India's Raymond Lifestyle expands retail network despite revenue drop

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Q2 FY25 stood at ₹242 crore (~$2.87 million), translating to an EBITDA margin of 13.9 per cent, down from 16.6 per cent in Q2 FY24. The profit before tax (PBT) was ₹112 crore (~$1.33 million), a 44.8 per cent decrease from the previous year. The reduced EBITDA and PBT margins reflect the impact of subdued consumer demand and broader economic pressures, the company said in its financial statement.

The Branded Textile segment experienced a decline in revenue, posting ₹854 crore (~$10.13 million) in Q2 FY25 versus ₹933 crore (~$11.07 million) in the prior year’s quarter, affected by lower customer demand and the seasonal ‘Shraadh’ period in September. EBITDA margin dropped to 18.9 per cent from 22.2 per cent.

The Branded Apparel segment recorded a marginal revenue increase, reaching ₹441 crore (~$5.23 million) from ₹437 crore (~$5.18 million) in Q2 FY24, supported by new store additions despite challenging consumer sentiment. The segment’s EBITDA margin improved to 13.0 per cent from 12.2 per cent due to an emphasis on intake margins. During the quarter, Raymond Lifestyle expanded its retail presence, opening 52 new stores, including 11 ‘Ethnix by Raymond’ stores, bringing the total network to 1,592 stores as of September 30.

The Garmenting segment posted revenue of ₹260 crore (~$3.08 million), down from ₹286 crore (~$3.39 million) in the same period last year, affected by shipment delays due to logistical challenges. Its EBITDA margin for the quarter was 9.6 per cent.

In contrast, the High Value Cotton Shirting segment reported an 8 per cent revenue increase, reaching ₹228 crore (~$2.71 million) as B2B customers prepared for the upcoming festive and wedding season. However, the segment’s EBITDA margin declined to 9.7 per cent due to input cost pressures.

Sunil Kataria, managing director of Raymond Lifestyle Limited, said: “Raymond Lifestyle Limited had a stable quarterly performance amidst subdued demand, weaker consumer sentiment and higher inflationary pressures. Our continued focus on retail expansion led to reaching 1,592 stores including 129 stores in Ethnix by Raymond. We have launched Sleepz and getting good responses from trade channel. Recent buoyancy has been witnessed at the start of a festive and wedding season. Going forward, we are strategically positioned to capture demand through our retail expansion plans, new product launches and marketing campaigns.”

Fibre2Fashion News Desk (KD)