India's Raymond Q3 profit jumps on branded apparel, realty boost

Raymond

01/02/2024 09:53

BENGALURU, Feb 1 (Reuters) - Indian conglomerate Raymond
 RYMD.NS  reported a third-quarter profit jump on Thursday, as
healthy demand for its high-margin branded apparel and real
estate offerings outweighed a rise in costs. 
    The company's consolidated profit after tax nearly doubled
to 1.84 billion rupees ($22 million) in the three months to Dec.
31, it said in an exchange filing. 
    Shares of the company were up 1% after the results. 
    Raymond, which has multiple businesses, including selling
denim wear and luxury homes, said its net revenue grew 11% in
the December quarter, matching an 11% rise in total expenses.
    A two-fold revenue growth in the real estate and property
development segment, and a 20% increase in both branded apparel
and auto components helped the company counter flatness in its
mainstay - textiles.   
    Raymond plans to open more than 500 stores in the next 3
years, on top of the more than 1,400 stores it runs across the
country, managing director and chairman Gautam Hari Singhania,
said.
    Last year, in a major restructuring, the company sold its
consumer line to Godrej Consumer  GOCP.NS  and announced a foray
into aerospace, defense and electric vehicles businesses, while
adding heft to its engineering segment. 
    Peer retailer Arvind  ARVN.NS  posted a quarterly profit
earlier this week, as lower costs more than offset a drop in
revenue. 

($1 = 82.9799 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Sherry
Jacob-Phillips and Mrigank Dhaniwala)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))