Relaxo Footwears rose 0.52% to Rs 665 after the footwear maker posted a 6.5% rise in net profit to Rs 75.1 crore in Q2 September 2020 from Rs 70.54 crore recorded in Q2 September 2019.
The company's net sales fell 7.4% to Rs 575.87 crore in Q2 September 2020 over Q2 September 2019. The result was announced on Saturday, 31 October 2020.Profit before tax came at Rs 100.35 crore in Q2 September 2020, a 35% rise over Rs 74.30 crore in the same period last year. Total tax expense were steeply higher at Rs 25.25 crore in Q2 September 2020 from Rs 3.76 crore in Q2 September 2019.
EBITDA grew by 21% year on year to Rs 127 crore in Q2 September 2020. Relaxo's EBITDA margins improved to 22% in Q2 September 2020 from 16.8% in Q2 September 2019, mainly due to saving in raw material cost and special focus on administrative expenses.
Commenting on the results and performance, Ramesh Kumar Dua, MD said, "COVID-19 had major impact on economies and businesses at large during the first half of FY21, with majority of impact being borne by first quarter of the fiscal year. Since the government has ended the lockdown, economic activities have started to recover and business activities are slowly returning towards normalcy. Despite the tough market conditions our focus on administrative expenses along with benign raw material prices have helped us to improve our profitability during Q2FY21, however we are cautious about the recent rising trend of raw material prices. We continuously stay focused on delivering better performance through our innovative products, consumer centric approach, continuous focus on brand strengthening and expansion into newer geographies through strengthening of supply chain. The company enjoys comfortable liquidity position with zero net debt."
Relaxo Footwears is engaged in production of Hawaii slippers, light weight slippers, canvas shoes, PVC footwear etc.
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