Raymond Q2 Results: Profit jumps over two-fold to Rs 162 crore

Diversified group Raymond Ltd on Thursday reported over a two-fold jump in its consolidated net profit to Rs 161.95 crore for the second quarter ended September 30 on improved growth across its business segments. The company had posted a net profit of Rs 56.15 crore during the July-September quarter of the previous fiscal, Raymond said in a regulatory filing.

Its revenue from operations rose 39.76 per cent to Rs 2,168.24 crore from Rs 1,551.32 crore in the corresponding quarter previous fiscal.

"Raymond continues to deliver high operating performance along with profitable growth for the 4th consecutive quarter, leveraging optimism in the market and improved consumer demand.

"Focused approach has driven growth over pre-Covid levels and cost consciousness has led to deliver yet another record profitable quarter," said an earning statement by the company.

Raymond's total expenses surged 31.27 per cent to Rs 1,954.18 crore in the second quarter of FY23 against Rs 1,488.64 crore a year back.

The company operates in the textile and apparel sector and other segments like consumer care, realty and engineering.

Its B2C businesses continue to grow during the July-September quarter, while the garment export business showed resilience and the order book remained healthy from the US and Europe markets.

"The real estate sector witnessed the sustained demand from home buyers that contributed to growth in our realty business with varied product offerings," the company said.

Raymond's net debt reduced to Rs 1,286 crore as of September 30, 2022, helped by free-cash-flow generation, it added.

"However, there was an increase in working capital deployment primarily in production and sales to meet strong festive and winter wedding demand in H2," Raymond said.

Raymond Chairman and Managing Director Gautam Hari Singhania said the group's businesses are delivering consistent growth in both revenues and profitability on a quarter-on-quarter basis.

"All four quarters are respectively record quarters in the last 12 months. Our quality products and services are tailored to meet the ever-changing demand from consumers be it fashion or real estate and this approach has helped us to achieve profitable growth," he said.

In the September quarter, Raymond's revenue from textiles was Rs 911.80 crore and Rs 210.52 crore from the 'shirting' segment.

It reported its revenue from the apparel segment at Rs 370 crore and Rs 265.51 crore from garmenting segment.

Revenue from tools and hardware was Rs 132.33 crore and Rs 95.34 crore from the auto components.

Its real estate and development of property segment grew over three-fold to Rs 247.45 crore against Rs 81.11 crore in the September 2021 quarter.

Shares of Raymond Ltd closed 7.16 per cent up at Rs 1,257.85 apiece on BSE on Thursday.