Relaxo Footwears Ltd posts Q3 net profit of Rs 30 crore

By

Maverick Martins

Published
Feb 7, 2023

Footwear major Relaxo Footwears Ltd reported 57 percent drop in net profit to Rs 30 crore ($3.7 million) for the third quarter ended December 2022, as against Rs 70 crore reported in the year-ago period.

The company’s revenue for the quarter slumped by 8 percent to Rs 681, as against Rs 749 crore reported in the corresponding period of the previous fiscal year.

Commenting on the results, Ramesh Kumar Dua, managing director of Relaxo Footwears in a statement said, “The company has reported a modest performance in Q3FY23. Despite subdued demand due to the continuing inflationary pressures on the consumers, the company showed marginal improvement in volumes on quarter-to-quarter basis. The volume growth was primarily supported by price corrections undertaken.”

“Market environment remains competitive & challenging. Once the major portion of the high-cost inventory gets cleared from our distribution channels coupled with the business showing signs of improvement and raw material costs stabilising, we expect improvements in margins while regaining the market share in the quarters to come,” he added.

Relaxo is one of the leading footwear makers in India and sells under brands Sparx, Flite, and Bahamas. It currently has over 300 exclusive-brand outlets across the country.