Relaxo Footwears slips 10% on weak March quarter results

In Q4FY22, EBITDA margin was down 596 bps to 15.9% due to steep increase in raw material prices and extra support to trade towards GST rate differential on inventory.

Shares of Relaxo Footwears slipped 10 per cent to Rs 928 on the BSE in Thursday’s intra-day trade after the company reported weak operational performance in March quarter (Q4FY22). Earnings before interest, taxes, depreciation, and amortization (EBITDA) margins declined 596 basis points (bps) to 15.9 per cent from 21.8 per cent, due to steep increase in raw material prices and GST rate differential on inventory.

At 09:59 am; the stock traded 6 per cent lower at Rs 965.55, as compared to 1.7 per cent decline in the S&P BSE Sensex. Earlier, it had hit a 52-week high of Rs