Raymond's Net Profit Drops 88.7 pc to Rs 22 cr in Q3 FY21

Raymond Ltd has posted an 88.7 percent plunge in its consolidated net profit to Rs 22.18 crore for the quarter ending December 2020. The company had reported a net profit of Rs 196.83 crore during the October-December period of the previous fiscal.

Raymond’s revenue from operations was down 34.1 percent to Rs 1,243.44 crore during the quarter under review as against Rs 1,885.43 crore in the corresponding period of the previous fiscal.

Commenting on the results, Gautam Hari Singhania, Chairman & Managing Director, Raymond, said, “With markets and channels opening up and consumer sentiments getting back on track, we are seeing demand for our products & services getting better on a quarter on quarter basis and our sustained focus on operational efficiencies has yielded in a profitable quarter. Additionally, our Engineering Businesses are back on track with profitable growth and performance of the FMCG business has also been profitable in the third quarter.”

The firm's total expenses were at Rs 1,274.38 crore in the third quarter of FY2020-21, down 30.9 percent compared to Rs 1,844.69 crore in the year-ago quarter.

Raymond’s Real Estate and Development of property segment was up 47.56 percent to Rs 63.20 crore as against Rs 42.83 crore.

“We are pleased to see an increased number of bookings in our realty project led by consumer incentives such as reduced stamp duty and low-cost home loans. As the vaccination drive continues to gain momentum across the country, the businesses are gaining more confidence going forward,” Gautam further added.

The company’s revenue from the auto components segment was up 43.48% percent to Rs 58.74 crore as against Rs 40.94 crore of the October-December quarter of the last fiscal.