Raymond reported a third-quarter profit rise on Thursday, as strong demand for its high-margin branded clothes and real estate offers outpaced cost increases.
The company’s consolidated profit after tax nearly quadrupled to 1.84 billion rupees (USD 22 million) in the three months ended 31 December, according to an exchange filing.
Following the results, the company’s shares rose 1 per cent.
Raymond, which has numerous operations, including denim and luxury houses, said its net sales increased by 11 per cent in the December quarter, mirroring an 11 per cent increase in total expenses.
A twofold rise in revenue from real estate and property development, as well as a 20 per cent gain in branded garments and auto components, helping the business offset flatness in its core – textiles.
Raymond is to open more than 500 stores in the next three years, in addition to the more than 1,400 outlets it now operates nationwide, according to managing director and chairman Gautam Hari Singhania.
Last year, in a major restructuring, the company sold its consumer line to Godrej Consumer and announced a foray into aerospace, defense and electric vehicles businesses, while adding heft to its engineering segment.
