Raymond CFO Foresees Real Estate, Engineering Divisions To Contribute 45% To Revenues By FY29
Raymond Ltd. is aiming for a more significant contribution from its real estate and engineering divisions in its financial structure. The company expects the real estate and engineering division to contribute up to 45% to the group's revenues over the next four-to-five years, according to Chief Financial Officer Amit Agarwal.
The company's strategic plans align with the company's focus on the lucrative real estate sector. Projects in Thane and Mumbai hold substantial revenue potential.
In the fiscal year ending March 2023, real estate contributed 13% to revenues, rising to 17% in the subsequent fiscal year. Conversely, the textile business saw a decline from 77% to 74%, while the engineering business maintained a steady share of 9–10%.
Raymond owns a 100-acre plot in Thane, with roughly 4.5 million square feet already sold, generating approximately Rs 9,000 crore. An additional Rs 25,000 crore is expected from the remaining 60 acres over seven-to-eight years, with plans for projects in Bandra, Mahim, and Sion.
Over the next three to four years, 40–45% of real estate revenue will derive from joint development agreements, and 50–55% from the Thane project. Agarwal anticipates JDAs to yield Rs 8,000–10,000 crore by March 2024. The company expects real estate to contribute 25-30% to the group's revenue.
The engineering segment is set for growth, especially post the acquisition of Maini Precision and Agarwal projects, aiming to contribute 12–15% to the group's revenue, a substantial increase from its current share. Despite global market challenges, resilient domestic demand buoyed the segment.
Regarding the Lifestyle Business, Raymond plans to expand its branded apparel stores, with over 500 stores expected in the next three years. Agarwal forecasts mid-teens growth in revenue and high-teens growth in the operating income over the next three-to-four years.
Raymond's shares ended 1% lower at Rs 2,528.90 apiece, compared to a little change in the country's benchmark NSE Nifty 50. The stock has advanced by 55% in the past 12 months.
Watch the full interview here:
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
