Diversified group Raymond Ltd recently reported a multi-fold growth in consolidated net profit at Rs 1,066.74 cr in the June quarter, helped by gains from sales of its consumer business to Godrej Consumer Product Ltd (GCPL).
The leading textile and apparel maker had posted a net profit of Rs 81.93 cr during the April-June period of the previous fiscal, Raymond said in a regulatory filing. Its revenue from operations rose 2.5% to Rs 1,771.46 cr during the quarter under review as against Rs 1,728.14 cr in the year-ago period.
During the June quarter, Raymond Consumer Care Ltd (RCCL), an associate company, sold its entire business, including all brands, to GCPL on a slump sale basis for a consideration of Rs 2,825 crore. However, the manufacturing location in Aurangabad for sexual wellness products was not part of the deal.
Accordingly, Raymond’s share in the profit from the sale of RCCL’s business for the quarter ended June includes a gain of Rs 983.01 cr. Its profit excluding profit from associates and joint ventures, exceptional items and tax in the June quarter was Rs 112.46 cr, down 4.05%, from Rs 117.21 cr in the corresponding quarter a year ago.
Total expenses of the Singhania family-controlled firm were at Rs 1,714.02 cr, up 4.69% in the first quarter of FY 2023-24. The company’s total income in the June quarter was Rs 1,826.48 cr, up 4.1%. Shares of Raymond Ltd on Friday settled 0.22% lower at Rs 1,968 apiece on the BSE.
During the quarter, Raymond faced “moderate consumer sentiments in a seasonally weak quarter” and also had an “early onset of the End Of Season Sale (EOSS) in the apparel sector.” Its “residential real-estate continued to demonstrate sustained demand including high demand for luxury homes,” as per an investors’ presentation by Raymond. In the March quarter, Raymond’s revenue from the textile segment stood at Rs 688.39 cr and it was Rs 191.88 cr from the shirting segment.
“High-Value Cotton Shirting segment reported sales in the quarter at Rs 192 cr, a growth of 13% as compared to Rs 170 cr in the previous year, led by demand for our cotton offerings by our B2B customers. The segment reported an EBITDA margin of 10% for the quarter,” it said.
The apparel segment reported revenue of Rs 304.52 cr while the garmenting section recorded revenue of Rs 264.83 cr.
“Our continued focus on casualisation and premiumisation in the Branded Apparel segment enabled a topline growth of 16% along with a steady growth showcased by our Branded Textile business in comparison to the same quarter last year,” it said.
In the engineering business, Raymond’s tools & hardware business revenue stood at Rs 110.05 cr and it was Rs 99.30 cr from auto components. However, its revenue from real estate and development of property in the June quarter fell 18.43% to Rs 233.65 cr.
“During the quarter, total booking value was Rs 330 cr in overall 3 projects with 82% of total units in Ten X Habitat, nearly 87% of total units in The Address by GS project and 38% of launched units in TenX Era project which was launched in February 2023,” it said.