Raymond Lifestyle Q2 profit slides 70% to Rs 42.18 cr, revenue down 5.3% to Rs 1,708 cr

New Delhi: Raymond Lifestyle has reported a 69.72 per cent decline in consolidated net profit to Rs 42.18 crore for the second quarter ended September 2024, on account of subdued demand and higher inflationary pressures.

It had reported a net profit of Rs 139.33 crore for the July-September quarter a year ago, according to a late night regulatory filing from Raymond Lifestyle, a Raymond Group firm on Tuesday.

Its revenue from operations was down 5.27 per cent to Rs 1,708.26 crore in the September quarter. It was at Rs 1,803.38 crore in the year-ago period.

Total expenses of the Singhania family-promoted firm were down 1.38 per cent to Rs 1,622.95 crore in Q2 FY'25.

Raymond Lifestyle's total income, which includes other income, was at Rs 1,735.21 crore, down 6.16 per cent.

"Raymond Lifestyle Ltd had a stable quarterly performance amidst subdued demand, weaker consumer sentiment and higher inflationary pressures," Managing Director Sunil Kataria said.

During the quarter, Raymond Lifestyle's revenue from the Textile segment, which consists of the branded fabric business of the company, was down 8.48 per cent to Rs 853.52 crore.

The decline was "predominantly on account of muted customer demand and ‘Shraadh’ in the month of September. the company said in its earning statement.

However, its revenue from 'Shirting' fabric, a B2B segment, was up 8.31 per cent to Rs 228.35 crore.

The apparel segment was marginally up around 1 per cent to Rs 441.02 crore in the September quarter. This segment, which has a branded readymade garments business, was driven by new store additions despite subdued consumer demand and challenging market conditions, it added.

Its revenue from 'Garmenting' was down 9.28 per cent to Rs 259.60 crore in the September quarter.

The performance of the garment manufacturing business in Q2 FY25 was "impacted by certain delays in shipment dispatches due to logistic challenges," it said.

During the quarter, Raymond Lifestyle continued its focus on retail expansion and operated 1,592 stores including 129 in Ethnix by Raymond.

"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," said Kataria.

This is the first quarter result of Raymond Lifestyle, which demerged from the parent company Raymond Ltd and listed on the stock exchanges on September 5 this year.

It has a portfolio of brands such as Park Avenue, ColorPlus, Parx, Raymond Made to Measure, Raymond Ready to Wear, Sleepz by Raymond and Ethnix by Raymond amongst others.

Shares of Raymond Lifestyle Ltd on Wednesday morning were trading at Rs 2,030 per scrip on BSE, down 7.67 per cent from the previous close.