Raymond gains after Q1 net profit grow 26% YoY to ₹57 crore; check details

In its Q1 results released on August 6, Raymond reported a 98% year-on-year growth in its consolidated revenue from operations at ₹937.65 crore compared to ₹473.37 crore in Q1FY24. The company’s net profit for the June quarter grew over 26% to ₹57.04 crore from ₹45.02 crore in the corresponding quarter of the preceding fiscal.

Sequentially, Raymond’s revenue from operations for the June quarter of FY25 remained flat, falling 0.59% from ₹943.3 crore in the March quarter of FY24. In Q1FY25, the company’s net profit for Q1FY25 also fell 51% on a quarter-on-quarter basis from ₹116.56 crore in Q4FY24.

Raymond’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew 82% to ₹162 crore in Q1FY25 against ₹89 crore in Q1FY24. EBITDA margin dropped 110 basis points (bps) to 16.2% in Q1FY25 from 17.3% in Q1FY24.

Raymond Ltd completed the demerger of its lifestyle business Raymond Lifestyle Ltd (RLL) on June 30, 2024. The allotment of RLL’s shares is done, and the listing of the demerged entity is expected to take place in Q2FY25, according to the company's information to the bourses. Last month, the company’s Board approved the demerger of its real estate arm to a separate listed entity.

Raymond mentioned in the investor presentation after Q1 results that it initiated the demerger of its real estate business on July 4, 2024, into its wholly-owned subsidiary, Raymond Realty Limited (RRL). Each Raymond Ltd (RL) shareholder will get one share of RRL for every share held of Raymond Ltd.

Raymond Ltd also plans to restructure its engineering business through a composite scheme of arrangement in which two new subsidiaries will be created, as per the presentation. One subsidiary will focus on aerospace and defence, and the other will cater to the auto component and engineering consumable sector. The scheme for the restructuring of Raymond’s engineering business has been filed with the National Company Law Tribunal (NCLT).

Raymond Ltd shares closed 0.65% lower at ₹1,918 apiece on the NSE on Thursday.