Raymond slumped 10.11% to Rs 1,376.70 after the company's consolidated net profit fell 5% to Rs 94.84 crore in Q3 FY23 as against Rs 100.28 crore in Q3 FY22.
Net revenue from operations increased 17.62% YoY to Rs 2168.16 crore in the quarter ended 31 December 2022.On a consolidated basis, profit before tax (PBT) (before exception) rose 17.12% YoY to Rs 217.20 crore in Q3 FY23. EBITDA grew 16% YoY to Rs 351 crore while EBITDA margin slipped by 26 bps to 15.9% in Q3 FY23 as against 16.2% in Q3 FY22.
The net debt reduced to Rs 932 crore as on 31 December 2022 as compared to Rs 1,286 crore as on 30 September 2022 through free cash-flow generation driven by strong profitability and working capital optimisation.
The company said it continued to leverage positive sentiments and improved consumption in domestic markets through our wide-spread retail network and reported highest ever revenues in the quarter. The strong festive season witnessed a higher average transaction value by 24% in 'The Raymond Shop' (TRS) network as against previous year. Focusing on profitable growth, the company also delivered the highest third quarter EBITDA.
The consumer businesses sustained the growth momentum with buoyant sentiments and celebrations across the country leading to higher revenues. Garmenting export business continued with its strong order book from US & Europe markets and leverages the 'China +1' strategy. During the quarter, Raymond Realty set a new benchmark in real estate sector in India. The first three towers of the TenX Habitat project have been completed 24 months ahead of RERA timelines.
During the quarter, branded textile segment reported sales of Rs 902 crore as compared with Rs 899 crore in Q3 FY22. Festive season contributed to sales across primary channels and pan-India retail network with consumers opting for the company's innovative offerings. The quarter also saw the product driven marketing campaigns such as TechnoStretch series. The segment reported healthy EBITDA margin of 20.9% supported by operational efficiencies.
In branded apparel segment, topline growth of 15% was reported with sales at Rs 364 crore. The segment reported strong EBITDA margin of 11.2% driven by operational efficiencies.
Garmenting segment reported sales in a quarter at Rs 282 crore, a growth of 39% as compared to Rs 203 crore in previous year, led by high demand in US & Europe markets from existing customers and new customer acquisitions. EBITDA margin for the quarter was 9.1%.
High value cotton shirting segment sales grew by 32% to Rs 195 crore compared to Rs 148 crore in previous year, led by higher demand in festive season for cotton & linen fabric offerings by B2B customers in domestic market. The segment reported EBITDA margin of 10.7% for the quarter.
In the engineering business, sales remained flat in the quarter of Rs 208 crore on aggregate basis. The business reported EBITDA margin of 15.8% for the quarter.
Real estate business showcased a strong sales growth of 67% to Rs 292 crore from Rs 175 crore in previous year. The segment reported EBITDA margin of 25.5% for the quarter.
Gautam Hari Singhania, chairman & managing director of Raymond said, I am happy to share, that this is the fifth straight quarter where we have registered strong performance and overall generated free cash flows to further deleverage the balance sheet to below Rs 1,000 crore of net debt levels. Realty has set an industry benchmark by delivering 3 towers, 24 months ahead of RERA timelines and have achieved this commendable feat in just three years of real estate business operations.
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 housing ~550 residential units. 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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