Relaxo Footwears reported 27.8% rise in net profit to Rs 30.96 crore in Q1 FY22 from Rs 24.22 crore in Q1 FY21.
Revenue from operations increased by 36.7% YoY to Rs 497.13 crore during the quarter. The strong revenue growth was due to the low base of Q1 FY21 which was impacted due to complete nationwide lockdown till first week of May.
As compared with Q4 FY21, however, the company's net profit and revenue from operations declined by 69.7% and 33.5%, respectively.
Other income stood at Rs 5 crore as compared to Rs 7 crore in the corresponding period of the previous year. The decrease is mainly on account of lower waiver of rent this quarter compared to the corresponding period of the previous year.
Total expenses rose 36.7% to Rs 462.15 crore in Q1 FY22 over Q1 FY21, due to higher raw material costs (up 238.9% YoY), higher employee expenses (up 29.9% YoY) and higher other expenses (up 93.1% YoY).
EBITDA rose 16% to Rs 66 crore in Q1 FY22 from Rs 57 crore in Q1 FY22. EBITDA margins decreased by 237 bps YoY to 13.3% mainly due to increase in raw material prices and restoration of marketing and brand promotion expenses.
Profit before tax in Q1 FY22 stood at Rs 40.25 crore, up by 24.5% from Rs 32.32 crore, in Q1 FY21. Current tax expenses rose 27.8% YoY to Rs 12.65 crore during the period under review.
Ramesh Kumar Dua, managing director, said: The second wave of COVID-19 that caused lot of disruptions has now begun to reside and with the vaccination drive gaining pace the economy is opening up and moving back to normalcy. However, during the months of April and May there were severe disruptions due to localized lockdowns across geographies.
Inspite of all the challenges, we managed to deliver yet another resilient quarter backed by our customer centric approach, market share and continuous focus on quality improvement, though, we remain cautious on the rising trend in raw material prices.
The company enjoys comfortable liquidity position with strong balance sheet and cash flow position and is rightly positioned to tap the growth opportunities in the sector.
Relaxo Footwears is engaged in production of Hawaii slippers, light weight slippers, canvas shoes, PVC footwear etc.
The scrip shed 0.51% to end at Rs 1149.80 on the BSE on Friday.
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