Image Credits - The Thrive
India’s Raymond Ltd reported a 40% increase in its adjusted profit for the first quarter on Tuesday, driven by robust performance in its real estate and engineering sectors. The company’s shift from textiles and apparel to focus on these areas has significantly contributed to its financial success.
The conglomerate, which has been restructuring its business model, recently divested its consumer goods division, which included brands like Park Avenue deodorant and Kamasutra condoms. This strategic move marked a transition towards focusing on its core strengths. In the latest quarter, Raymond Ltd further spun off its textiles and apparel business, concentrating on real estate and engineering.
Raymond’s real estate division saw remarkable growth, contributing to approximately 53% of the company’s revenue for the quarter. Sales in this segment surged by 108%, while the engineering business, which manufactures automotive and aerospace components, experienced a significant 100% increase in sales. This strong performance in both sectors helped Raymond’s adjusted profit before tax rise to 920 million rupees (about $11 million) for the April-to-June quarter, compared to 660 million rupees in the same period last year.
Looking ahead, Raymond Ltd plans to list its lifestyle business on stock exchanges this quarter and is in the process of spinning off its real estate business. Upon completion, the company will consist of Raymond Ltd, Raymond Lifestyle, and Raymond Realty, forming part of the larger Raymond Group.
The company’s strategic shift and strong sector performance underline its successful transition and redefined focus, positioning it for future growth.