According to Raymond Chairman and Managing Director Gautam Hari Singhania, the diversified group Raymond anticipates its growth rate to stay “at least double of inflation” this fiscal year as demand has begun to gradually pick up.
With growth in the mid to high teens percentage over the next three to five years, Singhania claims he is “optimistically” looking towards the future.
The diversified corporation anticipates further growth from its new real estate sector, while its lifestyle division, which includes verticals for shirts and suits, propels growth.
FY23 has been a successful year for Raymonds thus far after Covid. That was advantageous to everyone. The situation has improved. I have an upbeat outlook on the future,” Singhania told PTI.
Raymond operates two primary businesses: real estate and leisure. estate. The middle class, which drives demand for housing, education, and apparel, was facing a slowdown as a result of the recession’s slight effect on income.
“I believe that it is slowly beginning to return, which is a good sign. And because May is a busy month for weddings, I have hope that things will start to pick up,” he continued.
Singhania responded that there are still problems with supply chains around the world when asked about global inflation. “They’re not leaving… It is getting better, but maybe if you wait a few more quarters, it will improve even more.
Singhania responded to Raymond’s FY24 growth forecast by saying: “We must increase at least double the inflation rate. That ought should at least strive… Real estate and other legacy industries will develop more quickly than our cloth industry.
Nonetheless, the real estate industry has a limited customer base. Thus, you should definitely have a look at the combined gross, which is, in my opinion, double the rate of inflation, he added.
Singhania responded, “Our margins are improving quarter after quarter,” when asked about the margins.
The increasing trend from the previous six quarters is anticipated to continue, according to Raymonds, the owner of brands like Park Avenue and ColorPlus.
We at Raymond are optimistic that we will continue to expand our revenues and profitability in the mid to high teens % in the next quarters in accordance with our continuous growth for the past six straight quarters. 3 to 5 years, according to Singhania.
As it concentrates on the new offering Ethnix by Raymond and other fashion brands, this growth will be fueled by the retail expansion and distribution reach across the nation.
The expansion will predominantly follow an asset-light strategy, he continued, adding that “we expect to open 400 to 500 new retail outlets.”
Singhania claims that the rapid speed of infrastructure development and the rising middle class’ increased desire to purchase high-end goods are indicators of the strength of the economy.
“Weddings in India are usually a great opportunity for Raymond, and in the next two months, there will be roughly 40 weddings. Following the covid, NRI weddings have also become more popular in India, he claimed. Singhania stated that its orders for exports are complete and it is adding new clients. It has established 19 new lines to its apparel industry and invested over Rs 200 crore.
“We value our special position as a top supplier to international brands. As we continue to add new clients, our order book for the garment export is already full. This is a great moment for Raymond as a global clothier, according to Singhania.
Singhania stated that Raymond Realty has “credibility” in the market and is committed to on-time home deliveries when discussing the company’s real estate venture.
“Developing Thane land parcel and using joint development agreements (JDAs) route in Mumbai Metropolitan Region will be the driving forces behind the expansion in our real estate sector” (MMR). We are on course to become a net debt-free business in the following two years,” he claimed.
In FY22, Raymond, which is also active in the engineering, consumer goods, and denim industries, had a combined revenue of Rs. 6,348 crore