Relaxo Footwears Q4 net profit declines 38 percent to Rs 63 crore

By

Maverick Martins

Published
May 11, 2022

Relaxo Footwears Ltd reported a decline of 38 percent in its net profit at Rs 63 crore ($8.2 million) for the fourth quarter ended March 2022, as against a net profit of Rs 102 crore it reported in the year-ago period.

The company’s revenue for the quarter rose by 7 percent to Rs 698 crore, as against Rs 748 crore it reported in the corresponding period of the previous fiscal year.

Relaxo’s total expenses were at Rs 620 crore, as against Rs 617 crore a year ago.

For the entire financial year ended on March 31, 2022, Relaxo Footwears' net profit was Rs 233 crore while its revenue stood at Rs 2,653 crore.

Commenting on the results, Ramesh Kumar Dua, managing director in a statement said, “The year gone by posed several challenges to the business and industry due to the disruptions caused by the second wave and the omicron variant of Covid-19. Margins were affected by dual impact of substantial increase in raw material prices and normalisation of selling, marketing, and admin expenses in FY 22 in comparison to FY 21 being Covid 19 pandemic year. In these challenging times as well, we stood by our dealers & distributors and offered extra support to safeguard their margin towards GST rate differential."

"Despite all these, the company recorded revenue growth of 12% YoY which is a testimony of being the most trusted brand, having consumer centric approach, continuous product innovation and strong execution. We remain committed to all our stakeholders by creating a strong foundation for the future which can provide us sustainable and profitable growth for the long term,” 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.