Raymond Q2 Results: Profit flat at ₹160 cr; firm optimistic on uptick in consumer demand

The company's operating profit or EBITDA fell 6% on-year to ₹314 crore, compared to ₹335 crore in the September quarter of previous fiscal. The margin stood at 13.9% despite postponement in consumer spending cycle on account of delay in festive and wedding season, the company said.

During the quarter, the branded apparel segment grew by 18% compared to same quarter last year as Raymond was able to extend its product offerings in casual range and additionally open 63 stores during the quarter.

The real estate business recorded a total booking value of over ₹650 crore in Q2FY24 primarily through its recently launched premium residential projects.

Last week, Raymond Group announced its foray into sunrise sectors of Aerospace, Defense and EV components business by acquiring 59.25% stake in 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 ₹1,600 crore with EBITDA of ₹220 crore in FY23 gives scale and size to the vertical and strong platform for the profitable growth of this business through meaningful synergies," the company said.

Raymond Group has assured that the three distinct vectors of growth, which are Lifestyle, Realty & Engineering businesses will further create shareholder value for each of the businesses, the company said in a statement.

With the onset of festivities and wedding season, Gautam Hari Singhania, Chairman and Managing Director at Raymond, is optimistic that there will be an uptick in the consumer demand and overall sentiments will remain positive.

"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 ₹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," Singhania said.

Shares of Raymond Ltd were trading 0.094% up at ₹1,868.65 apiece on NSE during Wednesday's late afternoon deals. The scrip has rallied 25% since the beginning of this year and it has risen 52% in the last one year.