You are here: Home » Markets » News
Business Standard

Shares of this Jhunjhunwala-backed footwear firm soar 20% on strong Q3 nos

Metro Brands surged 20 per cent to hit a new high of Rs 608.20 on the BSE in Monday's intra-day trade, up 22 per cent from its issue price of Rs 500 per share.

Topics
Buzzing stocks | Metro Brands | Markets

SI Reporter  |  Mumbai 

IPO-bound Metro Brands aims to utilise Rs 250 cr for store expansion

Shares of footwear company Metro Brands, backed by ace investor Rakesh Jhunjhunwala, surged 20 per cent to Rs 608.20 on the BSE in Monday’s intra-day trade after the company reported strong earnings for the quarter ended December 2021 (Q3FY22).

The stock is trading at its highest level since it got listed on December 22, 2021. With today’s surge, it has gained 22 per cent against its issue price of Rs 500 per share.

At 10:05 am, was trading 18 per cent higher at Rs 600, as compared to a 0.09 per cent gain in the S&P BSE Sensex. The trading volumes on the counter jumped an over five-fold with a combined 2.7 million equity shares having changed hands on the NSE and BSE.

Rakesh Jhunjhunwala’s wife Rekha Jhunjhunwala held 14.42 per cent stake in as on December 21, 2021, the shareholding pattern data showed.

For Q3FY22, reported 53.2 per cent year on year (YoY) growth in consolidated net profit at Rs 102 crore, on healthy revenue growth. The company’s total revenue from operations grew 59 per cent YoY to Rs 484 crore.

Earnings before interest, taxes, depreciation, and amortization (ebitda) margin improved 220 bps to 34.9 per cent in Q3FY22 as compared to 32.7 per cent in Q3FY21. The strong gross margins were achieved due to lower contribution of discount sales and improvement in overall sales mix. In the coming quarters, overall gross margins are expected to normalize back to around 55-56 per cent levels. (average seen over last few years).

Q3FY22 was the first quarter post March 2020 without any major Covid related restriction. Robust recovery in customer sentiments witnessed since August 2021 continued in Q3FY22, helping the company register its best ever quarterly sales.

The store expansion also gathered pace with 39 new stores opening in Q3 FY22 - highest ever new store openings per quarter till date. The growth momentum in e-commerce sales (including omni-channel sales) continues with 69 per cent growth (Q3 FY22 vs Q3 FY21), the company said.

The company does not expect major impact due to the GST rate revision for footwear priced below Rs 1000 as less than 15 per cent of range is below Rs 1,000. The new rate of 12 per cent from earlier 5 per cent has been effective starting January 1, 2022.

Metro Brands is one of the largest Indian footwear speciality retailers. It has evolved in a one-stop shop for all footwear needs by retailing wide range of branded products for the entire family and for every occasion including casual and formal events.

The company retails footwear under its own brands Metro, Mochi, Walkway, Da Vinchi and J. Fontini, and certain third-party brands such as Crocs, Skechers, Clarks, Florsheim, and Fitflop. The company also offers accessories such as belts, bags, socks, masks, and wallets. And has retail foot care and shoe-care products at its stores through a joint venture, MV Shoe Care.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, January 17 2022. 10:40 IST
RECOMMENDED FOR YOU
.