Raymond rose 3.12% to Rs 1297.10 after the company's consolidated net profit surged 198.25% to Rs 158.85 crore on 39.77% increase in net sales to Rs 2168.24 crore in Q2 September 2022 over Q2 September 2021.
On a consolidated basis, profit before tax (PBT) (before exception) surged 149% year-on-year to Rs 237 crore in Q2 FY23. EBITDA jumped 68% to Rs 358 crore. EBITDA margin rose by 287 bps to 16.3% in Q2 FY23 as against 13.5% in Q2 FY22.During the quarter, total expense jumped 32.2% to Rs 1890.78 crore. Cost of raw material consumed climbed 43.7% to Rs 460.85 crore and employee cost increased 20.3% to Rs 255.51 crore.
Net cash from operating activities stood at Rs -17.10 crore in the half year ended 30 September 2022, compared with Rs -21.55 crore in the half year ended 30 September 2021.
The company said it continued to deliver high operating performance along with profitable growth for the 4th consecutive quarter leveraging optimism in the market and improved consumer demand. Focused approach drove growth over pre-Covid levels and cost consciousness led to deliver yet another record profitable quarter.
The net debt has reduced to Rs 1,286 crore as on 30 September 2022 compared with Rs 1,310 crore in 30 June 2022 through free cash-flow generation driven by strong profitability. However, there was an increase in working capital deployment primarily in production and sales to meet strong festive and winter wedding demand in H2.
During the quarter, branded textile segment sales reported growth of 26% at Rs 912 crore versus Rs 722 crore in Q2FY22, driven by robust demand across primary channels coupled with strong secondary sales momentum at the backdrop of start of the festive season. The segment reported healthy EBITDA margin of 22.3% supported by operational efficiencies.
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In branded apparel segment, strong topline growth of 67% was reported with sales at Rs 370 crore. The segment reported EBITDA margin of 9.7% as compared to 3.4% in the previous year.
Garmenting segment reported sales in a quarter at Rs 266 crore, a growth of 25% as against Rs 212 crore in previous year, mainly driven by growth due to new customer acquisitions and high demand from existing customers in US & Europe markets. EBITDA margin for the quarter was 8.7%.
High value cotton shirting segment sales grew by 42% to Rs 211 Cr compared to Rs 148 Cr in previous year.
In the engineering business, sales grew by 4% to Rs 228 Cr as compared to Rs 219 Cr in previous year on aggregate basis. The business reported EBITDA of Rs 29 crore in the quarter.
Real estate business showcased a strong sales growth by 3x to Rs 245 crore from Rs 81 crore in previous year. The segment reported EBITDA margin of 25.8% for the quarter.
Raymond is India's largest integrated worsted suiting manufacturer that offers end-to-end solutions for fabric and garmenting. Raymond forayed into realty sector through the launch of its maiden project TenX - an 'aspirational district' spread across 14 acres housing ~3,100 residential units and has recently launched a premium residential project - The Address by GS. Raymond also has presence in FMCG sector through Raymond Consumer Care that offers wide range of products in men's personal grooming category and personal hygiene.
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