Metro Brands Q3 PAT rises 54.6% YoY to Rs 100.8 cr

Metro Brands posted a 54.6% rise in consolidated net profit to Rs 100.85 crore on a 59% jump in net sales to Rs 483.77 crore in Q3 FY22 over Q3 FY21.

Consolidated profit before tax stood at Rs 133.19 crore in Q3 FY22, rising 78% from Rs 74.9 crore posted in Q3 FY21. The footwear maker posted a robust recovery in customer sentiments since August 2021 which continued in Q3 FY22. The company said it posted its best ever quarterly result.

Consolidated EBITDA grew by nearly 70% to Rs 169 crore in Q3 FY22 over Q3 FY21. EBITDA margin improved to 34.9% in Q3 FY22 from 32.7% in Q3 FY21. Meanwhile gross margins improved to 59.1% in Q3 FY22 from 57.9% in Q3 FY21.

Metro Brands said strong gross margins were achieved due to lower contribution of discount sales and improvement in overall sales mix. In coming quarters, the company sees overall gross margins to normalize back to around 55-56% levels. Store expansion also gathered pace with 39 new stores opening in Q3 FY22.

Shares of Metro Brands entered bourses on 22 December 2021. The scrip was listed at Rs 436, representing a discount of 12.80% to the initial public offer (IPO) price. The IPO of Metro Brands was subscribed 3.64 times. The issue opened for bidding on 10 December 2021 and it closed on 14 December 2021. The price band of the IPO was fixed at Rs 485-500.

Metro Brands is one of the India's largest footwear retailers and is among the aspirational Indian brands in the footwear category. The company opened its first store under the Metro brand in Mumbai in 1955 and have since evolved into a one-stop shop for all footwear needs.

Shares of Metro Brands ended 1.51% higher at Rs 507.9 on Friday.

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