A snapshot of the consolidated financial results: (Post IND AS 116)
| Consolidated Results Snapshot | |||||||
| ₹ in Crores | Q2FY24 | Q2FY23 | Y-o-Y% | H1FY24 | H1FY23 | Y-o-Y% | |
| Net Revenue | 2,321 | 2,191 | 6% | 4,147 | 3,945 | 5% | |
| EBITDA | 382 | 358 | 7% | 634 | 592 | 7% | |
| EBITDA % | 16.5% | 16.3% | 20 bps | 15.3% | 15.0% | 30 bps | |
| Profit on sale of FMCG Business | – | – | – | 983 | – | ||
| Reported PAT | 160 | 159 | 1% | 1,225 | 240 | NA | |
Note: H1FY24 Reported PAT includes ₹ 983 Crores (being 47.66%) of Raymond Ltd. share of profit in associate (Raymond Consume Care Ltd.) on sale of FMCG business.
National, 08th November 2023: At the inflection point of its transformation journey, Raymond continues to attest its growth momentum with strong quarter on quarter performance and Q2FY24 was the 9th consecutive quarter that reported highest ever performance both in terms of revenue and EBITDA.
The focused approach for growth in each of its three verticals of Lifestyle, Real Estate and Engineering businesses was aided with the implementation of key drivers such as strengthening of distribution channels and capitalising on the export orders in Lifestyle business. The revenue grew by 6% in the quarter to ₹ 2,321 Cr with a healthy EBITDA margin of 16.5%, despite postponement in consumer spending cycle on account of delay in festive and wedding season.
During the quarter, the Branded Apparel segment grew by 18% compared to same quarter last year as we were able to extend our product offerings in casual range and additionally we opened 63 stores during the quarter. Our Branded Textile business demonstrated a steady performance compared to the same quarter last year. Raymond’s garmenting business continues to have a robust order book driven by new customer acquisitions and increased order volumes from existing customers, with the business closing the quarter with a 18% strong growth rate as compared to same quarter last year.
The real estate business has showcased a stellar performance during the quarter and recorded a total booking value of over ₹650 Cr in Q2FY24 primarily through our recently launched premium residential projects. Recently, Raymond Realty has been appointed as a Developer for redevelopment of a prominent housing society located in Mahim (West), Mumbai spread across 3.6 acres. The project is estimated to have a revenue potential of more than ₹ 1,700 Cr over the project period. Our real estate business has taken a leap forward by expanding its presence beyond Thane and would now be developing two residential projects based on joint development model. Put together, the revenue potential from both the projects will be in excess of ₹ 3,700 Cr located in most sought-after residential areas of Mumbai.
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). The transaction will be subject to requisite regulatory approvals and is expected to be completed during the current fiscal. 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 Cr with EBITDA of ~₹ 220 Cr in FY23 gives scale and size to the vertical and strong platform for the profitable growth of this business through meaningful synergies.
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.
Commenting on the performance, Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said; “The growth trajectory at Raymond continues its journey as we have recorded yet another stellar quarter. 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 Cr 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. With the onset of festivities and wedding season, we at Raymond are optimistic that there will be an uptick in the consumer demand and overall sentiments should remain positive.”
Q2FY24 Segmental Performance (Post IND AS 116)
Branded Textile segment sales reported steady top line of ₹ 933 Cr in Q2FY24 vs ₹ 912 Cr in Q2FY23. The quarter witnessed lower offtake due to delayed festivals & wedding dates and Hindu calendar also has Adhik maas (Additional month) this year. EBITDA margin for the business remained healthy at 22.1%.
Branded Apparel segment reported topline growth of 18% with sales at ₹ 437 Cr in Q2FY24 as compared to ₹ 370 Cr in the same quarter last year. The growth was driven by strong performance in the retail formats of our own store network and LFS channel and well supported by MBO channel. Continued demand for office wear, new offerings in casual wear drove the sales in Park Avenue, Raymond Ready To Wear, and ColorPlus. The segment reported an EBITDA margin of 12.2%.
During the quarter 63 new stores were opened including 17 Ethnix stores across Tier I – Tier IV towns. Our store network stands at 1,453 stores including 92 Ethnix stores as on 30th September 2023.
Garmenting segment sales grew by 18% to ₹ 312 Cr in Q2FY24 as compared to ₹ 266 Cr in same quarter previous year. The business continues to leverage high demand in US & Europe markets. New customer acquisitions and increased orders from existing customers contributed to growth during the quarter. As the business continues the growth trajectory, capacity augmentation is underway to serve the customers. EBITDA margin for the quarter stood at 7.3%.
High Value Cotton Shirting segment top line was maintained at the same level with a reported sales of ₹211 Cr in the Q2FY24. The segment reported EBITDA margin of 13.4% for the quarter.
Engineering business reported sales of ₹ 201 Cr in Q2FY24 lower by 12% as compared to ₹ 228 Cr in same quarter previous year. While the domestic market witnessed growth however sluggish export market condition impacted topline. The business reported EBITDA margin of 12.7% for the quarter. With the acquisition of MPPL business, Raymond’s engineering business will emerge as a large-scale provider of Engineering, Automotive, EV, Aerospace & Defense components, distinctly positioned to target high-growth precision engineering products with a significant presence across international as well as domestic markets. This transaction will pave way eventually unlocking value in Engineering business leading to significant shareholder value creation for Raymond shareholders.
Real Estate business construction momentum was maintained in TenX Habitat, The Address by GS and TenX Era projects. The business delivered a strong sales performance of ₹ 243 Cr. In the new projects ‘The Address by GS 2.0 ’and ‘Invictus by GS, launched in Q2FY24 we have received a healthy contribution in overall bookings. The performance reaffirms customer confidence and acceptance of our high-quality product coupled with a fast-aced construction momentum in the ongoing projects.
During the quarter, total booking value was ~₹ 650 Cr in the launched projects with ~85% of total units in Ten X Habitat, ~89% of total units in The Address by GS, ~44% of launched units in TenX Era, ~49% of launched units in The Address by GS 2.0’ & ~25% of launched units in Invictus by GS project being sold.
About Raymond Limited
Raymond is India’s largest integrated worsted suiting manufacturer that offers end-to-end solutions for fabric and garmenting. Over the years, Raymond has been synonymous with quality, innovation and market leadership. It has some of the leading brands within its portfolio – ‘Raymond Ready to Wear’, ‘Park Avenue’, ‘ColorPlus’, ‘Parx’, ‘Raymond Made to Measure’ and ‘Ethnix by Raymond’ amongst others. Raymond has one of the largest exclusive retail networks in the country with about 1,450 stores in more than 600 towns. The group has a presence in the engineering space engaged in precision engineered products with an expansive presence in national as well as international markets. Raymond forayed into realty sector through the launch of its maiden project Ten X Habitat spread across 14 acres housing ~3,100 residential units, followed by launch of a premium residential project – The Address by GS housing ~550 residential units, Ten X Era with ~ 900 residential units. Recently, Raymond launched a new project The Address by GS 2.0 with ~ 775 units and The Invictus by GS with ~ 102 residential units.
To know more, visit us today at www.raymond.in
