Diversified group Raymond Ltd on Friday reported a multi-fold growth in consolidated net profit at Rs 1,066.74 crore in the June quarter, helped by gains from sales of its consumer business to Godrej Consumer Product Ltd (GCPL).
The leading textile and apparel maker had posted a net profit of Rs 81.93 crore during the April-June period of the previous fiscal, Raymond said in a regulatory filing.
Its revenue from operations rose 2.5 per cent to Rs 1,771.46 crore during the quarter under review as against Rs 1,728.14 crore in the year-ago period.
During the June quarter, Raymond Consumer Care Ltd (RCCL), an associate company, sold its entire business, including all brands, to GCPL on a slump sale basis for a consideration of Rs 2,825 crore. However, the manufacturing location in Aurangabad for sexual wellness products was not part of the deal.
Accordingly, Raymond's share in the profit from the sale of RCCL's business for the quarter ended June includes a gain of Rs 983.01 crore.
Its profit excluding profit from associates and joint ventures, exceptional items and tax in the June quarter was Rs 112.46 crore, down 4.05 per cent, from Rs 117.21 crore in the corresponding quarter a year ago.
Total expenses of the Singhania family-controlled firm were at Rs 1,714.02 crore, up 4.69 per cent in the first quarter of FY2023-24.
The company's total income in the June quarter was Rs 1,826.48 crore, up 4.1 per cent.
During the quarter, Raymond faced "moderate consumer sentiments in a seasonally weak quarter" and also had an "early onset of the End Of Season Sale (EOSS) in the apparel sector."
Its "residential real-estate continued to demonstrate sustained demand including high demand for luxury homes," as per an investors' presentation by Raymond.
In the March quarter, Raymond's revenue from the textile segment stood at Rs 688.39 crore and it was Rs 191.88 crore from the shirting segment.
"High-Value Cotton Shirting segment reported sales in the quarter at Rs 192 crore, a growth of 13 per cent as compared to Rs 170 crore in the previous year, led by demand for our cotton offerings by our B2B customers. The segment reported an EBITDA margin of 10 per cent for the quarter," it said.
The apparel segment reported a revenue of Rs 304.52 crore while garmenting section recorded a revenue of Rs 264.83 crore.
"Our continued focus on casualisation and premiumisation in the Branded Apparel segment enabled a topline growth of 16 per cent along with a steady growth showcased by our Branded Textile business in comparison to the same quarter last year," it said.
In the engineering business, Raymond's tools & hardware business revenue stood at Rs 110.05 crore and it was Rs 99.30 crore from auto components.
However, its revenue from real estate and development of property in the June quarter fell 18.43 per cent to Rs 233.65 crore.
"During the quarter, total booking value was Rs 330 crore in overall 3 projects with 82 per cent of total units in Ten X Habitat, nearly 87 per cent of total units in The Address by GS project and 38 per cent of launched units in TenX Era project which was launched in February 2023," it said.
Shares of Raymond Ltd on Friday settled 0.22 per cent lower at Rs 1,968 apiece on the BSE.