Raymond Share Price in Focus: Released Q2 FY25 Results

On Tuesday, November 5, 2024, Raymond’s share price surged by as much as 4.51%, reaching an intraday high of ₹1,762.30 per share. The stock’s impressive performance followed strong financial results for the company.

Raymond’s profit from continuing operations more than doubled in the September quarter of FY25, rising to ₹59 crore, compared to ₹27.8 crore in the same period last year. This sharp growth highlights the company’s strong operational performance.

Revenue from operations also saw a significant boost, soaring to ₹1,044.7 crore in Q2FY25, up from ₹470 crore in the corresponding quarter of FY24. This impressive growth in revenue unde₹cores Raymond’s strong market position and growing demand for its products.

At the operating level, Raymond’s earnings before interest, tax, depreciation, and amortisation (EBITDA) climbed to ₹116 crore in Q2FY25, up from ₹55.8 crore in Q2FY24. However, the company’s EBITDA margin slightly contracted by 80 basis points, standing at 11.1% in Q2FY25, down from 11.9% in the same quarter last year.

Segment-wise Performance

Real Estate Business

Raymond’s real estate segment, Raymond Realty, reported a remarkable 135 % growth in revenue, reaching ₹ 571 crore in Q2FY25, compared to ₹ 243 crore in Q2FY24. EBITDA for this segment also surged to ₹ 112 crore from ₹ 47 crore in the previous year. A major highlight was the launch of the Park Avenue – High Street Reimagined Retail project in Thane, a 0.08 million square feet development that generated significant interest in September 2024.

Engineering Business

The engineering segment posted a strong performance, with sales doubling to ₹ 443 crore in Q2FY25 from ₹ 201 crore in the same quarter last year. The growth was driven by robust domestic demand for products like flex plates, ring gears, and shaft bearings. However, export growth was constrained by weak demand and geopolitical challenges. Despite this, Raymond continues to maintain a healthy net cash surplus of ₹ 685 crore, positioning the company well for future growth opportunities.

“We witnessed good momentum both in the Real Estate and Engineering businesses. With the launch of Park Avenue- High Street Reimagined, the fi₹t of its kind retail space in Thane, Raymond Realty has taken yet another pioneering step to create the aspirational ecosystem for its current and upcoming residential projects. The project execution remains our USP as our endeavour is to continue to deliver before RERA timelines. The seamless integration of Maini operations with JK Engineering has taken an affirmative shape and has started positive results with growth in the overall engineering business,” said Gautam Hari Singhania, chairman and managing director, of Raymond Limited.

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