Latest news with #JointDevelopmentAgreements
Yahoo
15-05-2025
- Business
- Yahoo
Raymond Ltd (BOM:500330) Q4 2025 Earnings Call Highlights: Strong Real Estate Growth and ...
Total Income (Continuing Operations): ?601 crore in Q4 FY25; ?2,105 crore for FY25. EBITDA (Continuing Operations): ?99 crore in Q4 FY25; ?335 crore for FY25. EBITDA Margin (Continuing Operations): 16.4% in Q4 FY25; 15.9% for FY25. Engineering Business Sales: ?528 crore in Q4 FY25. Engineering Business EBITDA: ?81 crore in Q4 FY25. Engineering Business EBITDA Margin: 15.3% in Q4 FY25. Net Cash Surplus: ?263 crore as of March 2025. Gross Debt: ?677 crore as of March 2025. Cash and Cash Equivalents: ?940 crore as of March 2025. Real Estate Revenue: ?766 crore in Q4 FY25, a 13% growth from Q4 FY24. Real Estate EBITDA: ?194 crore in Q4 FY25, a 13% growth from Q4 FY24. Real Estate EBITDA Margin: 25.3% in Q4 FY25. Real Estate Bookings: ?636 crore in Q4 FY25. Real Estate Net Cash Surplus: Close to ?400 crore as of March 2025. Warning! GuruFocus has detected 3 Warning Signs with BOM:500330. Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Raymond Ltd (BOM:500330) reported a strong quarterly performance with a total income of ?601 crore and an EBITDA of ?99 crore, achieving a margin of 16.4% in Q4 FY25. The company successfully demerged its real estate business, positioning Raymond Realty as an independent entity, which is expected to pursue its growth trajectory. Raymond Ltd remains a net debt-free business with a net cash surplus of ?263 crore as of March 2025. The real estate segment reported a 13% year-on-year growth in revenue, reaching ?766 crore in Q4 FY25, with an EBITDA margin of 25.3%. The aerospace business is showing promising signs of recovery, with anticipated growth momentum following the resolution of production issues faced by major aircraft manufacturers. Export markets for the auto ancillary and engineering consumable segments remain subdued due to the ongoing slowdown in the European automotive market and disruptions caused by the Red Sea shipping crisis. The Indian economy's growth rate in Fiscal 2025 was slightly lower than the previous year, which could impact overall market dynamics. Recent policy changes have introduced uncertainty impacting markets worldwide, posing challenges for strategic decision-making. The auto sector component segment is experiencing recent softness due to weaker market conditions, which may impact near-term growth. The real estate market faces potential delays in project launches due to approval processes and legal constraints, particularly in the Mumbai metropolitan region. Q: What are the peak funding requirements for the Realty division's Joint Development Agreements (JDAs), and how do the construction funding rates compare to other developers? A: Harmohan Sahni, CEO - Realty: The peak funding requirement for each JDA ranges between ?250 crore to ?400 crore, depending on the project. Amit Agarwal, Group CFO: The interest rates for construction funding are between 8% to 9.9%, which are competitive due to the company's good credit rating. Q: How does Raymond Ltd plan to manage contractor capacity for its projects? A: Harmohan Sahni, CEO - Realty: The contracting process is competitive, with bids from various contractors. While we have used some initial contractors, we also engage smaller contractors for parts of the work. Future contracts will continue to be awarded based on competitive bidding. Q: What is the launch pipeline for JDAs in the current year, particularly in Thane and other areas? A: Harmohan Sahni, CEO - Realty: We plan to launch a few projects in Q3 and Q4, with a possible launch in Thane during Q2. No launches are scheduled for Q1 due to it being a typically low period. Q: How have residential real estate sales trended recently, and are there any signs of market softening? A: Harmohan Sahni, CEO - Realty: Sales were strong in March, compensating for slower months in January and February. April and May have been business as usual, with a temporary dip due to geopolitical tensions, but inquiries have resumed following recent developments. Q: What is the outlook for the aerospace and automotive markets in the coming year? A: Gautam Singhania, Executive Chairman: The aerospace market is recovering well, with Boeing resuming production. The automotive market is mixed, with stronger performance in India compared to overseas. Despite geopolitical challenges, the overall outlook remains positive. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Standard
14-05-2025
- Business
- Business Standard
Raymond just got lighter: share price adjusts for realty demerger
