Ladies and gentlemen, good day and welcome to Raymond Limited Q3 FY 2025 earnings conference call hosted by Antique Stock Broking Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Biplab Debbarma from Antique Stock Broking. Thank you, and over to you, sir.
Thank you. So on behalf of Antique Stock Broking, I would like to welcome all the participants in the Q3 FY 2025 conference call of Raymond Limited. Today we have with us from senior management of Raymond, Mr. S.L. Pokharna, who is President, Corporate Commercial; Mr. Amit Agarwal, Group CFO; Mr. Harmohan Sahni, Executive Director and CEO, Realty business; and Mr. Sunny Dhesa, Head Investor Relations. Without taking further time, I would like to hand over the call to Mr. Agarwal. Over to you, Amit sir.
Thank you, Biplab. Good evening, everyone. Thank you for joining us today for our third quarter fiscal 25 results conference call. At the outset, I would like to wish you a very happy new year to all of you and your family. I hope everyone got an opportunity to go through our financial results and investor presentation, which have been uploaded on the stock exchanges as well as the company's website. Now, before I start my discussion on our third quarter fiscal 25 performance, I would like to provide a brief update on the same. As we enter on the third quarter of fiscal 25, the Indian economy continues to demonstrate resilience and growth despite global economic uncertainty. India's GDP growth is projected to remain robust at around 6.5% for fiscal 25, driven by strong consumption and investment.
The government's focus on infrastructure development and manufacturing is expected to further bolster economic activity. Inflation is expected to moderate, aided by stable food prices and effective monetary policy by the Reserve Bank of India. Now, before discussing our performance for the third quarter of Fiscal 25, I would like to update you on the status of the demerger of our real estate business. I'm pleased to announce that we have received the creditors' as well as shareholders' approval earlier this week and remain on track for listing this business as a separate entity in the next six to seven months. The real estate market in Thane and Mumbai continues to exhibit robust growth, driven by a combination of infrastructural development, increased demand for residential and commercial spaces, and favorable government policies. In the Thane market, supply has kept pace with demand, ensuring a balanced market.
We continue to remain optimistic on both the markets of Thane as well as Mumbai and expect sustained growth supported by strong demand, strategic infrastructural development, and favorable market conditions. Investors and home buyers can look forward to a dynamic and promising market landscape in the near future. In the engineering business, the auto ancillary segment witnessed growth in the domestic market. However, export markets were weak for our auto ancillary and engineering consumable segment due to a slowdown in the European auto market as well as the Red Sea crisis. Further, we expect our aerospace business to grow post-resolution of the production issue faced by one of the largest aircraft manufacturers, which led to delays in the orders.
Raymond Limited delivered a steady quarterly performance in the real estate as well as in the engineering business, reporting a revenue of 985 crore in the third quarter of Fiscal 25, which reflects a growth of 36% on a year-on-year basis over the 727 crore, delivering an EBITDA of 169 crore in the third quarter of Fiscal 25 with a margin, EBITDA margin of 17.2%. Our EBITDA grew by 33% on a year-on-year basis. Overall, the company has reported the profit after tax from continuing operations of 71 crore, making a 71% increase compared to 41 crore in the previous year. Just wanted to bring to your attention that the above performance includes the acquisition of Maini Precision Products, completed in March 2024. Now, let me talk about the segmental performance.
With the real estate in the third quarter of fiscal 25, the company achieved a booking value in the real estate business to the tune of INR 505 crore, primarily driven by the demand for the Address by GS 2.0, Ten X Era, sale of retail shops in Thane, as well as JDA project of the Address by GS in Bandra. The construction momentum across all our projects, both in Thane as well as Bandra, is progressing well, demonstrating our commitment to timely delivery and adherence to high-quality standards. In all our projects, we are ahead of construction timelines, and a comprehensive update on the construction status of our projects is provided in our investor deck. We have launched a new tower in Thane during the quarter, and Raymond Realty also launched this residential tower by Address by GS 2.0 at Thane, which received an overwhelming response.
Further, we also witnessed continued traction in our Park Avenue High Street reimagined retail project launched in the previous quarter. They are the first of its kind, High Street retail in Thane, that will host premium aspirational brands. We at Raymond Realty offer affordable luxury apartments ranging from 1 BHK to 4 BHK that caters to multiple segments of society in a stated strategy to sell and construct fast, leading to quick completion of projects and faster revenue generation, which has resulted in a revenue of INR 488 crore in the third quarter of fiscal 25 versus INR 439 crore in the third quarter of fiscal 24, recording a growth of 11%. The segment reported an EBITDA of INR 116 crore in the third quarter of fiscal 25 compared to INR 97 crore in the third quarter of fiscal 24, which is a year-on-year growth of 19%.
