India's Raymond Q4 profit jumps 18% on strong real-estate demand

Raymond

03/05/2024 09:21

BENGALURU, May 3 (Reuters) - Indian conglomerate Raymond
 RYMD.NS  reported an 18% rise in fourth-quarter profit on
Friday, buoyed by strong demand for its real-estate segment. 
    The company, which sells clothes to luxury homes, said its
consolidated profit rose to 2.29 billion rupees ($27.5
million)in the three months to March 31, compared with 1.94
billion rupees a year ago.
    Its revenue from operations rose 21% in the quarter.
    Its real estate segment saw strong booking momentum during
the quarter, particularly post the launch of its first joint
development project in Bandra, Mumbai.
    The segment accounts for 25% of the revenue mix and its
revenue more than doubled during the quarter.
    However, demand for consumer goods in Indian cities has
largely weathered a broader slowdown, while rural inflation-hit
consumers are cutting back on expenses.
    Analysts expect an uptick in demand in coming quarters.
    Its textile segment, biggest in terms of revenue
contribution, saw a moderated 2% growth in revenue amid muted
customer demand and challenging market conditions.
    The conglomerate's earnings before interest, taxes,
depreciation and amortization (EBITDA) margin expanded to 19.2%
from 17.3% an year ago.
    During the quarter, Raymond completed the acquisition of
Maini Precision Product  MAIP.NS  to foray into aerospace,
defense and electrical vehicle components business.
    Post consolidation, Raymond aims to set up two units, one of
which will focus on aerospace and defense, while the other will
cater to the auto components with EV and engineering consumables
sector.
    The company also re-appointed Gautam Hari Singhania as
managing director for a term of five years effective from July
1, 2024.
    

($1 = 83.3860 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Rashmi Aich)
 ((AshnaTeresa.Britto@thomsonreuters.com;))