New Delhi: Relaxo Footwears on Wednesday has reported a jump of 97 per cent in its profit after tax (PAT) of Rs 44.19 crore in the second quarter ended September 2023 as against the PAT of Rs 22.40 crore in the same period of the last fiscal, it said in a regulatory filing.
The company’s total income grew to Rs 725.86 crore in Q2 FY24 as compared to Rs 675.31 crore in Q2 FY23. The robust recovery in volumes, mainly led by open footwear, served as the primary driver for revenue growth.
Its total expenses slightly increased to Rs 665.48 crore in Q2 FY24 from Rs 644.87 crore in Q2 FY23, as per the BSE filing.
The firm’s EBITDA stood at Rs 92 crore in Q2 FY24, recording a growth of 54 per cent, as against Rs 59 crore in Q2 FY23. Its EBITDA margin stood at 12.8 per cent in Q2 FY24, seeing an expansion of 392 bps, as compared to 8.9 per cent in Q2 FY23. Softening of raw material prices and better operational efficiencies have helped in the margin improvement, the company said in a statement.
The company said it has seen growth due to its strategic price corrections implemented last year, which has helped in reclaiming its market share. The stabilization of raw material prices, combined with significant expansion in sales volume, has led to an improvement in its margins.
Relaxo Footwears said it will continue to expand its distribution network with a special emphasis on new channels and e-commerce.