EBITDA margin stood at 23.8% in fiscal Q3 fiscal 25 versus 22.1% in the third quarter of fiscal 24. Raymond Realty continues to focus on delivering projects within committed timelines. Given our track record of delivering projects ahead of timelines, which was well appreciated by our customers and resulted in increased customer confidence, total potential revenue from our current real estate business is approximately 32,000 crore plus, which includes 25,000 crore from Thane land parcel and 7,000 crore from the four JDAs which we have sent. We remain optimistic about the continued growth in the real estate market overall. Our pipeline of projects continues to remain robust, with several developments scheduled for launch in the coming quarter. As most of you are aware, Raymond completed the acquisition of Maini Precision Products on 29th of March 2024.
Starting from the first quarter of fiscal 25, the company has consolidated the performance of its engineering business to include the Maini Precision Products. The segment sales stood at INR 433 crore in the third quarter of fiscal 25 as compared to INR 217 crore in the third quarter of last fiscal. This performance was driven by the demand from the domestic market for the flexplates, which is an auto component. However, the engineering consumables and auto component category continued to be impacted by weak demand in the export sector. During the quarter, the business reported an EBITDA margin of 12% in the third quarter of fiscal 25 versus 13.8% in the third quarter of fiscal 24, mainly due to changes in the product mix.
In order to get more efficient and benefit from synergies, we are consolidating auto components and engineering consumables business into a new subsidiary of Raymond Limited, where the aerospace will be another subsidiary via a scheme of arrangement which is expected to be completed in the next three to four months. Now, let me talk about the debt and the cash position at Raymond Limited. We continue to remain a net debt-free business with a net cash surplus of INR 696 crore and an increase of net cash of almost INR 194 crore since March 2024. The total gross debt stands at INR 886 crore, which includes the debt taken for the acquisition of the Maini Precision Products business as well as the existing working capital facilities at Maini Precision Products business.
Additionally, we maintain strong liquidity with cash and cash equivalents of INR 1,582 crore as of 31st December 2024. Now, let me give you an update on the demerger. The proposed real estate demerger is well on track as we have received the stock exchange approval and shareholders' and creditors' approval. Upon completion of the process, the new entity will seek automatic listing. According to the scheme of arrangement, each shareholder of Raymond Limited will receive one share of Raymond Realty Limited for every share held in Raymond Limited. This will position Raymond Realty to pursue its growth trajectory as an independent, pure-play real estate business. We expect to complete the listing in the second quarter of Fiscal 26.
In the engineering business, as mentioned earlier, two new subsidiaries of Raymond Limited will be created through a scheme of arrangement, one focused on aerospace defense and the other on auto components and engineering consumables, each charting its own path for growth and primary objective of value creation. Currently, we have filed the restructuring scheme with the NCLT. Now, let me consider about the current status and the operations and the outlook for the business. In the real estate market, residential real estate market continues to demonstrate sustained demand. We are focused on future expansion through a joint development route and targeting 20%-25% growth in booking value year-on-year basis.
Further, we are currently in discussions to finalize a few new JDAs as we continue to expand our operations. As far as engineering segment is concerned, the aerospace business is showing signs for growth, which got impacted by ongoing production issues faced by one of the largest aircraft manufacturers, leading to delays in dispatches. However, with the post-addressing concern, we have witnessed signs of recovery. Additionally, recent softness in the auto component sector due to weaker market may impact the growth in the near term.
Looking forward, we remain optimistic about our growth prospects. Our diversified business portfolio, strong market position, and strategic initiatives will continue to drive value for all of our stakeholders. And thank you once again for joining, and we will be happy to take your questions. Operator?
Yes, sir.
Please ask for the question.
Thank you very much. We will now begin the question and answer section. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use the handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Garvit Goyal from Nvest Analytics. Please go ahead.
Hi, am I audible?
Yes, yes, you are audible.
Good evening, sir. Coming back for a good set of numbers. My first question is on engineering segment. Can you share the demand environment that you are witnessing in engineering segment, like the kind of order flows and which subsegment is contributing meaningfully to our growth in this segment, and where are we facing the challenges? Okay, okay.
Yeah, I can take that. Yeah, please. Okay. So the first thing is that in the last two, three quarters, our efforts have been to look at all the businesses in a more integrated and combined manner and combined synergies that we have across the businesses. And in doing so, we also recently had an inauguration of some capacity expansions. We do see that the last two quarters were a little bit impacted, but I think the Q4 is definitely showing signs of recovery in terms of the market.
It will take a little bit longer in some of the product ranges, but definitely the trend is going to get better. We will see better exports in Q4 as well in some of the markets. We have, in particular, seen that the hybrid market in the European region has grown while the EV markets have slightly been dampened. And we have a lot of products in the hybrid market, and we're going to see that growth come this quarter as well. So overall, I would say we are in the right direction of growth in terms of that. In terms of our own tools and hardware business, also, we are seeing a lot of traction. We are looking at the introduction of several new products into this section as well. And therefore, we would see better numbers in Q4.
