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Wednesday, May 25, 2022

Relaxo Footwears' shares decline over 5% on weak Q4 earnings

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New Delhi, May 12 (Ajitweekly News) Shares of Relaxo Footwears declined over 5 per cent after the company reported weak operational performance in Q4FY22.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) margins of the company declined 596 basis points to 15.9 per cent from 21.8 per cent. It was due to a steep increase in input costs.

Besides, the company’s profit after tax fell 38 per cent year-on-year to Rs 63 crore from Rs 102 crore, reportedly on account of higher operational expenses and weak sales. Revenue from operations fell 7 per cent year-on-year to Rs 698 crore, as against Rs 748 crore in the same period last quarter.

The company’s margins were affected by the dual impact of substantial increase in raw material prices and normalisation of selling, marketing and admin expenses in FY22 in comparison to FY21 being the pandemic year, it said after the announcement of the quarterly results.

Incorporated in 1984, Relaxo is the largest footwear manufacturer in India, serving the nation for four decades. Its most popular brands Relaxo, Sparx, Flite and Bahamas are leaders in their space.

Having a pan India distribution footprint, Relaxo also operates a 350+ strong network of own retail outlets, with availability on all major e-commerce portals as well.

At 2.25 p.m., the shares traded at Rs 977, down 5.1 per cent from the previous close.

–Ajitweekly News

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