Raymond Q4 PAT up 18% YoY, revenue rises 21%

Raymond Ltd reported net profit of ₹229.2 crore in Q4, up 18 per cent on year and revenue that rose over a fifth to ₹2,608.5 crore, on the back of good growth seen in the branded apparel, garments and real estate business.

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Operating margin rose 190 bps to 19.2 per cent and was up 110 bps at 17 per cent for the full year.

Its strategic emphasis on premiumisation, casualisation and expansion of distribution channels significantly contributed to the robust growth of the branded apparel business, the company said. The apparel business saw revenue rise 23 per cent to ₹409 crore.

The real estate business, on which the company is laying a lot of thrust, got bookings worth ₹840 crore in the quarter, driven by the launch of a premium project in Bandra, Mumbai where over 60 per cent of the inventory was sold in 40 days.

The three verticals of the company – lifestyle, real estate and engineering – would be its future growth engines, Chairman and Managing Director, Gautam Hari Singhania said.

Branded textile segment sales maintained its topline of ₹920 crore in the quarter despite muted customer demand and challenging market conditions.

In the apparel segment, it saw growth across all brands and formats. The segment reported an EBITDA margin of 13.4 per cent, lower from year ago due to increased investments in branding and category creation. It opened 200 stores during the year taking the total to 1,518 at the end of the fiscal year.

Aerospace, defence

In Q4, Raymond completed the acquisition of Maini Precision Product, marking its foray into sunrise sectors of aerospace, defence and EV components.

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The board also approved a scheme of arrangement for the creation of two subsidiaries. One will focus on aerospace and defence, while the other will cater to the auto components with electric vehicles and engineering consumables sector, “each charting its unique path of growth with a primary objective of value creation”.