The company also took an aggressive price correction in September 2022, to be competitive in the market.
Buy / Sell Relaxo Footwear share
Recommended ArticlesView All
Decoding multi-year health insurance policy — What is it and what are key benefits?
IST3 Min(s) Read
View | Pakistan Election: Will Imran Khan's changed tack from long march to resignations to snap poll work?
IST5 Min(s) Read
View | G20 Presidency: India can shape global Web3 narrative
IST6 Min(s) Read
Shares of Relaxo Footwears hit a new 52-week low after a weak earnings report for the September quarter.
The company reported declines in its revenue, EBITDA, margins, and consolidated profits for the September quarter. The footwear major’s revenue declined by 6.3 percent year-on-year to Rs 670 crore.
EBITDA halved year-on-year to Rs 59 crore. Consolidated profit after tax also took a massive hit of 67.4 percent at Rs 22 crore compared to Rs 69 crore in the same period last year.
The company attributed the weak results to a decline in the volume of categories serving the masses and increasing input costs. Consumers were facing inflationary pressures which affected their affordability and they started moving to price-competitive options, according to Relaxo Footwears.
The company also took an aggressive price correction in September 2022, to be competitive in the market. Relaxo plans to clear all of its high-cost inventory by the end of next quarter. Higher raw material pricing also ate into margins.
Relaxo’s shares have underperformed over the past year, with prices going down by around 30 percent.