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Raymond Q4 results: Textile major aims to expand store count to 350-400 over the next 2-3 years
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
In an interaction with CNBC-TV18, Amit Agarwal, Group CFO of Raymond, emphasised the robust performance of Raymond’s branded apparel business, which witnessed a growth of over 20% year-on-year. He attributed this growth to the strong value of the brand and strategic changes implemented in the business.
Raymond announced an 18% rise in consolidated profit after tax for the fourth quarter ended March 2024. The textile and apparel company’s consolidated profit after tax stood at ₹229 crore compared to ₹194 crore in the same quarter of the previous fiscal year, according to the financial statement.
The fourth quarter also saw a rise in consolidated net revenue, which rose by 23% to ₹2,688 crore from ₹2,192 crore in the corresponding period last fiscal.
For the entire fiscal year ending March 2024, the company reported a consolidated profit after tax of ₹1,638 crore, marking a substantial increase from ₹529 crore in the previous fiscal. Consolidated net revenue for FY24 stood at ₹9,286 crore, compared to ₹8,337 crore in FY23.
In addition to the financial results, Raymond also made announcements regarding its leadership and future plans. The company’s board approved the reappointment of Gautam Hari Singhania as Managing Director for a term of five years, effective from July 1, 2024, signaling continuity in leadership.
In an interaction with CNBC-TV18, Amit Agarwal, Group CFO of Raymond, emphasised the robust performance of Raymond’s branded apparel business, which witnessed a growth of over 20% year-on-year. He attributed this growth to the strong value of the brand and strategic changes implemented in the business.
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Agarwal also discussed Raymond’s expansion plans, particularly in retail. The company has opened over 200 new stores and aims to open another 350 to 400 stores over the next two to three years, supporting its branded apparel business. Additionally, Raymond’s Ethnix segment, which currently boasts almost 115 stores, is expected to drive growth in the lifestyle business.
Despite challenges such as the Red Sea crisis affecting shipments, Agarwal expressed confidence in Raymond’s manufacturing capabilities, citing the company’s strong order book in the garment business.
Raymond is also diversifying its revenue streams. Agarwal mentioned the revenue potential after it acquired Maini Precision Products Ltd (MPPL), estimated to be in the range of ₹450–475 crore per quarter. He outlined the growth drivers in the engineering segment, including engineering consumables, auto ancillary business, and aerospace and defence components, anticipating over 20% year-on-year growth in these areas.
Regarding future revenue projections, Agarwal refrained from giving specific guidance but highlighted the potential revenue from Raymond’s real estate assets. The company owns 100 acres of land in Thane, with a total potential value estimated at ₹25,000–30,000 crore. Agarwal estimated a revenue run rate of ₹3,500 to ₹4,000 crore per year over the next three to four years.
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