Raymond Lifestyle Q4 Report: Unveiling a Rs 45-Crore Loss—What It Means for the Future

Raymond Lifestyle Ltd. recently reported a significant net loss of Rs 44.95 crore for the March quarter. This decline comes as a surprise, especially when compared to last year’s net profit of Rs 235.58 crore during the same period. The company attributes this downturn to weaker consumer demand and troubled operations due to system outages.

In terms of revenue, Raymond saw an 11% drop, bringing it to Rs 1,494.15 crore compared to Rs 1,684.55 crore last year. This decline was heavily influenced by high inflation and a ransomware attack that temporarily halted operations. Despite the challenges, the company’s IT team, with support from cybersecurity experts, managed to contain the breach, but the repercussions were felt in sales and profitability.

Total expenses for Raymond increased by 4.45%, reaching Rs 1,625.08 crore. The textile segment, which includes their well-known fabric line, suffered a steep 21% dip in revenue, totaling Rs 727.35 crore. This decline was largely driven by lower demand and the impact of the cybersecurity incident. Similarly, the branded apparel division saw a 4.26% drop in revenue, landing at Rs 391.2 crore.

Additionally, the segment faced a sharp decrease in its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, falling from 13.5% to just 0.4%. The company indicated that investments in expanding retail stores and a challenging sales environment contributed to this unfavorable shift.

Looking at the garmenting segment, revenues remained nearly unchanged at Rs 248 crore, but customer caution ahead of potential U.S. tariff changes created an uncertain market atmosphere.

Overall, Raymond Lifestyle’s total income, including other earnings, fell to Rs 1,579.77 crore, an 8.5% decline. For the fiscal year ending March 31, 2025, the company managed a modest profit of Rs 38.19 crore, though its total consolidated income decreased by 5% to Rs 6,689.80 crore.

According to a recent report by Statista, consumer spending in the textile market has shifted significantly post-pandemic, reflecting broader economic uncertainties. Experts suggest that companies like Raymond may need to innovate and adapt more rapidly to changing consumer behaviors to regain profitability.

The landscape of the textile industry is evolving, and Raymond’s recent setbacks serve as a reminder of the growing importance of robust cybersecurity measures and agile business strategies in today’s digital age.



Source link

Raymond Lifestyle Ltd,results