👔 Raymond Wants To Get Rid Of The Red Mark, Expand Footprints Into Realty
The diversified Group behind ‘The Complete Man’ tagline is aiming to be completely free of net debt in 3 years. The company will also launch the initial stake sale of its wholly-owned JK Files and Engineering (JKFEL) this fiscal.
JKFEL, under which the group consolidated its tools, hardware, and auto ancillary businesses, had proposed to launch the IPO, with Raymond participating as a selling shareholder.
The diversified group, which operates in segments like branded textile, branded apparel, retail, garments, engineering, real estate, and FMCG, had recorded consolidated revenue of Rs. 6,348 Cr in FY22, as against Rs.3,648 Cr a year ago.
In its next move to get rid of net debt obligations, Raymond will focus on liquidity management through cost reduction initiatives and working capital optimization.
So Far, So Good
Raymond had reduced its net debt to Rs.1,088 Cr by the end of FY22 from Rs. 1,416 Cr in FY21 and Rs.1,859 in FY20. The Group’s net debt-to-equity ratio fell to 0.4 in FY22 from 0.8 in FY20.
It also recorded its highest-ever EBITDA of Rs.881 Cr in FY22.
Shifting Focus
The Gautam Singhania-led suiting and apparel giant’s real estate business was launched just before the lockdown in 2019 in Thane, where it has a land bank. Ten X Realty Ltd. was incorporated as a step subsidiary to Raymond Ltd to develop the realty business, which is now on its way to becoming the ‘core business’ for the group.
With the construction activity in full swing, subsidiarisation of the Real Estate business is expected to be completed in FY 2022–23.
Too long? Here’s a one-liner: Raymond aims to be a net debt-free company in the next 3 years; will soon shift focus on its real estate arm to make it the ‘core business.’
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