Raymond (RAYMOND) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached ₹1,101 Cr, up 115% year-over-year, driven by real estate and engineering segments, with EBITDA at ₹172 Cr and a margin of 15.6%.

• Net profit from continuing operations was ₹59 Cr, more than doubling year-over-year.

• Real estate bookings for the quarter were ₹562 Cr, with strong demand in Thane and Bandra projects and 231 units sold.

• The company remains net cash surplus with ₹685 Cr as of September 30, 2024.

• The Lifestyle business was demerged effective 30 June 2024, with a one-time gain recognized in Q2 FY25.

Financial highlights

• Q2 FY25 EBITDA was ₹172 Cr (75% YoY growth), with a margin of 15.6%.

• Real estate segment revenue grew 135% YoY to ₹571 Cr; segment EBITDA was ₹112 Cr (138% YoY), margin 19.6%.

• Engineering segment revenue was ₹443 Cr (121% YoY), with an EBITDA margin of 11.0%; MPPL contributed ₹225 Cr.

• Q2 FY25 PBT before exceptions: ₹103 Cr (42% YoY growth); margin at 9.4%.

• Interest and finance costs increased due to Maini Precision acquisition.

Outlook and guidance

• Real estate bookings expected to grow 20%-25% year-over-year, targeting ₹4,000 Cr in booking value next year, with expansion via capital-light JDA model.

• Engineering segment anticipates recovery in aerospace and short-lived weakness in auto components, with H2 expected to be better than H1.

• Multiple new project launches planned in Thane and outside in Q3 and Q4.

• Company expects to remain net cash surplus.

• Real estate business expects continued strong demand, with a total potential revenue pipeline exceeding ₹32,000 Cr.