Business

Raymond Lifestyle Reports ₹45 Crore Q4 Loss Amid Weak Demand And Cyber Disruption

Raymond Lifestyle posted a consolidated net loss of ₹45 crore for the fourth quarter of FY25, a stark contrast to the ₹236 crore net profit recorded in the same period last year.

The company attributed this downturn to falling revenues, eroding margins, and increased operating costs.

Revenue from operations dropped by 11.3% year-on-year (YoY) to ₹1,494 crore in Q4 FY25, down from ₹1,684 crore in Q4 FY24.

This decline stemmed primarily from subdued consumer demand and operational setbacks following a ransomware attack, as stated in the firm’s stock exchange filing.

Leadership Comments On Performance And Outlook

Executive Chairman Gautam Singhania acknowledged the tough quarter, citing external challenges.

“Our performance this year was under pressure, primarily due to weak consumer demand and challenging macro-economic conditions,” he said.

However, he reiterated the company’s long-term focus, stating that Raymond Lifestyle remains committed to building a sustainable and profitable enterprise.

Margins Shrink As EBITDA Drops Sharply

Earnings before interest, tax, depreciation and amortisation (EBITDA) plunged by 94.5%, falling to ₹13.6 crore from ₹246.2 crore a year ago.

Consequently, the EBITDA margin shrank drastically to 1% from 14.6%.

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Rising costs also weighed heavily on the bottom line. Total expenses for the quarter rose to ₹1,625.08 crore, marking a 4.45% increase over ₹1,555.8 crore in Q4 FY24.

Textiles And Apparel Segments See Steep Margin Erosion

The branded textile segment, historically a key contributor to Raymond’s revenue, saw a 21% drop to ₹727 crore in Q4 from ₹920 crore the previous year.

The segment’s EBITDA margin contracted to 7%, down from 21.8%, primarily due to reduced operating scale and demand weakness.

The branded apparel division reported revenue of ₹391 crore in the March quarter, slightly lower than ₹409 crore in Q4 FY24.

Here too, profitability suffered, with EBITDA margins plummeting to just 0.4%, compared to 13.5% a year earlier.

This decline was attributed to increased investments in retail expansion and an unfavourable sales channel mix.

Raymond Lifestyle’s Q4 performance underlines the tough landscape for apparel and textile players navigating post-pandemic consumer shifts and digital threats.

Despite the setbacks, the company has indicated its intent to weather the current climate and focus on long-term growth.

Richa Kaushik

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