Raymond, a diversified group, reported a nearly twofold increase in its consolidated net profit for the December quarter of Financial Year 2024, reaching INR 185.39 crore. This significant growth was driven by robust performances in the real estate and branded apparel segments.
According to a regulatory filing by the company, it recorded a net profit of INR 96.60 crore in the October-December period of Financial Year 2023.
The revenue from operations increased to INR 2,386.16 crore from INR 2,188.16 crore in the corresponding period of the previous year.
“The improved operating and financial performance during the quarter was led by strong revenue growth of 50% in real estate business and over 20% in the branded apparel business,” said an earning statement from Raymond.
This was “10th consecutive quarter of profitable growth,” it added.
In the December quarter, the total expenses of the firm controlled by the Singhania family amounted to INR 2,198.06 crore, marking an 11.16% increase.
The total income increased by 11.4% to reach INR 2,450.32 crore.
In the quarter, the textile segment generated revenue of INR 908.92 crore, while the shirting segment contributed INR 214.39 crore, experiencing 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% led by revenue growth & operational efficiencies, it said.
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The apparel segment reported a revenue of INR 437.25 crore while garmenting section recorded a revenue of INR 281.19 crore driven by sustained demand in the US & Europe markets.
In garments, “EBITDA margin for the quarter stood at 10.8% mainly due to operational efficiency,” it said.
Within the engineering segment, the revenue from Raymond’s tools and hardware business was INR 107.59 crore, while the auto components segment contributed INR 109.27 crore.
The revenue generated from real estate and property development in the December quarter amounted to INR 438.98 crore.
“The business showcased a strong sales performance with 50% growth to INR 439 crore from INR 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 the 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 INR 1,776.40 apiece on BSE, up 0.06%.