BENGALURU (Reuters) – Indian conglomerate Raymond reported a third-quarter profit jump on Thursday, as healthy demand for its high-margin branded apparel and real estate offerings outweighed a rise in costs.
The company’s consolidated profit after tax nearly doubled to 1.84 billion rupees ($22 million) in the three months to Dec. 31, it said in an exchange filing.
Shares of the company were up 1% after the results.
Raymond, which has multiple businesses, including selling denim wear and luxury homes, said its net revenue grew 11% in the December quarter, matching an 11% rise in total expenses.
A two-fold revenue growth in the real estate and property development segment, and a 20% increase in both branded apparel and auto components helped the company counter flatness in its mainstay – textiles.
Raymond plans to open more than 500 stores in the next 3 years, on top of the more than 1,400 stores it runs across the country, managing director and chairman Gautam Hari Singhania, said.
Last year, in a major restructuring, the company sold its consumer line to Godrej Consumer and announced a foray into aerospace, defense and electric vehicles businesses, while adding heft to its engineering segment.
Peer retailer Arvind posted a quarterly profit earlier this week, as lower costs more than offset a drop in revenue.
($1 = 82.9799 Indian rupees)
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala)
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