Any current/future new fundraising through debt or equity?

Currently, no significant capital raising is expected for at least the next two years due to strong cash flow visibility from existing projects and adequate cash reserves (INR500+ crores). The real estate business is focusing predominantly on Joint Development Agreements (JDA), which are asset-light and require limited upfront investment. Peak investment per project is typically INR300-350 crores, which gets replenished as projects launch and progress. The company prefers to have sufficient cash surplus to meet exigencies and avoid project delays. While project debt is a possibility for certai

Any current/future capex/capital investment/strategic investment?

Future growth in real estate will be predominantly through asset-light Joint Development Agreements (JDAs); minimal outright land purchases expected unless very attractive opportunities arise. Peak investment for a typical INR2,000 crore project is estimated at INR300-350 crores, utilized productively in ongoing and upcoming projects. Real estate business currently has cash of ~INR500 crores supporting its journey with no significant capital raising expected in the next two years. Engineering business aims to add capacity incrementally with smaller capex to double revenues over the next

Future growth expectations in sales/revenue/volumes?

Real estate business expects revenue potential of INR32,000 crores over 7-8 years, including Thane land (INR25,000 crores) and four JDAs (INR7,000 crores). Annual real estate revenue potential estimated at INR3,500-4,000 crores, with price increases expected over the next 7-8 years. Real estate sales strong with 65% inventory sold in Thane and rapid sales in Bandra (100 apartments in 30 days). Engineering business aims to double revenue from current INR1,800 crores over next 4-5 years, driven by aerospace, defense, auto components, and consumables segments. Aerospace-defense segment growing ra

Future growth expectations in earnings/operating earnings/profits/EPS?

Engineering business is expected to double revenues over the next 4-5 years, driven by aerospace, defense, auto components, and engineering consumables (Page 6). Aerospace and defense segment is growing rapidly at 25%-30% year-on-year with higher margins, enabling faster EBITDA growth (Page 6). Engineering business currently has a run rate of INR300 crores with 25%-27% EBITDA margin; expects significant growth in 2-3 years (Page 18, Page 15). Real estate business (including Thane land and JDA projects) has potential revenues of INR32,000 crores over 7-8 years with 24%-25% EBITDA margin and 25%

Current/ Expected Orderbook/ Pending Orders?

The overall engineering business is currently in the range of INR1,800 to INR1,900 crores in turnover. The engineering segment includes aerospace-defense (growing at 25%-30% YoY), auto components (INR1,200 crores, growing at 10%-15%), and engineering consumables (INR500 crores, growing at 8%-12%). No specific outstanding order book numbers mentioned, but the business has good visibility. Aerospace-defense and auto segments show strong growth potential, expected to double revenues in 4-5 years. Real estate has a strong revenue potential pipeline with INR32,000 crores GDV spread over 7-8

Raymond LtdQ2 FY25

Raymond Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹633P/E: 0.8Market Cap: ₹4.2K Cr

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Real estate business expects revenue potential of INR32,000 crores over 7-8 years, including Thane land (INR25,000 crores) and four JDAs (INR7,000 crores).
→Annual real estate revenue potential estimated at INR3,500-4,000 crores, with price increases expected over the next 7-8 years.
→Real estate sales strong with 65% inventory sold in Thane and rapid sales in Bandra (100 apartments in 30 days).
→Engineering business aims to double revenue from current INR1,800 crores over next 4-5 years, driven by aerospace, defense, auto components, and consumables segments.
→Aerospace-defense segment growing rapidly at 25%-30% year-on-year.
→Continued expansion through new projects in real estate and capacity additions in engineering machining.
→Robust order book and positive outlook in aerospace and defense sectors supporting faster growth and improved margins.

Margin guidance

Category 3

→Engineering business is expected to double revenues over the next 4-5 years, driven by aerospace, defense, auto components, and engineering consumables (Page 6).
→Aerospace and defense segment is growing rapidly at 25%-30% year-on-year with higher margins, enabling faster EBITDA growth (Page 6).
→Engineering business currently has a run rate of INR300 crores with 25%-27% EBITDA margin; expects significant growth in 2-3 years (Page 18, Page 15).
→Real estate business (including Thane land and JDA projects) has potential revenues of INR32,000 crores over 7-8 years with 24%-25% EBITDA margin and 25% IRR (Page 8, Page 12).
→Real estate projected to generate INR4,000 crores annual revenue in 3-5 years (Page 8).
→Lifestyle business will operate as a debt-free entity with clear segment reporting improving financial clarity (Page 14).
→Overall, strategic initiatives and demergers aim to unlock significant shareholder value and improve operational focus (Page 4).

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Fundraise plans

Yes

→Currently, no significant capital raising is expected for at least the next two years due to strong cash flow visibility from existing projects and adequate cash reserves (INR500+ crores).
→The real estate business is focusing predominantly on Joint Development Agreements (JDA), which are asset-light and require limited upfront investment.
→Peak investment per project is typically INR300-350 crores, which gets replenished as projects launch and progress.
→The company prefers to have sufficient cash surplus to meet exigencies and avoid project delays.
→While project debt is a possibility for certain costs, the company emphasizes securing all approvals upfront to avoid stopping projects mid-way.
→Equity fundraising or debt raising may be considered in the future if the business scale or market conditions require, but no immediate plans have been indicated.

Order book

Yes

→The overall engineering business is currently in the range of INR1,800 to INR1,900 crores in turnover.
→The engineering segment includes aerospace-defense (growing at 25%-30% YoY), auto components (INR1,200 crores, growing at 10%-15%), and engineering consumables (INR500 crores, growing at 8%-12%).
→No specific outstanding order book numbers mentioned, but the business has good visibility.
→Aerospace-defense and auto segments show strong growth potential, expected to double revenues in 4-5 years.
→Real estate has a strong revenue potential pipeline with INR32,000 crores GDV spread over 7-8 years, INR7,000 crores JDA projects recently signed.
→Real estate pre-sales stand at INR2,300 crores with 6 million sq. ft. under construction.
→Focus is on JDA models for real estate with careful project evaluation to ensure 25% IRR target.

Capex plans

Yes

→Future growth in real estate will be predominantly through asset-light Joint Development Agreements (JDAs); minimal outright land purchases expected unless very attractive opportunities arise.
→Peak investment for a typical INR2,000 crore project is estimated at INR300-350 crores, utilized productively in ongoing and upcoming projects.
→Real estate business currently has cash of ~INR500 crores supporting its journey with no significant capital raising expected in the next two years.
→Engineering business aims to add capacity incrementally with smaller capex to double revenues over the next five years, focusing on higher-value aerospace and defense components and assemblies.
→Aerospace and defense subsidiary demerger expected by March 31, 2025, facilitating focused investment and growth.
→No plan for JK Files IPO; engineering business consolidating via demergers under Raymond Limited to streamline investments.
→Overall capex focused on operational efficiency, product mix enhancement, and expanding engineering capacity with innovation.

How does Raymond Ltd rank vs peers in ?

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1Raymond Ltd

Rev 3Mar 3

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