Raymond Lifestyle Sees Stable Revenue Amid Market Hurdles
Raymond Lifestyle Ltd, which recently listed as a pure-play lifestyle business on 5 September 2024, announced a steady performance in Q2 FY25, with total income reaching Rs 1,735 crore amidst challenging market conditions, a 6.2% decrease from Rs 1,849 crore in Q2 FY24. EBITDA stood at Rs 242 crore, down from Rs 306 crore year-over-year, yielding a margin of 13.9%.
Despite subdued demand and inflationary pressures, Raymond continued its retail expansion, opening 74 new stores in H1 FY25, bringing its total retail network to 1,592 stores, including 129 Ethnix by Raymond outlets. Managing Director Sunil Kataria noted that the company’s growth strategy is bolstered by this expansion and recent launches, like Sleepz, which received strong trade channel responses. “We are strategically positioned to capture demand through retail expansion, new product launches and marketing campaigns, particularly with the festive season underway,” he said.
Segmental Highlights:
Branded Textile: Revenue dipped to Rs 854 crore in Q2 FY25 from Rs 933 crore in Q2 FY24 due to softer demand and the “Shraadh” period, impacting consumer sentiment. The segment’s EBITDA margin was 18.9%, lower than the previous year’s 22.2%.
Branded Apparel: Revenue grew to Rs 441 crore, up slightly from Rs 437 crore in Q2 FY24, driven by new store additions despite weak demand. The segment’s EBITDA margin rose to 13.0% from 12.2% last year due to focused intake margins. The quarter saw the opening of 52 new stores, including 11 Ethnix by Raymond outlets.
Garmenting: Revenue was Rs 260 crore, down from Rs 286 crore in Q2 FY24, with delays in shipment dispatches impacting performance. EBITDA margin for this segment was 9.6%.
High-Value Cotton Shirting: Revenue increased by 8% to Rs 228 crore in Q2 FY25, fueled by B2B demand ahead of the festive season. EBITDA margin was at 9.7%, slightly impacted by input costs.
Raymond Lifestyle remains optimistic about leveraging its expanded retail footprint, new product lines and focused campaigns to capture the emerging demand in India’s dynamic lifestyle sector.
