Gautam Singhania, chairman of Raymond Group, at the launch of realty business on April 3, 2019. (Image: BloombergQuint)

Raymond Expects Realty Project To Deliver Positive Cash Flows For Next Five Years

Raymond Ltd.’s first realty project in Thane is expected to generate positive cash flows during its life cycle of five years, according to its Chief Financial Officer Sanjay Bahl.

“The formal public launch is expected to happen by the end of first week of May. Close to 2,800 flats will be on offer,” Bahl told BloombergQuint in an interview. “We are focused on ensuring the project remains fairly debt free and delivers positive cash flows during the course of this project of over five years.”

The operating margin for the branded-textile segment in the March-ended quarter and fiscal year 2018-19 was impacted by “unprecedented rise in wool prices” and a one-time wage settlement, he said. “Now with these factors behind us, we will expect better margin and profitability this financial year due to the recent price hike undertaken.”

Key Highlights: (YoY)

  • Revenue up 11 percent to Rs 1,808.7 crore.
  • Net profit up 27.1 percent to Rs 67.5 crore.
  • Ebitda up 10.9 percent to Rs 167 crore.
  • Operating margin flat at 9.2 percent.

Shares of the company declined 4.8 percent intraday to Rs 735 apiece in today’s session.

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