Raymond Ltd is in advanced talks to acquire Deharde, a German aerospace engineering firm, as part of a strategic move into aerospace and space technology. The group raised Rs three point three billion (bn) through a recent preferential issue and had earmarked Rs two point four eight billion (bn) of that for acquisitions. Company officials and other people familiar with the matter have been cited as indicating that the target fits the identified sectors.

Deharde is a German precision engineering and manufacturing company whose clients include Airbus and Boeing. Raymond declined to comment on market speculation and the target had not responded to queries by the time of publication. The prospective deal remains at a negotiation stage and no binding agreement has been announced.

Raymond reported revenue growth of eight point two per cent in the March quarter to Rs six point zero three billion (bn) from Rs five point five seven two billion (bn) in the prior year. Earnings before interest, tax, depreciation and amortisation increased 26.2 per cent to Rs seven hundred and fifty seven million (mn) from the previous year. The company noted an expansion in EBITDA margin of two hundred basis points and a net cash surplus of Rs six hundred and eighty million (mn) at the fiscal year end. The firm remains net-debt free according to its published results.

Shares of Raymond Ltd were trading one point three per cent lower at Rs 592.65 apiece at the time of reporting, with the stock having gained six point three per cent in the past month and 39.6 per cent year to date. Analysts will watch how acquisition spending affects margins and cash levels, while the group continues to pursue opportunities in aerospace and space tech. The outcome of negotiations with the German target will determine the near-term strategic direction.