reported an EBITDA margin of 13.9 per cent led by revenue growth & operational efficiencies, it said.

The apparel segment reported a revenue of Rs 437.25 crore while garmenting section recorded a revenue of Rs 281.19 crore driven by sustained demand in the US & Europe markets.

In garmenting, "EBITDA margin for the quarter stood at 10.8 per cent mainly due to operational efficiency," it said.

In the engineering segment, Raymond's tools & hardware business revenue stood at Rs 107.59 crore. It was Rs 109.27 crore from auto components.

Revenue from real estate and development of property in the December quarter was at Rs 438.98 crore.

"The business showcased a strong sales performance with 50 per cent growth to Rs 439 crore from Rs 292 crore in the same quarter the previous year showing customer confidence and acceptance of our high-quality product coupled with a fast-paced construction momentum in the ongoing projects," it said.

Meanwhile, in a separate filing, Raymond said its board in a meeting held on Thursday approved winding up of Raymond Lifestyle (Bangladesh), a wholly-owned subsidiary of the company.

Raymond Bangladesh was incorporated to carry out apparel trading business in Bangladesh. However, it has not yet commenced any business activities and accordingly, it was considered to wind up the company.

Shares of Raymond Ltd on Thursday settled at Rs 1,776.40 apiece on BSE, up 0.06 per cent.