Raymond Lifestyle Ltd Share Price – NSE /  BSE

Textiles, Small Cap

On a consolidated basis, the company's net profit dropped 69.7% to Rs 42.18 crore on a 5.3% decline in net sales to Rs 1708.26 crore in Q2 September 2024 over Q2 September 2023.

Profit before tax fell 74% YoY to Rs 52.82 crore in Q2 September 2024. EBITDA fell 21% YoY to Rs 242 crore during the quarter. EBITDA margin stood at 13.9% in Q2FY25, lower than 16.6% in Q2FY24.

Total expenses rose 0.6% to Rs 1552.92 crore in Q2 FY25 over Q2 FY24. During the quarter, cost of materials consumed stood at Rs 322.28 crore (up 24% YoY) while employee benefits expense was at Rs 242.21 crore (up 9.1% YoY).

Net cash outflow from operating activities decreased from Rs 378.64 crore in Q2FY24 to Rs 258.29 crore in Q2FY25.

Sunil Kataria, managing director of Raymond Lifestyle said that the company had a stable quarterly performance amidst subdued demand, weaker consumer sentiment and higher inflationary pressures.

Our continued focus on retail expansion led to reaching 1,592 stores including 129 stores in Ethnix by Raymond. We have launched Sleepz and getting good responses from trade channel. Recent buoyancy has been witnessed at the start of a festive & wedding season. Going forward, we are strategically positioned to capture demand through our retail expansion plans, new product launches and marketing campaigns, he added.

In Q2 FY25, Branded Textile segment revenue declined to Rs 854 crore in Q2 FY25 vs Rs 933 crore in Q2 FY24 predominantly on account of muted customer demand and “Shraadh” in month of September.

Branded Apparel segment revenue grew marginally to Rs 441 crore in Q2 FY25 as compared to Rs 437 crore in the same quarter last year. The performance was driven by new stores additions despite subdued consumer demand and challenging market conditions. During the quarter, the company opened 52 new stores including 11 ‘Ethnix by Raymond’ stores. The total retail store network now stands at 1,592 stores as of 30th September 2024.

Garmenting segment reported revenue at Rs 260 crore in Q2 FY25 as compared to Rs 286 crore in same quarter previous year. The performance in Q2 FY25 was impacted by certain delay in shipment dispatches due to logistic challenges.

High Value Cotton Shirting segment reported revenue of Rs 228 crore in Q2 FY25 higher by 8% as compared to Rs 211 crore in same quarter previous year as our B2B customers prepare for ensuing festive and wedding season.

Raymond Lifestyle is India's largest integrated manufacturer of worsted suiting, offering comprehensive products for fabric and garmenting. The company's diverse portfolio includes some of the most iconic brands in the industry, such as 'Park Avenue', 'ColorPlus', 'Parx', 'Raymond Made to Measure', 'Raymond Ready to Wear', 'Sleepz by Raymond' and 'Ethnix by Raymond' amongst others. Raymond has one of the largest retail networks in India, with over 1,590 stores across 600 cities and towns. The company also has a significant hold over the Business to Business space through its garments business.

Raymond Lifestyle demerged from the parent company Raymond and listed on the stock exchanges on September 5 this year.

The stock was listed at Rs 3,000 per share on the BSE and Rs 3,020 per share on the NSE, representing a significant premium over the issue price of Rs 1,563 per share. This pricing was determined during a special trading session ahead of the listing.

Raymond's decision to demerge its apparel business into a separate entity aligned with its strategy of focusing on three distinct business verticals: real estate, lifestyle, and engineering. Raymond had announced a share exchange ratio of 4:5 (four shares of Raymond Lifestyle for every five held in Raymond).

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Net profit of Raymond Lifestyle declined 77.48% to Rs 26.14 crore in the quarter ended September 2024 as against Rs 116.05 crore during the previous quarter ended September 2023. Sales declined 4.52% to Rs 1315.48 crore in the quarter ended September 2024 as against Rs 1377.79 crore during the previous quarter ended September 2023.

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Raymond Lifestyle will hold a meeting of the Board of Directors of the Company on 5 November 2024.

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The stock was listed at Rs 3,000 per share on the BSE and Rs 3,020 per share on the NSE, representing a significant premium over the issue price of Rs 1,563 per share. This pricing was determined during a special trading session ahead of the listing.

Raymond's decision to demerge its apparel business into a separate entity aligns with its strategy of focusing on three distinct business verticals: real estate, lifestyle, and engineering. Raymond had announced a share exchange ratio of 4:5 (four shares of Raymond Lifestyle for every five held in Raymond).

However, despite the initial positive listing, RLL shares quickly faced selling pressure, plunging 5% on both exchanges to hit the lower circuit limit shortly after the debut. This suggests that some investors may have taken profits after the initial surge.

Raymond Lifestyle's current market capitalisation is Rs 17,363.23 crore. The company is a leading fashion and retail company with iconic men’s fashion brands and a vast retail network. The company offers fashion products and services with branded textile, apparel brands across formal casual and ethnic wear.

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