Raymond Q4 net profit more than 4 times higher at Rs 264.97 crore
Raymond Ltd on Monday reported a more than fourfold jump in its consolidated net profit to Rs 264.97 crore for the fourth quarter ended March 2022, helped by strong demand and strong consumer confidence during the period.
The company had posted a net profit of Rs 58.36 crore during the January-March quarter of the previous fiscal year, Raymond said in a regulatory filing.
Operating income rose 43.38 percent to Rs 1,958.10 crore during the quarter under review, compared to Rs 1,365.66 crore in the corresponding period of the previous fiscal year.
Raymond posted the “highest revenue and profitability ever during the quarter,” the company said in an earnings statement.
The total cost was Rs 1,790.12 crore, an increase of 33.36 percent in Q4/FY 2021-22, compared to Rs 1,342.31 crore in the same quarter last year.
“With core brand strength and a broad distribution network across the country, Raymond benefited from vibrant demand and strong consumer sentiment during the last quarter of the financial year 2022. As work life returns to physical mode coupled with a strong wedding season , demand in our B2C businesses witnessed the growth momentum,” it said.
During the quarter, demand in international markets and robust export order momentum continued in apparel and tech companies.
Commenting on the result, Raymond Chairman & Managing Director Gautam Hari Singhania said the company delivered a very strong quarterly performance in two consecutive quarters.
“We have witnessed a demand recovery in all our businesses to pre-covid levels, and with our effective cost management, we have achieved the highest profitability for the quarter and year,” he said.
Raymond’s textile segment revenue in Q4/FY22 rose 22.66 percent to Rs 885.80 crore compared to Rs 722.10 crore in the corresponding quarter, driven by strong momentum in secondary sales, led by wedding-related purchases and higher visitor numbers in stores.
“The segment reported a robust EBITDA margin of 22.7 percent, slightly ahead of the prior year. Higher realization and operational efficiencies contributed largely to margin performance,” it said.
The turnover of the ‘Shirting’ segment increased by 31.11 percent to Rs 174.60 crore, compared to Rs 133.17 crore in Q4/FY 2021-22, driven by purchases related to the wedding season and the opening of offices.
“Growth was seen throughout the quarter across all channels, including online. The segment reported a healthy EBITDA margin of 11 percent compared to the prior year EBITDA loss,” it said.
While the revenue of ‘Clothing’ increased 59.43 percent to Rs 278.94 crore versus Rs 174.96 crore, the apparel segment increased 69.29 percent to Rs 212.65 crore versus Rs 125.61 crore, mainly driven by growth due to strong demand from existing customers in US and European markets and acquisition of new customers. “EBITDA margin for the quarter improved to 3.5%, primarily due to higher capacity utilization rates,” it said.
The turnover of Tools & Hardware was Rs 122.23 crore, an increase of 1.61 percent, against Rs 120.29 crore. Auto parts segment revenues increased 19.42 percent to Rs 82.43 crore from Rs 69.02 crore in the last fiscal quarter of January-March.
“Sales growth was mainly driven in the domestic and export markets of the US, Europe and Asia, led by ring gears, drills and bearing categories. The company reported an EBITDA of Rs 34 crore in the quarter,” it said.
The Real Estate and Development segment of real estate was up more than fivefold to Rs 321.20 crore against Rs 54.12 crore.
“The company witnessed strong growth in bookings thanks to improved demand from first home owners, overall liquidity in the market and rapid construction momentum in its projects,” said Raymond.
For the fiscal year ended March 2022, Raymond reported a consolidated net profit of Rs 265.12 crore. It had reported a net loss of Rs 303.65 crore last year.
The operating income was Rs 6,178.51 crore in 2021-22. This is 79.27 percent higher than Rs 3,446.47 crore in the same period a year ago.
Meanwhile, Raymond shared in a separate filing that, in a meeting held on Monday, his board of directors recommended the payment of a 30 percent dividend on the share capital, which is Rs 3 per share of the par value of Rs 10. for the fiscal year ending March 31, 2022.
Shares of Raymond Ltd on Monday settled at Rs 813.55 on BSE, up 5.44 percent from the previous close.
(This story was not edited by DailyExpertNews staff and was generated automatically from a syndicated feed.)
