Raymond Limited — PPTs, 12-05-2025: Investor Presentation

1. Financial Highlights:

Raymond’s engineering business reported ₹528 Cr revenue in Q4FY25, up 126% YoY, with EBITDA at ₹81 Cr (+121%) and stable margins around 15.3%. FY25 engineering revenue was ₹1,824 Cr (+112%) with EBITDA of ₹237 Cr (+96%). The real estate segment posted ₹766 Cr revenue (+13%) and ₹194 Cr EBITDA, maintaining a 25.3% margin in Q4. FY25 real estate revenue reached ₹2,313 Cr (+45%) with EBITDA growth of 37%. Consolidated revenue rose 95% in Q4 to ₹601 Cr and 85% for FY25 at ₹2,105 Cr, with EBITDA margins of 16.4% (Q4) and 20.9% (FY25). The company remains net debt-free.

2. Strategic Initiatives & Growth Drivers:

Growth in real estate is driven by a capital-light JV development agreement model, now including six projects worth ~₹6,800 Cr beyond the Thane land parcel. Engineering growth benefits from strong demand in electric/hybrid vehicle components and aerospace, targeting recovery post supply-chain issues with a major aircraft OEM.

3. Business Developments:

The real estate business has been demerged and is preparing for a separate listing. Engineering expansion includes the acquisition of Maini Precision Products, servicing auto, EV, aerospace, and defense sectors with a broad portfolio of high-precision components. The real estate pipeline features multiple residential towers recording high sales velocity.

4. Market Position & Competitive Advantage:

Raymond commands over 60% market share in steel files and leads in ring gears and flex plates. It holds significant shares in EV and aerospace segments, underpinned by long-standing customer relationships up to 50 years. Realty benefits from a strong brand portfolio across premium and luxury segments and controls ~100 acres in Thane with over ₹25,000 Cr development potential.

5. Investor Implications:

Raymond’s diversified businesses offer positive growth potential, balancing steady real estate cash flows with a fast-growing engineering vertical focusing on EV and aerospace. The real estate demerger and increasing JDA pipeline reduce capital intensity. Key risks include aerospace demand recovery and macroeconomic factors affecting real estate sales, but overall positioning supports sustained value creation.