Raymond Lifestyle (RAYMONDLSL) Q4 22/23 earnings summary

Executive summary

• FY23 revenue from operations was ₹62,173.03 lakh and net profit was ₹3,602.03 lakh; both exceeded FY22 levels of ₹52,174.41 lakh and ₹1,442.30 lakh, respectively.

• Strategic changes approved after year-end include a proposed sale of the FMCG business and a scheme to bring Raymond Limited’s lifestyle business under a simplified structure.

Financial highlights

• Revenue from operations: ₹62,173.03 lakh in FY23 vs ₹52,174.41 lakh in FY22; total income was ₹62,604.70 lakh vs ₹52,427.31 lakh.

• Profit before tax was ₹4,840.32 lakh vs ₹1,845.48 lakh; net profit was ₹3,602.03 lakh vs ₹1,442.30 lakh.

• Total comprehensive income was ₹3,534.58 lakh vs ₹1,438.96 lakh; FY23 included a ₹137.69 lakh reversal of employee stock-option expense.

• Exceptional items included a ₹645 lakh vendor-claim settlement in FY22 relating to one-time losses; no exceptional item was recorded in FY23.

Outlook and guidance

• The proposed ₹282,500 lakh slump sale covers the FMCG business and brands, excluding the Aurangabad sexual-wellness manufacturing unit; the Business Transfer Agreement was in process after approval.

• The approved composite scheme would demerge Raymond Limited’s lifestyle business and strategic investment in Ray Global Consumer Trading Limited into the lifestyle structure; implementation is subject to required approvals.

• The scheme is intended to create operational synergies and achieve zero net debt for the lifestyle business.