Raymond To Focus On Real Estate Business, Says Group CFO Amit Agarwal

Raymond Ltd. plans to focus on the real estate business and tap into the opportunities in the aerospace and defence sectors through its engineering division, according to Group Chief Financial Officer Amit Agarwal.

The company's consolidated net profit jumped 26.7% year-on-year to Rs 57 crore in the first quarter of fiscal 2025, backed by revenue from operations, which nearly doubled year-on-year. This compares to Rs 45 crore in the same period last year.

Raymond demerged its lifestyle business into Raymond Lifestyle Ltd. during the quarter. The scheme of demerger was completed on June 30.

Commenting on the performance and future growth plans, Agarwal highlighted the company's new focus on a 'build fast, sell fast, and collect fast' strategy for its real estate segment. Raymond is currently developing a 100-acre parcel in Thane and is engaged in a joint development agreement project in Bandra, Mumbai.

“We have seen an overwhelming response in sales bookings, with over Rs 600 crore in sales recorded in the first quarter. We are on track to achieve Rs 4,000 crore in sales bookings within the next 3 to 4 years,” Agarwal said.

Raymond Q1 FY25 Result Highlights (Consolidates, YoY)

• Revenue up 93% to Rs 998 crore from Rs 517 crore.

• Ebitda rose 81.6% to Rs 162 crore versus Rs 89 crore.

• Ebitda margin at 16.2% against 17.3%.

• Net profit from continuing operations rose 26.7% to Rs 57 crore vs Rs 45 crore.

Agarwal also noted significant growth potential in the company's engineering segment, particularly within the aerospace and defence industries. “There is a substantial opportunity for growth, as India currently accounts for just 1% of the $100 billion aerospace and defence market. We believe the country is poised to increase this share to 2–3%,” he said.

Raymond acquired a 59.25% stake in Maini Precision Products Ltd. last year, which specialises in engineering, automotive, electric vehicle, aerospace and defence components.

Despite a slowdown for the company in the lifestyle businesses, Agarwal remained confident that things will change for the better in the second part of the year, with weddings and festivals coming across in full scale.

"In lifestyle business, we are building on a robust long-term goal. In the first quarter, there was excessive heat and there were no weddings. People were also busy because of the election and not coming out and shopping, plus there was an inflation infection," he said.

Raymond's revenue from the lifestyle business was down by 8%, with textiles taking an 18% hit during Q1.

Commenting on the impact of the political crisis in Bangladesh on businesses, Agarwal said the company is ready to tap into any business opportunities that may come their way. 

"This crisis enables us to become much more agile, quickly adapt and get new customers," he said.

Presently, Bangladesh is the world's second-largest textile exporter, closely following China's lead, according to Bloomberg data.

Shares of Raymond Ltd. closed flat at Rs 1,936 apiece, down 0.06%, on the BSE on Wednesday. This compares to a 1.27% gain in the NSE Nifty 50.