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, with shareholders receiving 4 shares for every 5 held.

• Announced vertical demerger of real estate business into Raymond Realty Limited, to be completed in 14-16 months; shareholders to receive 1:1 share.

• Engineering business restructured, with two new subsidiaries focusing on aerospace/defense and auto components; Raymond to hold 66.3% in each.

• Real Estate and Engineering businesses delivered strong growth, with consolidated revenue up 93% year-over-year to ₹998 Cr and EBITDA up 82% to ₹162 Cr.

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

Financial highlights

• Q1 FY25 revenue at INR 998 crore, up 93% year-over-year from INR 517 crore, driven by real estate and engineering.

• EBITDA for Q1 FY25 at INR 162 crore (16.2% margin), up 82% year-over-year.

• Profit after tax from continuing operations at INR 57 crore, up 27% year-over-year.

• Net gain from discontinued operations (lifestyle demerger) at INR 7,338 crore, credited to reserves.

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

Outlook and guidance

• Real estate bookings expected to grow 20%-25% year-over-year; strong demand for residential and affordable luxury segments.

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

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

• Targeting addition of 2-4 new real estate projects annually, with GDV of INR 4,000-5,000 crore.

• Plan to add 200+ retail stores in lifestyle business in FY25, with 40% being Ethnics by Raymond.