Raymond Group, which posted its highest-ever profit in a decade in Q3 FY22, is looking at closing the fiscal with an “upward growth trajectory,” said the company chief Gautam Hari Singhania. The group is looking for a larger play, specifically in the real estate and FMCG businesses in the next fiscal even as it grows the garments unit in the international market.

In the realty space, the conglomerate plans to develop 1, 2 and 3 BHK properties in Maharashtra. Currently, it is developing two properties in Thane. “We are focussing on 1, 2 and 3 BHK properties. That is where we want to go in large-scale projects. We are focussing on Maharashtra but if we get a minimum size property outside, we will explore it. We are not looking at commercial properties for now,” Singhania told BusinessLine.

The FMCG arm that makes perfumes and condoms has also entered into the shampoo and soap segment. For the coming fiscal, Raymond plans to develop the entire bath and body range.

Reaping profits

This comes on the back of a multifold jump in the 97-year-old company’s net profit to ₹101.07 crore compared to ₹22.18 crore in the year-ago period. Its revenue from operations was up 48.25 per cent to ₹1,843.39 crore during the quarter as against ₹1,243.44 crore in the previous fiscal.

According to the company, it had reported the “highest profitable quarter in the last 10 years” and its revenue is now “100 per cent of pre-Covid levels”. Its FMCG, realty and shirting businesses contributed the most to this profit.

Covid impact

Singhania who is the MD of the group said the company has proved itself to be extremely resilient. Despite being hit hard due to the pandemic, the company bounced back very quickly, and posted profits.

He explained that the pandemic put a lock on weaker businesses and taught the stronger players to withstand the problem better. “That is one reason why you are seeing the numbers you are seeing. We looked at the cost structure, rejigged models. Also, as I had predicted, people will come back to shop once the pandemic is over, and they did.”

Speaking about the company’s plans to tap the international textile market, Singhania said the Ethiopian garment plant is doing exceptionally well. “Its order books are full for the next six months, and the US demand is back. I think we will be surpassing the pre-Covid sales coming from the States. However, US will also get impacted because of the Russia  Ukraine war but the demand is pretty strong.”

‘Always an opportunity’

The Raymond Group is a legacy company incorporated in 1925. It will complete its 100th year in 2025. Singhania said the company’s aim is to grow its existing businesses substantially.

“If India has to be built, there will always be an opportunity, and we want to be a part of it,” he said, adding, “I always remember the famous sentence by the Prime Minister, Jab bhi dekho, kaam chal raha hai, ye work in progress hai, ye mera Bharat ban raha hai. (Whenever you see, everything is always under construction. I say, it’s work in progress, my India is in the making,).”

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