Raymond Q3 Results: Net Profit Drops 61%, Boosted by Real Estate
Raymond Ltd. reported a 61% year-on-year drop in net profit to ₹72.3 crore for the third quarter of FY25, despite a 40.6% increase in revenue from operations, driven by the real estate segment.
Raymond LtdQ3 ResultsReal EstateNet ProfitRevenue GrowthReal EstateJan 29, 2025
announced its financial results for the third quarter of the fiscal year 2025 (Q3 FY25) on January 29.
The company reported a significant 61% year-on-year (YoY) decline in net profit, which stood at ₹72.3 crore for the quarter ending December 31, 2024.
This is in stark contrast to the net profit of ₹185.4 crore reported in the same quarter of the previous fiscal year.
The drop in profit is partly attributed to the demerger of the Lifestyle business as a separate listed entity, which was included in the base quarter.
Despite the decline in net profit, Raymond’s revenue from operations surged by 40.6% to ₹953.9 crore, compared to ₹678.5 crore in the year-ago quarter.
This impressive growth was largely driven by the real estate segment.
At the operating level, Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) saw a robust increase of 75.3% to ₹138 crore, up from ₹78.8 crore in the corresponding period of the previous fiscal year.
The EBITDA margin improved to 14.5% in the reporting quarter, from 11.6% in the same period last year.
Raymond continued its growth momentum in Q3 FY25, with consolidated revenue from its real estate and engineering businesses reaching ₹985 crore, reflecting a 36% YoY increase.
The real estate business alone generated a revenue of ₹488 crore, marking an 11% YoY growth.
The segment also achieved a booking value of ₹505 crore, primarily driven by the strong demand for projects such as The Address by GS 2.0 and TenX ERA.
The segment’s EBITDA stood at ₹116 crore, with an improved margin of 23.8%, reflecting an improvement of approximately 160 basis points (bps) compared to 22.1% in Q3 FY24.
Raymond’s engineering business, which includes the impact of the MPPL acquisition, generated ₹433 crore in revenue.
However, the auto components and engineering consumable sectors faced challenges due to weak export demand and geopolitical issues.
As a result, the EBITDA margin for this business declined to 12%, down from 13.8% in Q3 FY24.
Despite these challenges, Raymond remains a net cash surplus company, with ₹696 crore available for future growth and expansion.
The company’s total potential revenue from its real estate segment is estimated to exceed ₹32,000 crore, with significant contributions expected from its land parcel in Thane and several joint development agreements.
The market reacted positively to these results, with shares of Raymond Ltd.
closing at ₹1,507.25, up by ₹46.45, or 3.18%, on the BSE.
About Raymond Ltd.
Raymond Ltd.
is a leading player in the textiles and apparel industry, known for its high-quality suiting, shirting, and other fashion products.
The company has diversified its portfolio to include real estate and engineering businesses, which have become significant contributors to its revenue growth.
With a strong financial position and a focus on innovation, Raymond is well-positioned to navigate the challenges and capitalize on new opportunities in the market.
Frequently Asked Questions
What was Raymond's net profit in Q3 FY25?
Raymond's net profit in Q3 FY25 was ₹72.3 crore, a 61% drop from ₹185.4 crore in the corresponding quarter of the previous fiscal year.
How much did Raymond's revenue from operations grow in Q3 FY25?
Raymond's revenue from operations grew by 40.6% to ₹953.9 crore in Q3 FY25, compared to ₹678.5 crore in the year-ago quarter.
Which segment primarily drove the revenue growth for Raymond in Q3 FY25?
The real estate segment primarily drove the revenue growth for Raymond in Q3 FY25, contributing significantly to the overall 40.6% increase in revenue.
What is the EBITDA margin for Raymond's real estate segment in Q3 FY25?
The EBITDA margin for Raymond's real estate segment in Q3 FY25 was 23.8%, reflecting an improvement of approximately 160 basis points compared to 22.1% in Q3 FY24.
How did the market react to Raymond's Q3 FY25 results?
The market reacted positively to Raymond's Q3 FY25 results, with shares of Raymond Ltd. closing at ₹1,507.25, up by ₹46.45, or 3.18%, on the BSE.
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