Raymond Realty, a prominent player in the real estate sector, has reported a 23% year-on-year revenue decline to ₹374.00 crore in the first quarter, marking its first quarterly results since listing as a separate entity following demerger from Raymond Ltd.

Financial Performance

The company's total income fell to ₹392.00 crore from ₹498.00 crore in the same period last year. EBITDA dropped 39% to ₹41.00 crore, with margins compressing to 10.50% from 13.50%. Raymond Realty attributed the decline to low inventory levels in mature projects and natural sales tapering.

Sales and Collections

Booking value decreased significantly to ₹306.00 crore from ₹611.00 crore, primarily from sales of The Address by GS 2.0 and Ten X Era in Thane. Collections stood at ₹374.00 crore versus ₹483.00 crore last year.

Key Financial Metrics

Management Outlook

Managing Director Harmohan Sahni indicated that the performance was in line with expectations and anticipates stronger activity in the second half with new project launches.

Portfolio and Future Plans

Raymond Realty maintains a portfolio with a gross development value of ₹40,000.00 crore, including:

• 100 acres in Thane with ₹25,000.00 crore potential revenue
• Six Joint Development Agreements worth ₹14,000.00 crore

The company remains debt-free with a net cash surplus of ₹233.00 crore and plans to launch three to four JDA projects over the next six to nine months.

Stock Performance

Raymond Realty's shares ended at ₹728.00, up 4.79%, despite the reported revenue decline.

As the real estate sector continues to evolve, investors and market watchers will be keen to see how Raymond Realty navigates the challenging business environment and capitalizes on its planned project launches in the coming quarters.

Raymond Group, a leading player in India's textile and apparel industry, is poised for significant growth following the anticipated India-UK Free Trade Agreement (FTA), according to the company's Chief Financial Officer, Amit Agarwal. The FTA is expected to have a transformative impact on India's textile sector, potentially doubling Raymond's UK export revenue within the next 18-24 months.

FTA to Level the Playing Field

Agarwal highlighted that the FTA would create a more equitable competitive landscape for Indian exporters. Currently, countries like Bangladesh, Vietnam, and Indonesia enjoy zero-duty benefits in the UK market, giving them a significant advantage over Indian textile manufacturers. The new agreement is set to eliminate this disparity, allowing Indian companies to compete on equal footing.

Overcoming Previous Limitations

The CFO pointed out that the textile industry has historically operated on thin margins, with high duties further constraining export potential. As a result, exports were largely limited to high-value products. The FTA is expected to alleviate these constraints, opening up opportunities for a wider range of textile exports from India to the UK.

Raymond's Strategic Advantage

Raymond Group is particularly well-positioned to capitalize on the FTA, thanks to its integrated supply chain. Agarwal emphasized that this vertical integration, coupled with the company's lead time advantages, will be key factors in driving growth in the UK market.

Projected Growth and Future Prospects

With the implementation of the FTA, Raymond Group is projecting a significant boost in its UK export revenue. Agarwal stated that the company expects to double its exports to the UK over the next 18-24 months, underscoring the substantial impact the agreement is likely to have on Raymond's international business.

Broader Implications for India's Textile Industry

Beyond the immediate benefits for Raymond Group, Agarwal views the India-UK FTA as a stepping stone for broader international trade opportunities. He suggested that this agreement could pave the way for future negotiations with the European Union, potentially leading to even greater export opportunities for India's textile sector.

The CFO's optimistic outlook reflects the potential for the FTA to not only boost Raymond Group's performance but also to strengthen the export capabilities of India's entire textile industry. As the agreement moves closer to implementation, it will be crucial for textile manufacturers to prepare for increased international competition and capitalize on the new opportunities in the UK market.