The footwear maker reported 51% decline in net profit to Rs 24 crore in Q1 June 2020 from Rs 50 crore in Q1 June 2019.
Revenue from operations declined 44% on year-n-year (YoY) basis to Rs 364 crore during the quarter. The revenue was adversely affected due to complete nationwide lockdown till first week of May and significant disturbances during remaining period along with slowdown of economic activities.
Other income stood at Rs 7 crore as compared to Re 1 crore in the corresponding period of the previous year. The increase is mainly on account of lease rent waiver/reduction of Rs. 5 crore agreed by lessors for our rented premises.
EBITDA fell 46% to Rs 57 crore during the period under review. EBITDA margin stood at 15.7% in Q1 FY21 as against 16.4% in Q1 FY20.
Commenting on the results and performance, Ramesh Kumar Dua, managing director, said: "Q1 was significantly impacted by headwinds of COVID-19 pandemic with complete nationwide lockdown extended till first week of May. However, we saw progressive signs of improvement as the restrictions were eased and this will further improve as India unlocks gradually. Despite challenges we remained profitable with comfortable liquidity position, which is a clear indication of our brand strength, organisation's capabilities and focus on cost efficiencies. We observed good demand in open footwear.
We continued strengthening our e-commerce footprint by leveraging our partnerships with major ecommerce players to provide a safe alternative for customers to order our products. Relaxo is well placed to emerge more resilient and energetic in the post COVID-19 world."
Relaxo Footwears is engaged in production of Hawaii slippers, light weight slippers, canvas shoes, PVC footwear etc.
The scrip gained 0.87% to end at Rs 596.25 on Friday.
In the past six months, the stock has lost 19.15% while the S&P BSE Sensex has fallen 7.65% during the same period.
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