Raymond Slides as Q4 PAT Drops 40% YoY to Rs 137 Crore

Raymond Ltd saw its share price decline by 1.29% to Rs 1,553.70 after a steep 40.17% year-on-year (YoY) decline in consolidated net profit to Rs 137.47 crore for the quarter ended March 31, 2025 (Q4 FY25), from Rs 229.79 crore in Q4 FY24.

Though profit dipped, the company registered an impressive 94.9% YoY growth in total income to Rs 601.4 crore for the quarter. But Profit Before Tax (PBT) fell 4.44% YoY to Rs 44.55 crore from Rs 46.62 crore during the corresponding quarter of the last year.

Raymond's EBITDA increased 38% YoY to Rs 99 crore, compared with Rs 72 crore in Q4 FY24. The EBITDA margin, however, declined to 16.4%, from 23.3% in the corresponding quarter last year, reflecting cost pressures or product mix change impacting profitability.

The company’s engineering segment performed notably, with revenues increasing significantly to Rs 528 crore in Q4 FY25, up from Rs 234 crore in the same quarter last year. This growth largely stems from the recent acquisition of MPPL in March 2024. However, challenges in the export market and ongoing geopolitical uncertainties continued to weigh on segment performance. The segment's margin on EBITDA at 15.3% was marginally lower than 15.8% in the corresponding period last year. The silver lining was the rebound in growth in the aerospace segment, after production bottlenecks at a leading airplane maker were resolved.

Raymond continues to be a net cash positive company, sitting on Rs 263 crore in cash as of March 31, 2025, with good liquidity.

In a significant strategic development, Raymond finalized the demerger of its real estate business Raymond Realty (RRL) with effect from May 1, 2025. The record date for issuing equity shares of RRL to Raymond shareholders has been set as May 14, 2025. As per the scheme of arrangement approved by the shareholders, Raymond Limited shareholders will get one equity share of Raymond Realty for each share held, making RRL an independent pure-play real estate company.

The real estate business division reported strong financials during Q4 FY25, with revenues increasing 13% YoY to Rs 766 crore from Rs 677 crore in Q4 FY24. EBITDA for the business segment increased to Rs 194 crore from Rs 171 crore, while the EBITDA margin improved to 25.3%. The company attributed this performance to effective execution and early completion of projects, further strengthening customer confidence and brand credibility.

Raymond Realty consolidated its growth pipeline additionally with two fresh Joint Development Arrangements (JDAs) at Mahim and Wadala, that combined have a Gross Development Value (GDV) of Rs 6,800 crore. The additions extend the company's real estate horizon to Rs 40,000 crore inclusive of Rs 25,000 crore from its land holding at Thane and Rs 14,000 crore from JDA-driven developments.

In Q4 FY25, Raymond Realty posted a robust booking value of Rs 636 crore, led by robust demand for high-end projects like The Address by GS 2.0, Invictus, and Park Avenue High Street Retail in Thane, and The Address by GS at Bandra under JDA ventures.

The real estate business has also transformed into a net cash surplus company, ending Q4 FY25 with a cash buffer of Rs 399 crore. The segment's healthy financials and increasing market footprint reflect Raymond Realty's vision of being a top developer in the Mumbai Metropolitan Region (MMR).

Speaking on the quarterly performance and the demerger, Gautam Hari Singhania, Chairman and Managing Director, Raymond Limited, stated, "We are pleased to announce the demerger of our real estate business, which will be listed in Q2 FY26. The strategic demerger reflects our intent to achieve sustainable growth through disciplined business operations and seeks to release higher shareholder value".

He went on to say, "Our growth via the JDA model continues unabated with two additional JDAs signed at Mahim and Wadala, taking our total number of projects outside the Thane land parcel to six. From an engineering perspective, we are upbeat about FY26, especially with growth opportunities in the aerospace segment. We are well placed to take advantage of the same and bring consistent stakeholder value".

Raymond Group, with a rich heritage of 1925, started its journey as a pioneer in textile manufacturing. Through the years, it has diversified its presence into engineering and real estate businesses. Moving forward, the engineering division is a dynamic leader in producing files and hand tools for domestic as well as global markets, and Raymond Realty has emerged a well-known name among homebuyers in the MMR catchment.

As the firm enters FY26, its strategic demergers, JDA-led real estate growth, and engineered growth in specific areas of business indicate a conscious shift towards niche and sustainable business models that promise long-term success.