Raymond Lifestyle Q4 Results: A Candid Look at the Rs 45-Crore Loss

Raymond Lifestyle Ltd. has recently reported a consolidated net loss of Rs 44.95 crore for the March quarter, painting a rather grim picture for this prominent player in the lifestyle industry. This setback is attributed to a combination of weaker consumer demand and disruptions caused by cyberattacks that left a significant mark on sales.

Financial Overview: A Year of Contrasts

Comparatively, the firm had posted a net profit of Rs 235.58 crore during the same quarter last year. A striking shift, indeed! The revenue from operations also suffered a decline of 11%, hitting Rs 1,494.15 crore, down from last year’s Rs 1,684.55 crore.

The Impact of Inflation and Cyber Threats

According to their regulatory filing on Monday, the company’s EBITDA stood at Rs 99 crore, translating to an EBITDA margin of 6.3%. This downturn was significantly affected by soaring inflation rates and a lack of consumer interest. To make matters worse, a ransomware attack disrupted operations, raising the stakes on an already challenging environment.

The company’s IT team, with vital support from cybersecurity experts, valiantly contained the attack, but temporary system outages and resulting supply chain delays severely impacted sales and overall profitability.

A Closer Look at the Segments

Textile Woes

In the textile segment, which includes the branded fabric business, there was a staggering 21% drop in revenue, bringing it down to Rs 727.35 crore. This plummet can primarily be attributed to the ransomware incident and ongoing weak demand.

Apparel Segment Challenges

Similarly, the branded apparel segment faced hardships, with revenue declining 4.26% to Rs 391.20 crore. The report indicated that this segment suffered an EBITDA margin of just 0.4%, a sharp contrast to the 13.5% margin recorded in Q4 of fiscal 2024. The decline was exacerbated by upfront investments aimed at expanding retail store presence and an unfavorable channel mix.

Garmenting Stability Amidst Uncertainty

On a slightly brighter note, the garmenting segment reported stable revenues, almost flat at Rs 248 crore. However, this was still affected by cautious consumer behavior as customers were apprehensive over impending US tariff announcements.

Annual Performance: A Mixed Bag

Raymond Lifestyle’s total income for the quarter, including other income, reached Rs 1,579.77 crore, reflecting an 8.5% decline. Looking at the fiscal year that ended on March 31, 2025, the company posted a modest profit of Rs 38.19 crore, yet overall, its total consolidated income for fiscal 2025 fell by 5% to Rs 6,689.80 crore.

What Lies Ahead

As Raymond Lifestyle navigates these turbulent waters, the focus will inevitably shift to strategic recovery and recalibrating operations to mitigate the effects of unforeseen disruptions like cyberattacks and fluctuating consumer behavior.

In a world where adaptability is crucial, how the company responds to these challenges will determine its future trajectory. Investors and stakeholders alike will be watching closely as Raymond Lifestyle strives to turn its setbacks into opportunities for growth.

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