Published
Nov 3, 2022
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Relaxo Footwears sees net profit drop 67.38% in FY23 Q2

Published
Nov 3, 2022

Relaxo Footwears saw its net profit drop by 67.38% in the second quarter of the 2023 financial year to total Rs 22.4 crore. The footwear brand experienced volume decline coupled with high prices for raw materials. 

Relaxo Footwears specialises in comfort footwear - Relaxo Footwears Limited- Facebook


In the second quarter of the 2022 financial year, Relaxo Footwear reported a net profit of Rs 68.69 crore. However, in a regulatory filing on November 2, the business reported the dip in profit as well as a drop in revenue from operations, which was down by 6.26% year-on-year, ET Bureau reported. 
 
“This was the result of a decline in volumes of the categories serving the mass segment who were under inflationary pressures with reduced affordability,” said Relaxo Footwears in its earnings statement, the Press Trust of India reported. “EBITDA [earnings before interest, tax, depreciation, and amortisation] was under pressure due to high raw material prices. EBITDA margin declined by 748 basis points to 8.9% in Q2 FY23 from 16.4% in Q2 FY22.”

The second quarter of the 2023 fiscal required an increase in expenses from the business, up to Rs 644.87 crore, representing a 2.43% year-on-year increase. Many manufacturing businesses have experienced higher costs due to rising raw materials prices and have faced the dilemma of whether to take the hit to profits or to pass the cost on to the consumer. 

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