Raymond Ltd Share Price – NSE  / BSE

Realty, Small Cap

Raymond has received 'No Adverse Observation/No Objection' from both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) for its proposed Scheme of Arrangement with Raymond Realty (RRL).

The approval marks a significant milestone in Raymond's strategic restructuring. The company's board had initially approved the demerger plan on 4 July 2024, aiming to unlock value for shareholders.

Post-demerger, Raymond Realty will become an independent listed entity, allowing investors to directly participate in the growth of its real estate business. For every share held in Raymond, shareholders will receive one share of Raymond Realty (1:1).

Raymond Realty has around 100 acres of land in Thane with approximately 11.4 mn sq ft RERA approved carpet area of which about 40 acres is currently under development. There are five ongoing projects worth Rs 9,000 crore on its Thane land, with an additional potential to generate more than Rs 16,000 crore, making a total potential revenue of over Rs 25,000 crore from this land bank. The Raymond's Real Estate Business has reported revenue of Rs 1,593 crore (43% YoY growth) and EBITDA of Rs 370 crore in FY24.

The demerger aligns with Raymond Group's stated objectives of simplifying its corporate structure and enhancing shareholder value for operational and structural benefits. Leveraging Raymond's institutional strength, the move will allow for independent, dedicated management teams with industry-specific expertise to sharpen business focus and tailor investment strategies to each sector's unique dynamics.

Raymond is a leading manufacturer of worsted suiting fabrics and garments in India. It also has a presence in precision engineering products and real estate. Raymond's consolidated net profit tumbled 62.4% to Rs 60.03 crore despite of 122.2% increase in revenue from operations to Rs 1,044.74 crore in Q2 FY25 over Q2 FY24.

Raymond Realty posted revenue of Rs 571 crore in Q2 FY25 from Rs 243 crore in Q2FY24 recording a solid growth of 135%. The segment reported an EBITDA of Rs 112 crore in Q2 FY25 from Rs 47 crore in Q2 FY24. In Q2 FY25, the company achieved a strong booking value of Rs 562 crore, primarily driven by demand for 'TenX ERA', Sale of Retail shops in Thane and in JDA 'The Address by GS' in Bandra.

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Profit before tax (PBT) declined 47.7% to Rs 88.98 crore during the quarter as compared with Rs 170.21 crore posted in corresponding quarter last year.

EBITDA stood at Rs 172 crore, registering the growth of 75% as compared with Rs 98 crore in same quarter last year. EBTDA margin reduced to 15.6% in Q2 FY25 from 19.2% in Q2 FY24.

Raymond Realty posted revenue of Rs 571 crore in Q2 FY25 from Rs 243 crore in Q2FY24 recording a solid growth of 135%. The segment reported an EBITDA of Rs 112 crore in Q2 FY25 from Rs 47 crore in Q2 FY24.

In Q2 FY25, the company achieved a strong booking value of Rs 562 crore, primarily driven by demand for 'TenX ERA', Sale of Retail shops in Thane and in JDA 'The Address by GS' in Bandra.

The realtor’s engineering business reported sales of Rs 443 crore in Q2 FY25, doubling revenue compared to Rs 201 crore in the same quarter of the previous year, including revenue from Maini Precision Products (MPPL) of Rs 225 crore, which was acquired in March’ 24. The segment delivered an EBITDA margin of 11.0% in Q2 FY25. The performance was driven by support from the domestic markets for Flex plates, Ring Gear & Shaft Bearings categories. However, the company's exports were sluggish on account of weak demand and geopolitical issues.

Raymond Group has been a pioneer and leader in fabric manufacturing, since 1925, and then forayed into other sectors such as engineering business and Real Estate. Raymond Realty has cemented its position amongst the home buyers in MMR region. Raymond’s engineering business is well known with its leadership position in manufacturing files and hand tools and has a significant presence in national and international markets.

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Net profit of Raymond declined 62.43% to Rs 60.03 crore in the quarter ended September 2024 as against Rs 159.78 crore during the previous quarter ended September 2023. Sales rose 122.25% to Rs 1044.74 crore in the quarter ended September 2024 as against Rs 470.08 crore during the previous quarter ended September 2023.

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Raymond will hold a meeting of the Board of Directors of the Company on 4 November 2024.

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