Relaxo Footwears posted better than expected Q4 performance with revenues growing 38 percent, mainly driven by the easing of restrictions.
Profitability has doubled on a year-on-year basis driven by operating leverage.
The second wave of COVID-19 would have impacted the demand in the near-term, but with the number of COVID-19 infections coming down recently, and several states beginning to unlock along with an improvement in the number of vaccinations, it would definitely contribute to a significant improvement in mobility, leading to a strong recovery in footwear demand, going ahead.
Relaxo’s product portfolio of open footwear and presence in the value segment is more suitable in times of COVID-19, where most of the consumers are working from home and there is a tendency to downtrend.
In the special segment of ‘Moneycontrol Pro Ideas For Profit’, moneycontrol.com’s Bharat Gianani gets more details on the company’s performance, going forward.
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