Raymond Lifestyle (RAYMONDLSL) Q2 24/25 earnings summary

Executive summary

• Achieved stable Q2 FY25 performance despite subdued consumer sentiment, inflationary pressures, and muted discretionary spending.

• Became a separately listed company on 5 September 2024 after demerger from Raymond Limited.

• Expanded retail network to 1,592 stores, including 129 Ethnix by Raymond outlets, with 74 new stores opened in H1 FY25.

• Launched new product categories such as Sleepz, ceremonial fabrics, and Bello Italiano, targeting large unbranded markets.

• Positioned to capture festive and wedding season demand through new launches and marketing campaigns.

Financial highlights

• Q2 FY25 total income: ₹1,735 Cr, up 39% sequentially from Q1 FY25, but down 6.2% year-over-year.

• Q2 FY25 EBITDA: ₹242 Cr (13.9% margin), up from ₹89 Cr in Q1 FY25, but down from ₹331 Cr in Q2 FY24.

• PBT before exceptional items: ₹112 Cr, down 44.8% year-over-year.

• Net profit post-exceptional items: ₹42 Cr for Q2 FY25.

• Exceptional items included ₹57 Cr stamp duty for demerger and ₹2 Cr VRS expense.

Outlook and guidance

• Optimistic for H2 FY25, expecting strong demand from festive and wedding seasons, with nearly 4.8 million weddings projected in Nov-Dec.

• Targeting 200 additional stores over the next 18 months, mainly via asset-light franchising.

• Expect reduction in net working capital and debt by year-end as sales pick up.

• No major downward revision in growth guidance for garmenting and branded apparel; positive trends seen from October onwards.