Raymond's share price plunged nearly 64% to Rs 556.45 as the stock turned ex-date for the demerger of its real estate arm, Raymond Realty. The record date for the demerger is set for Wednesday, 14 May 2025, to determine shareholder eligibility. As part of the arrangement, shareholders will receive one share of Raymond Realty for every share held in Raymond. The steep fall in Raymond's stock is not indicative of a sell-off but reflects the price adjustment due to the spinoff of its real estate vertical. Raymond Realty will now operate independently as a standalone listed entity. The demerger plan was first announced in July 2024 and received approval from the National Company Law Tribunal in March 2025. It officially came into effect on 1 May 2025. Post-demerger, investors will hold equity in both Raymond and Raymond Realty. Raymond Realty is expected to be listed on the stock exchanges in the second quarter of FY2025-26. The move is part of Raymond Groups broader strategy to unlock value by restructuring its operations into focused verticals. This marks the groups second major demerger, following the listing of Raymond Lifestyle in September 2024. During the Q4 quarter, the real estate business delivered a robust quarterly performance with a revenue of Rs 766 crore in Q4 FY25 from Rs 677 crore in Q4FY24 recording a growth of 13%. It reported an EBITDA of Rs 194 crore in Q4 FY25 from Rs 171 crore in Q4 FY24 and an EBITDA margin at 25.3% in Q4FY25. Raymond's real estate business signed two new Joint Development Agreements (JDAs) in Mahim and Wadala, with a combined Gross Development Value (GDV) of approximately Rs 6,800 crore. With these additions, the total potential revenue from the current real estate portfolio stands at nearly Rs 40,000 crore, comprising around Rs 25,000 crore from the Thane land parcel and approximately Rs 14,000 crore from the JDA-led model. In Q4 FY25, the business recorded a strong booking value of Rs 636 crore, driven primarily by sustained demand for projects such as The Address by GS 2.0, Invictus, and Park Avenue High Street Retail in Thane, as well as The Address by GS in Bandra under the JDA model. Additionally, the real estate segment has turned net cash surplus, reporting Rs 399 crore in cash. Raymond Group, a pioneer in fabric manufacturing since 1925, later expanded into sectors such as engineering and real estate. Following the demerger of its lifestyle business into a separate listed entity in 2024, and now its real estate division, Raymond is now focused on its core strengthengineering. The companys engineering business is a market leader in the production of files and hand tools, with a strong footprint in both domestic and international markets. With the recent acquisition of Maini Precision Products Limited (MPPL), Raymonds engineering arm is set to transform into a large-scale provider of components for engineering, automotive, electric vehicles (EV), aerospace, and defense sectors.
News18
14-05-2025
- Business
- News18
Raymond Shares Crash 65% Today: Why Is The Stock Falling After Realty Demerger?
Last Updated: Shares of Raymond Ltd plunged 65% on Wednesday; Here are key points which investors should know Raymond Share Price Today: Shares of Raymond Ltd plunged 65% on Wednesday, but any negative news or fundamental weakness didn't drive the steep fall. Instead, it was a technical adjustment following the demerger of its real estate arm, Raymond Realty. By mid-day, Raymond stock was trading at Rs 556.45, down 64.36% from its previous close of Rs 1,561.30. The timing coincided with the ex-date of the demerger, when Raymond shares stopped including the value of its realty business. What's Driving the Fall? Today marks the record date to determine which shareholders are eligible to receive shares of Raymond Realty. Under the approved demerger scheme (effective from May 1), existing investors will receive one Raymond Realty share for every Raymond Ltd share held. The stock's sharp decline reflects a notional price adjustment, not panic selling. Since Raymond Realty has been carved out of the parent company, Raymond Ltd's share price has been recalibrated to exclude the real estate business. Some platforms may still show the pre-adjustment price, making the drop seem more dramatic than it actually is. Shareholders Haven't Lost Value Although Raymond Ltd's stock price dropped, shareholders now hold two separate investments: one in Raymond Ltd (which now reflects the non-realty businesses) and another in the soon-to-be-listed Raymond Realty. This is the second major demerger by the Raymond Group. In September 2024, it had listed Raymond Lifestyle as a standalone entity following a similar split of its apparel and fashion businesses. Strong Numbers from Raymond Realty The Address by GS 2.0, Invictus, Park Avenue – High Street Retail in Thane, and the JDA-based The Address by GS in Bandra. It posted a healthy EBITDA of Rs 194 crore with a margin of 25.3%, and holds a net cash surplus of Rs 399 crore. Expansion Strategy Gains Momentum Raymond Realty is aggressively expanding across the Mumbai Metropolitan Region (MMR). It has recently signed two Joint Development Agreements (JDAs) in Mahim and Wadala, together valued at Rs 6,800 crore, increasing its non-Thane project count to six. 'This strategic move reinforces our commitment to unlocking shareholder value and focusing on pure-play businesses," said Gautam Hari Singhania, Chairman and Managing Director of Raymond. 'We're expanding our footprint across MMR and committed to timely, high-quality developments." What Investors Should Know While the sharp drop in Raymond Ltd's share price may alarm some investors, especially those using apps or platforms that haven't updated valuations, it's important to note this is a technical correction, not a reflection of business weakness. With the demerger complete and the real estate arm set to list independently, Raymond aims to boost transparency, operational focus, and growth potential across both entities.
