Raymond Lifestyle Limited reported its financial performance for Q3 FY25, reflecting marginal year-on-year (YoY) growth in revenue but a significant drop in net profit. The company’s revenue from operations increased to Rs 1,754 crore, up 2% from Rs 1,726 crore in Q3 FY24 and 3% sequentially from Rs 1,708 crore in Q2 FY25. Total income for the quarter stood at Rs 1,796 crore, compared to Rs 1,769 crore a year ago. However, the company’s total expenses rose sharply by 10% YoY to Rs 1,708 crore from Rs 1,554 crore, impacting profitability. Profit before tax declined 59% YoY to Rs 88 crore from Rs 213 crore but showed a 66% sequential improvement from Rs 53 crore in Q2 FY25. Net profit for the quarter fell 60% YoY to Rs 64 crore from Rs 162 crore in Q3 FY24, although it saw a 52% improvement compared to Rs 42 crore in the previous quarter.
The company’s expenses were primarily driven by a 10% YoY increase in material and operating costs. Cost of materials consumed stood at Rs 360 crore, up 8% YoY. Purchases of stock-in-trade amounted to Rs 378 crore, while employee benefits expense and depreciation costs were recorded at Rs 244 crore and Rs 79 crore, respectively. Despite a challenging market environment, Raymond Lifestyle emphasized its focus on maintaining operational efficiency and expansion. Commenting on the performance, Managing Director Sunil Kataria said, “Q3FY25 continued to be a challenging quarter for our business. Despite weaker market conditions, our efforts have resulted in low single-digit revenue growth. Our continued focus on retail expansion led to the opening of 135 new stores during the current financial year, reaching a total of 1,653 stores, including 143 stores under Ethnix by Raymond. During the quarter, we expanded into the Innerwear Category by launching Park Avenue Innerwear, which has received positive feedback from the trade channel. Our focus remains on our strategy to build a long-term sustainable and profitable business.”
The company’s stock reacted negatively to the results, with Raymond Lifestyle shares falling over 9% to Rs 1,550, down Rs 161 from the previous close of Rs 1,711. The stock traded in the day’s range of Rs 1,580 to Rs 1,725. The company’s 52-week range stands between Rs 1,557 and Rs 3,100, with a market capitalization of Rs 9,673 crore as of today.
Raymond Lifestyle continues its efforts to optimize costs and navigate the ongoing challenges in the market while focusing on strategic expansion initiatives.
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