Raymond Lifestyle's Margins To Bounce Back By FY25 End, Says MD Sunil Kataria

The drop in Ebitda margins for Raymond Lifestyle Ltd. in second quarter is temporary and likely to reverse by the end of this financial year, Managing Director Sunil Kataria has said.

Speaking to NDTV Profit post the release of Q2 earnings on Nov. 6, Kataria emphasised that the margins are poised to bounce back by the end of fiscal 2025. 

Raymond Lifestyle posted a 5.3% drop in its revenue at Rs 1,708 crore in the second quarter of FY25, versus Rs 1,803 crore in the year-ago period. Ebitda was down 21% YoY at Rs 242 crore against Rs 306 crore in the corresponding quarter last year, while margins were at 13.9% against 16.6% in the year-ago period. Net profit of the company dipped sharply by 69.8% to Rs 42 crore from Rs 139 crore in the same period of last fiscal.

“Our Ebitda margins are around 14% right now. It’s obviously a scale de-leverage which has happened. You lose a certain amount of revenue that immediately impacts the Ebitda margins. But if you see sequentially, we have grown over the last quarter,” he said.

The top executive does not view dropping Ebitda margins as a challenge for Raymond Lifestyle.

“By the end of the year, we should be able to scale up our Ebitda margins. I don’t see a challenge as we have enough cost-saving initiatives that are there on the pipeline. We continue to focus on our efficiencies for our business,” he noted.

Raymond Lifestyle aims to increase its current capacity of 6.5 million units to up to 10 million units, the top executive revealed. 

“We have a total capacity of 6.5 million units and we are targeting to shift that to 10 million units because we have one of the best strategic placements in terms of our capability, skills, and order book we are seeing coming our way. That’s a pure capacity expansion that’s happening in garments,” Kataria said.

Shares of Raymond Lifestyle Ltd. closed 7.91% lower at Rs 2,026.9 apiece on the NSE on Wednesday, against a 1.12% advance in the NSE Nifty 50.