Raymond Limited
REVENUE: ₹2,321 CRORES
Revenue: ₹2,321 crores (27% QoQ, 6% YoY)
EBITDA: ₹382 CRORES
EBITDA: ₹382 crores (52% QoQ, 7% YoY)
NET PROFIT: ₹160
Net Profit: ₹160 crores (1% YoY, 11% excluding exceptional items)
BRANDED APPAREL GROWTH:
Branded Apparel Growth: 18% YoY to ₹437 crores
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Financial Performance
Raymond reported revenue of ₹2,321 crores in the 2nd Quarter of Fiscal '24 with a growth of 27% on a quarter-on-quarter basis.
This indicates a strong recovery and growth trajectory despite the challenging market conditions.
We recorded the highest ever quarterly EBITDA of ₹382 crores with a healthy EBITDA margin of 16.5%.
This reflects operational efficiency and strong cost management amidst inflationary pressures.
Excluding the exceptional item, the net profit would have been ₹177 crores, which is an 11% growth over the 2nd Quarter of the previous year.
This highlights the company's ability to maintain profitability despite challenges.
Business Operations
The branded apparel segment showed a very healthy sales growth of 18% to ₹437 crores.
This growth is driven by distinct product offerings and an expanded retail footprint.
We continue to strengthen our retail footprint by opening 63 new stores during the quarter.
This expansion is crucial for increasing brand visibility and market share.
Growth Initiatives
We have rolled out about 100 stores in the first half of the year across metro Tier-I to Tier-IV towns.
This indicates a strong commitment to increasing market penetration and brand reach.
We are expanding our garmenting capacity by about one third to take advantage of the China Plus One strategy.
This strategic move aligns with global trends and positions Raymond favorably in the market.
Market Dynamics
The quarter witnessed subdued consumer demand and seasonality, primarily due to inflationary pressures.
This highlights the challenging market environment impacting discretionary spending.
Future Outlook
We continue to acquire new customers and are getting increased size of orders from our existing customers.
This suggests a positive outlook for future sales growth and customer retention.
The sales in the engineering consumer category continued to be impacted by the existing sluggish export markets.
This indicates ongoing challenges in the engineering segment that could affect overall performance.