Resurfacing a January 2017 report: Raymond’s store renovations drove 20%+ sales growth
Raymond had reported 12% consolidated revenue growth to Rs.1,553 crore in the quarter ended December 2016, with net profit more than tripling year on year to Rs.25 crore. Renovated stores delivered sales growth of more than 20%.
The development
Raymond reported 12% consolidated revenue growth to Rs.1,553 crore in its latest quarter. Store renovations drove 20% plus sales growth, while net profit more than tripled to Rs.25 crore y-o-y. The article expects return ratios to improve from FY18 and targets Rs.814 in CY17.
The numbers
- past decade or so
- Rs.468 crore in 2008
- Rs.15593.28 crore, as on December 19, 2016
- Rs.192 crore
- Rs.1,749 crore
- Rs.1,860 crore on March 2008
- Rs.2,913 crore as on December 19, 2016
- Rs.1,322 crore in FY08
- Rs.2,793 crore in FY16
- around 91 years
- early 2000
- 2013
- 12% to Rs.1,553 crore
- 12%
- 10%
- 7% volume growth
- 23%
- 32% volume growth
- 2%
- nearly 60% new customers
- 20% plus sales growth
- 15% to Rs.1,314 crore
- 3% y-o-y to Rs.270 crore
- 5.6% of revenue
- more than tripled to Rs.25 crore y-o-y
- 1.06 times versus 1.11 times y-o-y
- 80 bps
- third quarter
- around 28%
- FY18 onwards
- Rs.814 in CY17
Why it matters to operators and investors
The renovation-led sales uplift makes Raymond’s store-refresh strategy worth benchmarking when evaluating retail partnerships or expansion opportunities.
What to watch next
- Renovated-store sales growth and the number of stores included in that cohort.
- Quarterly consolidated revenue growth relative to the 12% reported.
- Operating margins, renovation expenditure, and operating cash flow.
- Profit growth after comparison with the unusually low prior-year base.
- Track the share of stores renovated and whether management plans to accelerate or moderate the rollout.
- Compare like-for-like growth at renovated and non-renovated stores over subsequent quarters.
- Assess whether revenue growth converts into stronger operating profit and cash generation after renovation costs.
- Watch for evidence that performance is broad-based across the business rather than concentrated in refreshed stores.
The counter-case
The headline overstates what the figures establish: renovated stores grew sales by more than 20%, but the number of renovated stores, comparison base, and contribution to total sales are unspecified. Consolidated revenue grew a more modest 12%, while profit of Rs.25 crore remains small in absolute terms and could reflect a low prior-year base or one-off factors rather than durable operating improvement.