Raymond Ltd Q4FY23 PAT down -26.2% yoy at Rs194crore due to deferred tax credits in base year

Raymond Ltd reported 9.81% growth in total revenues for the March 2023 quarter on consolidated basis at Rs2,150cr. On a sequential basis, the revenues were up down by just about -0.83%. In terms of segmental sales, Raymond reported apparel, garmenting and auto parts. However, the company saw lower sales on the real estate business. In terms of contribution to the operating profits, apparel, garmenting and real estate contributed on the positive side.

The company reported lower profits on account of Rs97 crore deferred tax benefits from the investments written down which was recorded in the March 2022 quarter. This enhanced the base and reduced the profits. In both the quarters, the company had taken an exceptional write-off of close to Rs100 crore on account of write-downs of inventories and receivables.

Financial highlights for Mar-23 compared yoy and sequentially

Since the net margins were impacted by the deferred tax credits in the base quarter, the operating profits would give a better picture. There was an 8.8% growth in operating profits at Rs328 crore while the operating margins stayed stable at around the 15.12% levels. However, net margins fell sharply by over 440 bps on yoy basis.