Raymond Limited

NSE:RAYMOND
Q2 FY2024
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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In Q2 FY24, Raymond Limited reported impressive financial results, achieving a revenue of ₹2,321 crores, marking a 27% increase quarter-on-quarter and a 6% rise year-on-year. The company recorded its highest-ever quarterly EBITDA at ₹382 crores, with a robust margin of 16.5%, reflecting a 52% growth from the previous quarter. Net profit stood at ₹160 crores, slightly up from ₹159 crores in the same quarter last year. Key segments contributing to this performance included branded apparel and garmenting, with revenues of ₹437 crores and ₹312 crores respectively, both showing an 18% growth. These results highlight Raymond's strong market position and operational efficiency despite facing challenges

In Q2 FY24, Raymond Limited's real estate segment demonstrated exceptional performance, launching new projects in Thane with a potential revenue of over ₹2,000 crores. The company achieved a total booking value exceeding ₹650 crores during the quarter, doubling the booking value compared to the same period last year. Notably, over 40% of the launch inventory was sold, and more than 85% of units in the initial two Thane projects were sold out. With approximately 100 acres of land in Thane, including 40 acres under development, Raymond is well-positioned for future growth in the real estate market.

Raymond Limited is implementing several growth strategies in its branded apparel segment to enhance market presence and drive sales. Key initiatives include the introduction of distinct product offerings, particularly a new seasonal collection that emphasizes casual wear and premiumization. The company is also expanding its retail footprint by opening 63 new stores during the quarter, focusing on both exclusive brand outlets (EBOs) and multi-brand outlets (MBOs). This expansion aims to increase brand reach across metro and tiered cities in India. Additionally, Raymond is enhancing operational efficiency, which has contributed to improved EBITDA margins, rising from 9.7% to 12.2% year-on-year. These strategies collectively position Raymond for sustained growth in the competitive branded apparel market.

During the earnings conference call on November 9, 2023, Raymond Limited highlighted several key achievements and strategic initiatives. The company celebrated its 9th consecutive quarter of record revenue and EBITDA performance, reporting a revenue of ₹2,321 crores and an EBITDA of ₹382 crores with a margin of 16.5%. Notably, Raymond opened 63 new stores, enhancing its retail footprint across India. The company is also expanding its garmenting capacity by one-third to capitalize on global market trends and has launched new projects in Thane with a potential revenue of over ₹2,000 crores. Despite facing challenges such as subdued consumer demand and inflationary pressures, Raymond remains focused on operational efficiency and premiumization strategies to drive future growth

Raymond Limited is addressing challenges in its engineering business, particularly amid sluggish export markets, by focusing on strategic acquisitions and market expansion. The company has acquired Maini Precision, enhancing its presence in the automotive sector and entering emerging markets such as aerospace, defense, and electric vehicle components. This move aims to consolidate its market position and improve overall margins. Despite facing a decline in sales to ₹201 crores from ₹228 crores year-on-year, Raymond maintained a stable EBITDA margin of 12.7%. The emphasis on operational efficiency and diversification into high-growth sectors positions Raymond to navigate current market challenges effectively.

Inflation and subdued consumer demand significantly impacted Raymond Limited's performance in the second quarter of 2023. The company faced challenges due to inflationary pressures and higher commodity prices, which led to reduced discretionary spending among consumers. Additionally, the timing of festivals and weddings was affected by the Hindu calendar, delaying sales until later in the year. Despite these challenges, Raymond reported a revenue of ₹2,321 crores, reflecting a 27% quarter-on-quarter growth and a 6% year-on-year increase, showcasing resilience in its branded apparel and garmenting segments. The company is focusing on operational efficiency and premiumization strategies to mitigate these challenges moving forward.