In This Article:
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Revenue: 985 crore in Q3 FY25, a growth of 36% YoY from 727 crore.
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EBITDA: 169 crore in Q3 FY25, with an EBITDA margin of 17.2%.
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Profit After Tax: 70 crore in Q3 FY25, a 71% increase from 41 crore in the previous year.
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Real Estate Revenue: 488 crore in Q3 FY25, an 11% growth from 439 crore in Q3 FY24.
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Real Estate EBITDA: 116 crore in Q3 FY25, a 19% increase from 97 crore in Q3 FY24, with an EBITDA margin of 23.8%.
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Engineering Business Revenue: 433 crore in Q3 FY25, up from 217 crore in Q3 FY24.
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Engineering Business EBITDA Margin: 12.12% in Q3 FY25, down from 13.8% in Q3 FY24.
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Net Cash Surplus: 696 crore, an increase of 194 crore since March 2024.
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Cash and Cash Equivalents: 1,582 crore as of December 31, 2024.
Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Raymond Ltd (BOM:500330) reported a strong revenue growth of 36% year-on-year in Q3 FY25, reaching 985 crore.
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The company achieved a significant increase in profit after tax from continuing operations, up by 71% compared to the previous year.
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The real estate segment showed robust performance with a booking value of 505 crore, driven by high demand in Thane and Bangalore.
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Raymond Ltd remains net debt-free with a net cash surplus of 696 crore, indicating strong financial health.
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The demerger of the real estate business is on track, with approvals received from creditors and shareholders, aiming for listing as a separate entity in the next 6 to 7 months.
Negative Points
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The engineering segment faced challenges in the export markets due to a slowdown in the European auto market and the Red Sea crisis.
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EBITA margin in the engineering business decreased to 12.12% in Q3 FY25 from 13.8% in the previous year, due to changes in product mix.
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The aerospace business experienced delays in orders due to production issues faced by a major aircraft manufacturer.
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The auto component sector showed recent softness, which may impact growth in the near term.
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Despite strong performance, the company faces mixed signals in the real estate market, with media reports suggesting potential slowdowns.
Q & A Highlights
Q: Can you share the demand environment in the engineering segment, particularly regarding order flow and growth contributors? A: Amit Agarwal, Group CFO, explained that the engineering segment has seen some recovery signs in Q4 after a challenging period. The hybrid market in Europe is growing, and Raymond is introducing new products, which should improve numbers. Long-term contracts provide order visibility, and the aerospace sector is expected to perform better with increased market share.