India's Metro Brands tops quarterly profit estimates on higher premium footwear sales

Metro Brands

22/05/2024 15:10

BENGALURU, May 22 (Reuters) - India's footwear retailer Metro Brands  METB.NS  reported a bigger-than-expected
rise in fourth-quarter profit on Wednesday, as consumers purchased its premium shoes and sandals due to more offers and
discounts.
    The company, which sells shoes from brands such as Fila, Crocs, and Mochi, said its consolidated net profit after tax
more than doubled to 1.55 billion rupees (nearly $19 million) in the March quarter. 
    Analysts, on average, had expected a profit of 696.7 million rupees, according to LSEG data.
    Revenue from operations grew over 7% to 5.83 billion rupees. The company opened 97 new stores in the fiscal year
2024, and its e-commerce sales in the quarter grew 25% to 410 million rupees. 
    For further highlights, click: (Full story)
    
    KEY CONTEXT
    Indian footwear retailers have faced sluggish volume growth amidst intensified competition, resorting to more
discounts to attract customers. 
    However, the demand for premium products targeting affluent consumers continues to drive sales growth.
    
    PEER COMPARISON
    
                                 Valuation (next 12      Estimates (next 12           Analysts' sentiment            
                                      months)                 months)                                            
                         RIC      PE     EV/EBITDA     Revenue       Profit      Mean      # of      Stock to      Div
                                                        growth       growth     rating*  analysts     price       yield
                                                                                                     target**      (%)
  Metro Brands Ltd     METB.NS   69.89     35.48        17.45        29.12       Hold       16         0.96        0.97
   Bata India Ltd      BATA.NS   47.06     19.46        10.10        30.64       Hold       12         0.90        0.98
  Relaxo Footwears     RLXO.NS   72.86     38.12        15.13        35.96       Hold       12         1.00        0.30
         Ltd                                                                                                     
  Campus Activewear    CAMU.NS   55.44     26.46        14.30          --         Buy       7          0.92         --
         Ltd                                                                                                     
 * 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



    JANUARY-MARCH STOCK PERFORMANCE
    
    

    All data from LSEG
    1$ = 83.2450 rupees

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 (Reporting by Ashna Teresa Britto in Bengaluru, Additional reporting by Manvi Pant; Editing by Ravi Prakash Kumar)
 ((AshnaTeresa.Britto@thomsonreuters.com;))