India's Raymond profit jumps on aero, defence component demand; shares surge

Jan 27 (Reuters) - India's Raymond RYMD.NS reported a 78% rise in quarterly profit on Tuesday, supported by robust demand for its aero and defense components.

Shares climbed as much as 13.6% after the firm said its profit from continuing operations rose to 71 million rupees ($773,831.84) in the quarter ended December 31 from 39.9 million rupees a year ago.

The performance was driven by higher production demand from major aerospace clients and tier-1 companies, Raymond said in a statement, without disclosing the names.

The aerospace and auto parts supplier also said momentum is strong across domestic and international markets for its precision tools and auto components segment, as global companies pursue China‑plus‑one strategies to diversify their supply chains.

While aerospace will remain the growth driver, analysts expect the auto components and engineering tools businesses to also grow faster than in the past, supported by rising exports from India and the company's presence in electric and hybrid vehicle platforms.

The company's quarterly revenue from operations grew 20% to 5.57 billion rupees through December, led by 49% growth in its aerospace and defense segment.

Raymond Group, the Indian conglomerate best known for its textiles, apparel and consumer businesses, has demerged its real estate and apparel arm into listed companies, as part of an effort to streamline its portfolio.

($1 = 91.7512 Indian rupees)