Gautam Singhania Addresses Divorce and Business Performance
Gautam Singhania, embroiled in a contentious divorce with Nawaz Modi Singhania, has asserted that his personal life does not impact his business endeavors. In an interview with the Economic Times, the chairman and managing director of Raymond Ltd. emphasized the company's robust performance since the pandemic and his unwavering focus on its growth.
Nawaz Modi Singhania had previously accused Gautam of leveraging his influence to remove her from the company's board. "They are using invalid grounds for my removal," she claimed in an interview with India Today. "Has the major shareholder promoter lost his confidence in me for doing my job, doing my duty? He has lost his confidence in me because I am calling him out."
Three privately held Raymond Group companies have already removed Nawaz Modi from their boards. While Raymond Ltd. has yet to propose her removal, she alleges Gautam is attempting to influence the decision. Gautam, in the ET interview, cited "loss of confidence" as the reason for the board action.
Meanwhile, Raymond Ltd. reported an 18% increase in fourth-quarter profit, driven by strong demand in its real estate segment. The company's consolidated profit rose to 2.29 billion rupees ($27.5 million) in the three months to March 31, compared with 1.94 billion rupees a year ago. Revenue from operations rose 21% during the quarter.
The real estate segment witnessed robust booking momentum, particularly after the launch of its first joint development project in Bandra, Mumbai. This segment accounts for 25% of the revenue mix and its revenue more than doubled during the quarter. The conglomerate's earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expanded to 19.2% from 17.3% a year ago. The company also reappointed Gautam Singhania as managing director for a five-year term effective from July 1, 2024.