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Relaxo Footwears hits all-time high on strong September quarter results

The company's revenue during the quarter grew by 14 per cent year-on-year (YoY) at Rs 622 crore as compared to Rs 543 crore in the corresponding period of the previous year.

SI Reporter  |  Mumbai 

Relaxo
Photo: www.relaxofootwear.com

Shares of hit an all-time high of Rs 629, zooming 16 per cent on the National Stock Exchange (NSE) in the early morning deals on Monday after the company reported strong operating performance with a more than 300 basis points (bps) margin improvement in September quarter (Q2FY20). The stock surpassed its previous high of Rs 561 recorded on September 25 in the intra-day trade.

In Q2, EBITDA (earnings before interest, tax, depreciation and amortisation) margin improved 330 bps at 16.8 per cent from 13.5 per cent in the year-ago quarter. Premiumization and favorable raw material prices improved EBITDA margins.

The company’s revenue during the quarter grew by 14 per cent year-on-year (YoY) at Rs 622 crore as compared to Rs 543 crore in the corresponding period of the previous year. The management said growth has been driven mainly by premiumisation, product mix and price increase in selected categories.

The company said it has chosen to exercise the option of lower tax rate of 25.168 per cent (inclusive of surcharge and cess) thereafter advantage of full period impact has come in this quarter. Net profit of the company rose 79 per cent to Rs 71 crore on YoY basis.

In the past three months, has outperformed the market by surging 47 per cent, as compared to an 8 per cent rise in the Nifty 50 index.

The stock, however, pared most of its opening gains later and at 09:43 am, it was trading 3 per cent higher at Rs 562 on the NSE, against a 0.62 per cent rise in the benchmark index. A combined 390,377 shares changed hands on the counter on the NSE and BSE so far.

First Published: Mon, November 04 2019. 09:49 IST
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