And you didn't mention about the order flows. I'm trying to understand in engineering segment, what are those key areas? It can be Aerospace or Defense. What are those key areas from where we are seeing the biggest order flows that are going to give us the visibility for the upcoming quarter?
So the order flows are definitely you see what happens. Most of our contracts are long-term contracts between three and five years, sometimes 10 years. So the orders are available. Two, three things happen. Depending on the market pull, you start to get more orders or less orders depending on the market pull. The main thing is to ensure that the new product development is at a high, which is what we are targeting at, where the new products are developed quickly and those further ramp up. And therefore, you get new products, new markets, and new ramp-ups. And that's where the major business comes from.
Boeing strike is called off, so there are inventories which will be eaten away over the next two, three months, and we are already seeing forecast numbers from April to be much higher, so we generally receive a 12-month forecast so we can see where the markets are, and in some of the areas, we are also getting an additional market share, so let's say our market share was 30% or 35% on some products. We're already seeing that they will take us to 60% or 65%, so in those cases, we will be able to increase just our current production significantly, especially in aerospace, which will also show us better numbers. Also, in the meantime, we are seeing a much healthier RFQ pipeline, which means that the conversion, once we convert those, we will also see healthy orders going forward.
So all trends point towards a much better Q4, but also a much better next year.
Understood, sir. And secondly, on the real estate segment, are you people witnessing any kind of slowdown in terms of infrastructure CapEx from the government side in the upcoming budget, or do you still believe government is continuing to increase the allocation towards this area?
I think that question is best answered by the government itself. But whatever we have seen in terms of lead indications, as of now, we don't see any kind of slowdown in decision-making for infrastructure projects. But the rest is, I think, probably the government officers are best suited to answer this.
Understood, sir. Thank you very much, sir. This is from my side. All the best for the future.
Thank you. A reminder to all the participants, you may press star and one to ask questions.
Hello? Hello.
Yes, we can hear you.
Okay. Hi. Good afternoon, everyone. Sir, related to real estate, I just have two questions. First question is regarding demand side. I personally am very optimistic about real estate demand. But on ground, you are hearing some mixed signals. So I just wanted to understand how is the demand situation on ground and how is January? Is there any demand things moderating? Do you see any sign of demand moderating in Thane, MMR, Mumbai, or any other market in MMR? That's my first question.
So I mean, to answer your questions clearly, we have not seen any speed bumps in any of our projects so far. Well, you read the same media reports as we do. So media currently is giving mixed reports. Some people are saying that it's gung ho and very bullish. Some people are saying it's slowing down. I don't know. Based on who you read, which paper you read, you form a view, but on ground, we have not seen any slowdown in any of our projects. We had given a guidance of about 20% booking value growth for the current year over the last year, and so far, we are on target on that and continuing to be even in January also, so I mean, that's our experience.
So that's very good news. And sir, I believe you have launched a new project, GS2 in Thane. How is the response so far in that project?
Yeah, so we launched one more tower in our GS2, which is Tower E, which we launched recently, less than a month ago, and 30% of that inventory is approximately already sold on launch itself, so the response has been good.
What was the ticket size of those typical ticket size of that launch, that Tower E?
Ticket size, meaning per apartment, you're saying?
Yes, sir. Yes, sir. Yes, sir.
Yeah, approximately INR 3 crore, depending on which inventory, which floor, where you are at. But on an average, approximately thereabouts.
Oh, that's a great news, sir. Thank you, sir, and all the best, sir.
Thank you.
Thank you. A reminder to all participants, you may press star and one to ask question. The next question is from the line of Ishita Lodha from SVAN Investments. Please go ahead.
Hi, sir. Thank you for the opportunity. My question is with respect to the real estate business. So how is the approval process shaping up? Is it becoming more harder to get approvals to launch the towers, or has it eased out in the last few months?
Actually, there has been no change event for us to say that before or after because it's the same government which has continued. So there is no significant change anywhere. So I mean, I really don't know how to answer this as to what period should I take before or after. I mean, we haven't faced any difficulty in any of the approvals so far. I mean, we in any case, as a matter of philosophy, do not go for any special dispensations from the government. Everything is as per policy. When we take on a project, it's under the current policy itself. So we haven't seen any difficulties in that.
Okay. Thank you.
Thank you. A reminder to all the participants, you may press star and one to ask question. Is there no further questions from the participants? I now hand the conference over to Mr. Amit Agarwal, Group CFO, for closing remarks. Over to you, sir.
Thank you very much. Look forward to talking to you in the next quarter. Thank you.
Thank you. On behalf of Antique Stock Broking, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.