Raymond (RAYMOND) Q1 24/25 earnings summary

Executive summary

• Completed demerger of Lifestyle business as of June 30, 2024; listing of Raymond Lifestyle Limited expected in Q2 FY25; shareholders to receive 4 shares for every 5 held.

• Initiated vertical demerger of Real Estate business; Raymond Realty Limited to be listed separately pending approvals; shareholders to receive 1 share for every 1 held.

• Acquisition of Maini Precision Products Limited (MPPL) completed, consolidating engineering business performance from Q1 FY25 and expanding into aerospace, defense, and EV components.

• Real Estate and Engineering businesses now form the core of the group post-demerger, delivering strong growth.

• Real Estate bookings reached ₹611 Cr, up 85% YoY, driven by strong demand and new launches.

Financial highlights

• Q1 FY25 consolidated revenue at ₹998 Cr, up 93% year-on-year, led by Real Estate and Engineering.

• EBITDA for Q1 FY25 at ₹162 Cr, up 82% year-on-year; EBITDA margin at 16.2%.

• Profit after tax from continuing operations at ₹57 Cr, up 27% year-on-year.

• Profit from discontinued operations (Lifestyle demerger) at ₹7,310 Cr.

• Net cash surplus of ₹618 Cr as of June 30, 2024; gross debt at ₹870 Cr.

Outlook and guidance

• Real Estate bookings expected to grow 20%-25% year-on-year, with expansion via joint development agreements and a GDV pipeline of ₹4,000-5,000 Cr.

• Engineering segment to see growth in auto ancillary, aerospace, defense, and EV components, leveraging MPPL acquisition.

• Lifestyle business expected to recover in H2 FY25 due to a strong wedding and festive season.

• Plan to add 200+ retail stores in Lifestyle business in FY25, with 40% being ethnics stores.

• Group expects to remain net cash surplus.