Detailed Narrative
Q3 FY25 Consolidated Financial Performance Overview
Raymond Limited reported a robust Q3 FY25, with consolidated revenue reaching ₹985 crores, marking a significant 36% year-on-year growth from ₹727 crores in Q3 FY24. EBITDA for the quarter stood at ₹169 crores, growing 33% year-on-year, with an EBITDA margin of 17.2%. Profit after tax from continuing operations surged by 75% year-on-year to ₹72 crores, up from ₹41 crores in the previous year, reflecting strong operational performance.
Real Estate Business Momentum and Outlook
The real estate segment achieved a booking value of ₹505 crores in Q3 FY25, driven by strong demand for projects like GS season 2.0, TenX ERA, and the JDA project in Bandra. Segmental revenue grew 11% year-on-year to ₹488 crores, with EBITDA increasing 19% to ₹116 crores, resulting in an improved EBITDA margin of 23.8% (up from 22.1% in Q3 FY24). Management reiterated its target of 20-25% year-on-year growth in booking value and highlighted a total potential revenue of approximately ₹32,000 crores from current real estate projects.
Engineering Business Performance and Recovery Signs
The engineering business reported a revenue of ₹433 crores in Q3 FY25, significantly higher than ₹217 crores in Q3 FY24, partly due to the acquisition of Maini Precision Business. The segment's EBITDA margin was 12%, a decrease from 13.8% in Q3 FY24, attributed to changes in product mix. While the domestic auto ancillary segment showed growth, export markets were weak due to the European auto market slowdown🌐 and the Red Sea crisis. However, management anticipates a recovery in Q4, particularly in aerospace post-resolution of production issues and growth in hybrid market products.
Strategic Demerger and Restructuring Updates
The demerger of the real estate business is well on track, having received stock exchange, shareholders', and creditors' approvals. The company expects to complete the listing of Raymond Reality Limited as a separate entity in the second quarter of Fiscal '26. Concurrently, the engineering business is undergoing restructuring, with two new subsidiaries planned: one for aerospace defense and another for auto components and engineering consumables. The aerospace subsidiary is expected to be completed within the next three months.
Debt and Liquidity Position
Raymond Limited maintains a strong financial position, remaining a net debt-free business with a net cash surplus of ₹696 crores, an increase of ₹194 crores since March 2024. The total gross debt stands at ₹886 crores, which includes debt from the Maini Precision Business acquisition and existing working capital facilities. The company reported robust liquidity with cash and cash equivalents of ₹1582 crores as of December 31, 2024.