Shares of Relaxo Footwears fell after three sessions of gains today after the footwear firm reported a 67.38 per cent fall in net profit for the second quarter ended September 2022. The Q2 earnings came below expectations. Centrum Broking expected profit to fall 29.1 per cent Y-o-Y to Rs 48.70 crore led by a 10 per cent decline in sales at Rs 643 crore.
Net profit declined to Rs 22.40 crore for the second quarter ended September 2022 against a net profit of Rs 68.69 crore in the July-September quarter a year ago. Profit fell on account of volume decline and high raw material prices.
Relaxo Footwears shares slipped to a fresh 52-week low to Rs 908.15 today, opening 7.04 percent lower on BSE. The Relaxo Footwears stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Relaxo Footwears stock has lost 33.71 per cent in a year and lost 28.48 percent in 2022. The stock hit a 52-week high of Rs 1,447.50 on November 4, 2021. Total 0.80 lakh shares of the firm changed hands amounting to a turnover of Rs 7.47 crore on BSE. The market cap of the firm stood at Rs 23,384 crore. In the last quarter, Relaxo reported a 6.27 per cent fall in sales to Rs 669.65 crore against sales of Rs 714.43 crore in the corresponding quarter of the previous fiscal.
Meanwhile, after Q2 earnings, Motilal Oswal has assigned a neutral rating to the footwear firm. EBITDA slipped 49% YoY and 43% from pre-covid levels to Rs 594 m (40% miss), due to: a) a higher RM cost, and b) an increase in SG&A cost to Rs 180 crore. Centrum Broking expected EBITDA to fall 21.2 per cent to Rs 92.10 crore.
In Q1 of the current fiscal, Relaxo posted a 24.90 per cent rise in net profit to Rs 38.67 crore against net profit of Rs 30.96 crore for the period ended June 30, 2021.
Sales rose 34.20 per cent to Rs 667.15 crore in Q1 against Rs 497.13 crore in the corresponding quarter of previous fiscal. Operating profit excluding other income too climbed 30.15 per cent to Rs 86.12 crore against Rs 66.17 crore in Q1 for the quarter ended June 2021.
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