Raymond Lifestyle Q3 Results: Stock surges nearly 6% after strong operational performance

Shares of Raymond Lifestyle Ltd. surged as much as 5% in trade on Tuesday, January 27, after it reported its earnings for the December quarter.

The company's net profit decline but its revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) increased and margins expanded.

Its net profit declined 33% to ₹43 crore in the December quarter from ₹64 crore in the previous year. The drop in profitability was due to the impact of the new labour codes, which resulted in a one-time expense of ₹42.68 crore.

Beyond profitability, the company's revenue increased 5.4% to ₹1,849 crore from ₹1,754 crore in the third quarter of the previous year. Growth in topline during the quarter was driven by domestic demand, driving substantial volumes in the branded textile and apparel divisions.

Raymond Lifestyle's  Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 32% to ₹237 crore from ₹180 crore in the preceding year.

Its margin expanded by nearly 300 basis points to 13% from 10.2% in the year-ago period. Margins expanded for the quarter despite an increase in the company's marketing spends.

Raymond Lifestyle's board of directors also appointed Prasad Ellatch Chathuar as the chief financial officer of the company, with effect from Tuesday, January 27, the company informed the exchanges.

Shares of Raymond Lifestyle witnessed a sharp gain of up to 2% post results and declined soon after to trade 0.5% lower. The stock was down 0.3% at 908.5 apiece around 11.55 am on Tuesday.

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