India's Metro Brands miss profit, sales estimates on muted wedding demand

Metro Brands

09/08/2024 14:24

BENGALURU, Aug 9 (Reuters) - Indian footwear retailer Metro Brands  METB.NS  on Friday reported first-quarter profit and revenue
that missed expectations due to muted wedding season demand.
    The company said its consolidated net profit after tax fell 1.2% to 917.3 million rupees ($10.93 million) in the June quarter from a
year ago.
    Analysts, on average, had expected a profit of 999.3 million rupees, according to LSEG data.
    Revenue from operations came in at 5.76 billion rupees, below analysts' average estimate of 6.23 billion rupees.

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    KEY CONTEXT
    The quarter saw significantly lower wedding dates - when customers typically spend on pricier footwear - compared to the same period
last year, and loss of business days due to store closures during the elections, the company said.
    Subdued store footfall due to intense heatwaves also resulted in muted sales, it added.
    Peers Relaxo Footwears  RLXO.NS  and Bata  BATA.NS  also reported a fall in their first-quarter profits.
    
    PEER COMPARISON
                                        Valuation (next   Estimates (next 12 months)   Analysts' sentiment                       
                                          12 months)                                                                             
                            RIC        PE       EV/EBITD  Revenue         profit       Mean       # of        Stock to price     Div yield
                                                A         growth(%)       growth(%)    rating*    analysts    target**           (%)
 Metro Brands Ltd            METB.NS     76.43     39.22      17.46          12.11     Hold               17        1.10               0.42
 Bata India Ltd              BATA.NS     50.42     21.26       9.84          32.92     Hold               12        1.05               0.79
 Relaxo Footwears Ltd        RLXO.NS     71.95     37.93      10.64          24.07     Hold               12        1.03               0.36
 Campus Activewear Ltd       CAMU.NS     57.15     28.85      14.18          39.81     Hold                7        1.04         -
    
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
    
    APRIL-JUNE STOCK PERFORMANCE
  
    -- All data from LSEG


($1 = 83.9230 Indian rupees)


($1 = 83.9260 Indian rupees)

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 (Reporting by Aleef Jahan and Chris Thomas; Editing by Eileen Soreng)
 ((aleefjahan.cs@thomsonreuters.com))