Updated May 3rd, 2024 at 15:10 IST

Raymond posts 18% jump in Q4 profit driven by real estate demand surge

Conversely, Raymond's textile segment, which constitutes the largest portion of its revenue, witnessed a more subdued growth of 2%.

Reported by: Business Desk
Raymond Realty | Image:Raymond Realty
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Raymond Q4 profit: Mumbai-based diversified conglomerate, Raymond, renowned for its diverse portfolio ranging from clothing to real estate, has announced a remarkable 18 per cent surge in its fourth-quarter profits, driven primarily by robust demand within its real estate sector. According to Reuters, the company disclosed on Friday that its consolidated profit catapulted to Rs 229 crore for the quarter ending on March 31, marking a substantial increase from the Rs 194 crore reported in the corresponding period last year.

Revenue from operations also witnessed a notable upswing, climbing by 21 per cent during the quarter. This surge was particularly pronounced in the real estate segment, which experienced a surge in bookings following the launch of its inaugural joint development project in Bandra, Mumbai. Notably, this segment now contributes a quarter of the company's revenue mix, with its revenue more than doubling in the recent quarter.

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While the urban consumer goods market in India has shown resilience amidst a broader economic slowdown, rural areas, grappling with inflationary pressures, have exhibited signs of cautious spending. Analysts, however, anticipate a resurgence in demand in the forthcoming quarters.

Conversely, Raymond's textile segment, which constitutes the largest portion of its revenue, witnessed a more subdued growth of 2 per cent amid tepid customer demand and challenging market conditions.

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Despite these dynamics, Raymond's earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin expanded to 19.2 per cent, up from 17.3 per cent a year earlier.

In a strategic move to diversify its business portfolio, Raymond recently finalised the acquisition of Maini Precision Product to venture into aerospace, defense, and electric vehicle components. With this consolidation, the company aims to establish two units, one dedicated to aerospace and defense, and the other catering to the auto components sector, with a focus on electric vehicles and engineering consumables.

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Moreover, Raymond announced the re-appointment of Gautam Hari Singhania as managing director for a five-year term, effective from July 1, 2024, underscoring its commitment to continuity and stability in leadership.

(With Reuters inputs.)

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Published May 3rd, 2024 at 15:10 IST