MUMBAI:
Raymond Limited today announced its financial results for the quarter ended 30 th September, 2021
Key highlights of the quarter
Consolidated revenue doubles to Rs. 1,583 Cr in Q2FY22 from Rs. 732 Cr in Q2FY21
Consolidated EBITDA margin of 13.4% higher than pre-covid levels of 12.4% in Q2FY20 Continued focused approach on optimizing operating expenses resulted in controlling costs during the quarter. The increase in opex from Rs. 304 Cr in Q2FY21 to Rs. 424 Cr in Q2FY22 is primarily due to doubling of revenues
Net Profit at Rs. 53 Cr for the quarter
Focused control on opex cost as well as working capital management led to free cash flow generation in Q2FY22 resulting in net debt reduction by Rs. 53 Cr from Rs. 1,617 Cr as on 30 th June, 2021 to Rs. 1,564 Cr as on 30 th September, 2021
Liquidity maintained at ~Rs. 650 Cr (cash & cash equivalents) as on 30 th September, 2021
Commenting on the quarter performance, Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said, “All our businesses have performed well in the second quarter. The consumer facing businesses are witnessing strong resurgence of demand and we witnessed an uptick on a week on week basis during the quarter. With the onset of festive and wedding season, the consumer sentiment is upbeat primarily due to large scale vaccination drive across the country.
With the opening up of global economy, there is an impetus on our Garmenting export business that continues to perform well with a healthy order book. Engineering businesses comprising of Tools & Hardware and Auto Components have achieved the significant milestone in terms of highest sales ever in a quarter with strong growth in exports market and well supported by sustained growth in domestic market. Our Real Estate business is on fast track with rapid construction and new bookings momentum with upcoming offerings both in residential and commercial space. With festive and wedding season buoyancy in H2 of this financial year, we are optimistic that the industry is on track for a strong revival.”
Branded Textile segment sales reported strong growth of 214% to Rs. 722 Cr vs Rs. 230 Cr in previous year. The growth was driven due to improvement in both primary sales as well as secondary sales. There was gradual pickup in primary sales from August onwards catering to upcoming festive demand and wedding season. The growth in secondary sales was led by improvement in consumer sentiments post gradual unlocking, leading to increasing footfalls in retail outlets. The segment reported healthy EBITDA margin of 16.8% mainly driven by operational efficiencies.
Branded Apparel segment recorded sales growth by 211% to Rs. 221 Cr vs Rs. 71 Cr during Q2 of previous year. The strong growth was witnessed across all channels and our EBO and LFS channels observed higher traction with opening of the malls. Another highlight was the robust growth of the online channel that grew by 70% vs. previous year. The segment reported EBITDA margin of 3.4% mainly due to lower discounting and continued operational efficiencies
Retail Operations:
~100% of our retail network of 1,420 stores operational as on 30 th September, 2021
The Raymond Shop (TRS) network witnessed 90%+ recovery on LTL basis and ~20% growth in average transaction value (ATV) vs. pre-covid levels
Garmenting segment sales grew by 13% to Rs. 212 Cr compared to Rs. 187 cr in previous year, mainly due to growth in bulk business from US & UK retail markets along with gradual opening up of Europe market. EBITDA margin for the quarter improved to 10.3% due to better product
mix High Value Cotton Shirting segment sales grew by 349% to Rs. 148 Cr compared to Rs. 33 Cr in previous year, led by higher fabric sales in domestic markets and yarn sales. The segment reported strong EBITDA margin of 17.4% for the quarter due to better product mix.
Tools & Hardware segment achieved the significant milestone of highest sales in the history in a quarter. The sales grew by 38% to Rs. 138 Cr as compared to Rs. 100 Cr in previous year. Sales mainly driven by strong growth in LATAM markets in files category and growth in domestic
market led by cutting tools category. The segment reported healthy EBITDA margin of 13.4% for the quarter despite increase in steel prices which was partly offset by improvement in product and geography mix as well as operational efficiencies.
Auto Components segment achieved the significant milestone of highest sales in the history in a quarter. The sales reported strong growth of 66% to Rs. 81 Cr as compared to Rs. 49 cr in previous year. Strong growth in exports mainly in US region and domestic markets in ring gears category driven by significant increase in demand for automobiles. The segment reported strong EBITDA margin for the quarter of 19.0% despite increase in raw material price which was partly offset by higher productivity and efficiencies.
Real Estate segment sales grew by 327% to Rs. 81 cr from Rs. 19 Cr in previous year. The business witnessed encouraging demand and maintained good momentum in the bookings driven by continued fast paced construction activity in all ten towers of the project and sustained
lower home loan interest rates. Overall, received 107 bookings in Q2FY22 resulting in total 1,555 units booked (~74% of total inventory launched) till Sep-2021 with a booking value of Rs. 1,494 Cr
