Relaxo Footwears on Sunday reported a 23 per cent rise in its profit after tax at Rs 39 crore for the second quarter ended September 30, 2018.
The company had posted a profit after tax of Rs 32 crore in the same period a year ago, it said in a statement.
Revenues of the footwear manufacturing firm increased by 19 per cent to Rs 545 crore during the reported quarter from Rs 460 crore in the corresponding period of 2017-18.
"Growth has been mainly driven by increase in volumes," the company said.
The finance cost of the company reduced from Rs 1.9 crore to Rs 1.2 crore on year-on-year basis due to lower utilisation of working capital limits and reduction in term loan.
"We have completely passed on the benefit of reduced GST rates from 18 to 5 per cent on footwear priced between Rs 500 and Rs 1,000. This helped us to realise higher volumes," Relaxo Footwears Managing Director Ramesh Kumar Dua said.
He added that oil price spike during the quarter increased cost of some raw materials.
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