Raymond Q4 Results: Margin expands sequentially with revenue growth but stock falls

Raymond Ltd. reported results for the March quarter on Tuesday, May 5, which were higher on a sequential basis across parameters. The stock though, fell as much as 6% in response to the results. It must be noted that shares had risen nearly 30% over the last one month.

Raymond reported 8.2% revenue growth during the quarter. The ₹603 crore figure was higher than the ₹557.2 crore reported last year. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 26.2% year-on-year to ₹75.7 crore.

EBITDA margin expanded by 200 basis points from the previous quarter, while EBITDA growth during the period stood at 26.2% to ₹75.7 crore.

"Our strategy remains clear: we are investing in high-moat sectors where our technical expertise provides a competitive edge," Chairman & Managing Director Gautam Hari Singhania said. "As our subsidiaries continue to deliver strong operational results, our priority is now to scale at pace with global demand. We remain steadfast in our pursuit of high-margin opportunities that drive long-term shareholder wealth," he added.

In the Aerospace & Defence division, the company capitalized on the shift towards domestic production and sophisticared subsystems, securing a high-value pipeline for global tier-1 partners.

The overall performance also received a boost due to increased production for leading global OEMs and product portfolio expansion.

Raymond remains net-debt-free, ending the year with a net cash surplus of ₹68 crore.

Shares of Raymond are trading 5% lower on Tuesday after the results at ₹441.9.