Business Standard
13-05-2025
- Business
- Business Standard
Raymond slides as Q4 PAT slumps 40% YoY to Rs 137 crore
Raymond slipped 1.29% to Rs 1,553.70 after the company's consolidated net profit tumbled 40.17% to Rs 137.47 crore in Q4 FY25 as against Rs 229.79 crore posted in Q4 FY24. Total income soared 94.90% year on year (YoY) to Rs 601.4 crore in the quarter ended 31 March 2025. Profit before tax (PBT) declined 4.44% YoY to Rs 44.55 crore in Q4 FY25, comapared with Rs 46.62 crore in Q4 FY24. EBITDA stood at Rs 99 crore in Q4 FY25, registering a growth of 38% YoY, compared with Rs 72 crore in same quarter last year. EBTDA margin reduced to 16.4% in Q4 FY25 from 23.3% in Q4 FY24. The engineering segment reported sales of Rs 528 crore in Q4 FY25, up from Rs 234 crore in Q4 FY24, reflecting the contribution from the MPPL acquisition completed in March 2024. Despite this growth, the segment remained affected by weak export demand and ongoing geopolitical challenges. EBITDA margin for the quarter stood at 15.3%, slightly down from 15.8% in Q4 FY24, primarily due to changes in the product mix. Notably, the aerospace division saw a recovery in growth following the resolution of production issues at a major aircraft manufacturer. Raymond remains a net cash surplus company, holding Rs 263 crore in cash as of the end of Q4 FY25. The demerger of Raymond Realty (RRL) was completed on 1 May 2025. The record date has been set for 14 May 2025, to determine the eligible shareholders of Raymond (RL) who will receive equity shares of RRL, in accordance with the approved scheme of arrangement. As per the scheme, each shareholder of Raymond Limited will receive one equity share of Raymond Realty for every share held. During Q4 FY25, the real estate business posted a strong performance with revenue rising to Rs 766 crore, up 13% from Rs 677 crore in Q4 FY24. EBITDA increased to Rs 194 crore from Rs 171 crore in the same period last year, with the EBITDA margin improving to 25.3%. The company remains focused on timely project execution, continuing its track record of delivering ahead of schedulea key driver of enhanced customer trust and confidence. During the quarter, the company has signed two new Joint Development Agreements (JDAs) in Mahim and Wadala, with a combined gross development value (GDV) of approximately Rs 6,800 crore. These strategic additions are set to significantly contribute to our future growth and reinforce our position as a leading developer in the MMR region. With these new projects, the total potential revenue pipeline for our Real Estate business now stands at approximately Rs 40,000 crore. This includes around Rs 25,000 crore from our Thane land parcel and Rs 14,000 crore from our JDA-led developments. In Q4 FY25, we achieved a robust booking value of Rs 636 crore, driven by strong demand for key developments such as The Address by GS 2.0, Invictus, and Park Avenue High Street Retail in Thane, as well as The Address by GS in Bandra under our JDA portfolio. The Real Estate business continues to maintain a strong financial position and is now Net Cash Surplus with Rs 399 crore. Gautam Hari Singhania, Chairman & Managing Director, Raymond Limited said; We are delighted to announce the successful demerger of our Real Estate business, which is expected to be listed in the Q2FY26. This strategic move emphasizes our commitment to drive sustainable growth via pure play business and further enhance shareholder value. We continue to expand our portfolio through the JDA route in this quarter, having signed two additional JDAs, in Mahim and Wadala aggregating to Rs 6,800 crore, with this now we have a total of six projects outside our Thane Land. On the Engineering business, we continue to remain highly optimistic about FY26 performance. The aerospace sector presents significant growth opportunities, and we are wellpositioned to leverage the same to deliver sustained value to our stakeholders. Raymond Group has been a pioneer and leader in fabric manufacturing, since 1925, and then forayed into other sectors such as engineering business and Real Estate. Raymond Realty has cemented its position amongst the home buyers in MMR region. Raymonds engineering business is well known with its leadership position in manufacturing files and hand tools and has a significant presence in national and international markets.
