Raymond Ltd shares rose on Tuesday after the company reported strong second-quarter results on the back of substantial gains in its real estate and engineering businesses.
Raymond shares opened the trading with a gain of 2.7% at Rs 1,735.45 on the National Stock Exchange. Over the past 12 months, Raymond shares have declined by roughly 10%, compared with Nifty’s 23% rise.
To be sure, the company’s consolidated net profit for the quarter surged over 100% year-on-year (YoY) to Rs 59 crore for Q2 FY25, while total revenue from operations more than doubled to Rs 1,044.7 crore.
At the same time, the company’s earnings before interest, tax, depreciation, and amortization (EBITDA) also climbed 100% YoY to Rs 116 crore, although the EBITDA margin edged down to 11.1% from 11.9% a year earlier.
Revenue from Raymond’s real estate division jumped 135% YoY to Rs 571 crore, supported by strong sales and successful project launches, including “Park Avenue – High Street Reimagined” in Thane, which added to Raymond Realty’s residential project portfolio.
The engineering segment reported a 121% YoY revenue increase to Rs 443 crore, with strong domestic demand for products like flex plates and ring gears, though export sales were hampered by geopolitical issues.
Chairman and Managing Director Gautam Hari Singhania attributed the performance to strong project execution and demand in core segments, adding that the company remained focused on delivering projects ahead of regulatory timelines.
Mumbai-headquartered Raymond is the world’s largest integrated fabric manufacturer, holding over 60% market share in India’s suiting segment. The company is also the country’s leading producer of woolen fabrics. It expanded into the real estate sector in 2009.
The company, which has Rs 685 crore in net cash, is now looking at expansion opportunities in these high-growth areas.
