04 November 2022, Mumbai:
For the second quarter Relaxo Footwear’s net profit fell by 67 per cent. This was because of volume decline and high raw material prices. Revenue from operations was down six per cent. This was a result of a decline in volumes of the categories serving the mass segment that were under inflationary pressures with reduced affordability. Total expenses were up two per cent in the second quarter. Ebitda was at Rs 59 crores as compared to Rs 117 crores in the corresponding period of the previous year. Ebitda was under pressure due to high raw material prices. Ebitda margins declined by 748 bps to eight per cent in the second quarter from 16 per cent in the previous year’s quarter.
Relaxo registered good growth in revenue on the back of demand recovery due to opening of stores across geographies, a strong rebound in economic activities resulting in business returning to pre-Covid levels. Relaxo is firmly and resolutely on a journey to accelerate its growth further by using a diverse portfolio, enhanced distribution network and deployment of resources in innovation, brand promotion and continuing to follow a customer-centric approach. Relaxo, based in New Delhi, is one of the leading footwear makers in India.
