Raymond Ltd. reported a sharp decline in consolidated net profit for the June quarter as the year-ago period was boosted by a one-time gain from discontinued operations. Excluding that high base, the company's underlying business delivered a stronger performance, supported by double-digit revenue growth and improved operating margins.
The company posted a consolidated net profit of Rs 21 crore for the quarter ended June, compared with Rs 5,325 crore a year earlier. The year-ago quarter had included an exceptional profit of Rs 5,307 crore from discontinued operations, making the comparison unfavourable.
Revenue from operations rose 15.5% year-on-year to Rs 605.6 crore from Rs 524.3 crore, reflecting healthy business momentum during the quarter.
Operating performance also improved, with earnings before interest, tax, depreciation and amortisation (EBITDA) increasing 37.4% to Rs 77 crore from Rs 56 crore in the year-ago period.
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EBITDA margin expanded by 210 basis points to 12.8% from 10.7% a year earlier, indicating better operating efficiency despite a challenging demand environment.
The sharp decline in reported profit was largely accounting-driven because of the absence of last year's exceptional gain, while the underlying business delivered higher sales and stronger operating profitability.
Investors are likely to focus on the company's margin trajectory and revenue growth, which suggest continued improvement in its core operations despite the headline decline in earnings.
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