Relaxo Footwears soars on over 3-fold jump in Q4 net

The board has recommended a dividend @ 30% i.e. Rs 1.50 per share for the FY12

Relaxo Footwears has soared as much as 20% to Rs 392 after reporting over three-fold jump in net profit at Rs 18.79 crore for the quarter ended March 2012, on back of higher sales and lower raw material cost. The footwear maker had a net profit of Rs 5.62 crore in the corresponding quarter of previous fiscal.

Net sales grew 22% at Rs 242 crore on year-on-year basis, while the raw material cost declined 11% to Rs 88 crore during the quarter under review.

The profit margins improved by over 400 bps each, with operating profit margins has improved from 8.65% to 14.33% and net profit margins from 2.82% to 7.77% in the same period.

 

Meanwhile, the board of directors of the company has recommended a dividend @ 30% i.e. Rs 1.50 per share for the financial year 2011-12.

As many as combined 20,178 shares have already changed hands on the counter till early noon deals, against an average less 1,000 shares that were traded daily in past two weeks on both the exchanges.