Real Estate Drives Growth for Raymond Ltd in Q2

Raymond Ltd has reported a remarkable 112% year-on-year (YoY) increase in net profits for the second quarter, with gains largely attributed to robust performances in its real estate and engineering divisions. Consolidated net profit reached Rs 59 crore, doubling from Rs 27.8 crore in the same period last year. Revenue from operations surged to Rs 1,044.7 crore, marking a significant leap from Rs 470 crore, while EBITDA rose to Rs 116 crore, up from Rs 55.8 crore. Despite this growth, the EBITDA margin dipped marginally to 11.1%, down from 11.9% a year earlier, a shift reflecting the company’s reinvestment in its high-growth segments.

The driving force behind Raymond’s performance is its real estate division, which has emerged as a pivotal contributor to overall revenue. The real estate segment alone generated Rs 571 crore, recording a staggering 135% growth YoY. Gautam Hari Singhania, Chairman and Managing Director, credits the success of this division to the company’s focused project execution, which he noted as “our USP,” especially with the timely launch of landmark initiatives like Park Avenue – High Street Reimagined in Thane. This innovative retail concept aims to elevate Raymond Realty’s residential offerings, drawing a steady influx of interest and investment. Total sales in the real estate sector amounted to Rs 562 crore for the quarter, while EBITDA for the segment soared to Rs 112 crore, more than doubling from the previous year.

Raymond’s engineering business also experienced notable growth, achieving a revenue of Rs 443 crore, up by 121% YoY, and maintaining an EBITDA margin of 11%. The demand for flex plates, ring gears, and shaft bearings in the domestic market has been instrumental in this performance. However, exports faced some hurdles due to current geopolitical issues and declining global demand. This balanced growth across multiple segments demonstrates Raymond’s strategic approach in navigating both domestic demand and international challenges to sustain its revenue stream.

In line with its long-term strategy, Raymond Ltd continues to focus on sustainable development within the real estate sector. With increased attention to environmentally responsible practices, including energy-efficient construction and community-focused urban planning, the company aligns economic growth with sustainability goals. This approach not only strengthens its market position but also resonates with the growing consumer demand for eco-friendly living spaces. As Raymond Ltd drives forward with significant growth in Q2, its commitment to quality project execution and sustainable business practices sets a progressive course for the company’s future.