Metro Brands reports best fourth quarter to date with post-tax profit of Rs 68 crore

By

Isabelle Crossley

Published
May 26, 2022

Footwear retailer Metro Brands Limited reported its highest performing fourth quarter to date in the 2022 financial year with a profit after tax of Rs 68 crore and a 24.5% increase in revenue.

Metro Brands reported a 45.5% year-on-year increase in earnings before interest, tax, depreciation, and amortisation and a 50.7% increase in its profit after taxes during the fourth quarter of the 2022 financial year, ET Bureau reported. 

“The profitability of our Q4 this year is actually better than the profitability of Q3,” Metro Brand’s CEO Nissan Joseph told ET Retail in an interview. “So we're quite pleased with our Q4 results. And on top of that, we were impacted by Omicron in Q4. I think when we look behind the numbers, it was a stellar quarter on a standalone basis and it was the best fourth quarter we have had so far.”

The brand increased the prices of its footwear in response to rising raw materials and logistics costs. However, this has not led to any decrease in consumer demand, according to Joseph. The fourth quarter also maintained the same margin at the same rate as the third quarter despite being a time to focus on stock clearance.
 
Describing the brand as one of the most profitable in the affordable premium segment of the market, Joseph sees high potential for growth as the market continues to become more organised. The brand expects to capture a large number of customers moving from the unorganised to the organised sector in the coming years.   
 
“In terms of our geographic penetration, today we're in roughly 140 cities in India,” said Joseph. “We easily have the potential to go to 250 cities over the course of years. So, when you look at the runway for Metro Brands ahead, when you look at the growth of India, we have that potential for growth. We have an economy that seems to be ready for it.”