Raymond will spin off its lifestyle division into Raymond Lifestyle in the first quarter of the current financial year and expects the new entity to be listed within the next two to three weeks.
“They have announced various corporate actions that will enable them to demerger the lifestyle business, which will likely be listed in the next two to three weeks, creating a pure lifestyle business with no net debt, which again is very attractive,” Raymond's group CFO Amit Agarwal said.
Agarwal said the weak first-quarter performance was due to a combination of seasonal factors such as a drop in weddings and extreme weather, as well as the impact of the general election.
However, the upcoming festive and wedding season is expected to drive growth.
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The company has also identified opportunities arising from recent challenges in Bangladesh's garment industry.
Bangladesh traditionally exports garments worth about $50 billion a year and Raymond, which operates in a sector worth about 8-10 billion rupees, sees an opportunity to grab a piece of this market.
Agarwal predicted that Rs 800-1,000 crore of garment exports from Bangladesh could shift to India, strengthening Raymond's garment business.
In the real estate sector, Raymond has seen remarkable success with its land bank in Thane and is expanding its projects beyond Thane and Mumbai.
Agarwal highlighted that the company's Bandra project has already recorded strong sales, with over 50 per cent of the launched inventory being sold within the first 45-50 days, reflecting strong customer interest.
The company's engineering division, which includes auto parts and aerospace defense, is performing very well.
Agarwal said the aerospace and defence sector has been growing steadily, registering at least 20-25 per cent increase annually.
The company's shares, which have a market capitalisation of Rs 12,555 crore, have fallen 3 per cent in the past one year.
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