India's Relaxo Footwears posts Q4 revenue jump on strong customer demand
10/05/2023 11:43
BENGALURU, May 10 (Reuters) - Indian footgear seller
Relaxo Footwears Ltd. RLXO.NS posted a 9.6% jump in
fourth-quarter revenue on Wednesday, as demand for its shoes and
slippers remained strong despite high raw material costs.
The maker of Sparx sports shoes and Flite slippers said that
revenue from operations rose to 7.65 billion Indian rupees
($93.54 million) for the quarter ended March 31, 2023 from 6.98
billion rupees a year earlier.
Growth in the topline comes after past price hikes,
undertaken by the company to battle higher costs, failed to dent
customer appetite for its branded products.
Analysts had noted that a good wedding season and festivals
such as Holi could have led to an improvement in demand in the
quarter.
Profit for the company, however, rose a bare 0.6% to 633
million rupees year-on-year, as increased costs hit margins.
Total expenses in the quarter mounted 10.32%, the company said
in an exchange filing.
Relaxo also announced a final dividend of 2.50 rupees per
share held.
The company's stock ended 3.10% higher after results on
Wednesday.
($1 = 81.7800 Indian rupees)
(Reporting by Hritam Mukherjee in Bengaluru; Editing by Janane
Venkatraman)
((Hritam.Mukherjee@thomsonreuters.com; +91 9830427878;))