India's Relaxo Footwears reports surge in Q1 profit on higher demand
24/07/2023 11:19
BENGALURU, July 24 (Reuters) - Indian footwear maker and
seller Relaxo Footwears RLXO.NS reported a nearly 46% rise in
first-quarter profit on higher demand for its shoes and
slippers.
The company's consolidated net profit rose to 563.2 million
rupees ($6.9 million) in the quarter ended June 30 from 386.7
million rupees a year earlier.
Revenue from operations for the Sparx sports shoes maker
rose nearly 11% to 7.39 billion rupees, while its expenses rose
8.5%.
The growth in topline came after past price hikes,
undertaken by the company to battle higher costs, failed to dent
customer appetite for its branded products.
Separately, the company announced it re-appointed Ramesh
Kumar Dua as managing director.
Relaxo had reported a profit of 633 million rupees in the
quarter ended March 31 - a modest 0.6% rise year-on-year - as
inflated costs ate into margins despite a jump in revenue.
The company's peer Bata India BATA.NS will report its
results next month.
Shares of Relaxo Footwear closed more than 2% higher after
reporting results, taking the stock to its highest level since
December last year.
($1 = 81.8457 Indian rupees)
(Reporting by Varun Vyas in Bengaluru; Editing by Janane
Venkatraman)
((varunvyas.hebbalalu@thomsonreuters.com;))