Raymond, one of India’s largest integrated worsted suiting manufacturers,has been continuously witnessing a momentum of strong growth.
Following record performances in the H2 of FY ’22, the first quarter of FY ’23too has seen the company come up with highest Q1 revenue and profitability in last 10 years.
The revenue touchedRs. 1,754 crore year-on-year at an astounding growth of 104 per cent in the quarter.The same rose by 19 per cent when compared to the same period in the pre-pandemic period.
Capitalising on market buoyancy and strong wedding demand, along with expansive distribution, helped propel sales.Consequently, B2C businesses continue to grow with sustained sentiments and strong consumption across markets.
In Q1,Raymond’s branded textile segment sales reported strong growth of 129 per cent at Rs. 648 crore, while the same was Rs. 283 crore in the same period of the previous fiscal.
The topline was 8 per cent higher than pre-COVID levels of Q1, FY ’20 as well.
The retail stores saw higher footfalls with consumers contributing to incremental spends. The segment reported robust EBITDA margin of 17.6 per cent, driven mainly by enhanced operational efficiencies.
In the branded apparel segment, the surging consumer demand for company’s brands integral to wedding-season-related purchases propelled sales to Rs. 262 crore in the current quarter.
The growth was witnessed across all channels, including online, during the quarter. The segment reported EBITDA margin of 5.6 per cent as compared to EBITDA loss in the previous year.
Raymond Ltd.’s garmenting segment reported Q1 sales of Rs. 247 crore at a robust growth of 153 per cent. This was mainly driven by high demand from existing customers in the US and Europe markets and new customer acquisitions.
The company said in a statement that garmenting business demonstrated resilience with a strong order book. The sustained demand from home buyers contributed to its real estate business with diverse product offerings.
The statement further added that Q1 witnessed temporarily high inventory on account of higher production to address the upcoming festival and wedding season sales. This led to increase in working capital resulting in an increase in net debt by Rs. 222 crore to Rs. 1,310 crore. However, the company said that it will continue with its debt reduction plans and the current net debt will be further reduced in the current financial year.
Gautam Hari Singhania, CMD, Raymond Limited, said “At Raymond, our continued focus on operating and financial parameters across businesses, supported by expansive network, quality products and services led to highest first quarterly revenue and profitability. The growing demand in both domestic and international markets, along with new customer acquisitions in international markets, has been rewarding for the quarter.”