New Delhi: Relaxo Shoes has continued to recover its market share in all key segments without relying on discounts or incentives, and its price adjustment has led to good momentum, said Ramesh Kumar Duacorporate executives in a regulatory filing.
Regarding the company’s growth in the previous fiscal year 2022-2023, Dua shared: “Strong brand recognition, strong distribution channels and effective marketing strategies have facilitated the growth of the company. across our portfolios, supported by our strong manufacturing facilities. Raw material prices have stabilized, making it easy for us to offer competitive pricing in the market.”
On Wednesday, Relaxo Footwears reported a slight increase in net profit at Rs 63.30 crore for the fourth quarter (Q4) ending March 31, 2023 compared to a net profit of Rs 62.93 crore in the corresponding quarter. of previous financing, according to the mad cow disease submit.
The footwear company’s total income also increased by 9.2% to Rs 769.26 crore in Q4 FY 2023 compared to Rs 704.10 crore in the same last financial period.
In fiscal year 2022-23, its total earnings increased by 4.6% year-on-year (YoY) to Rs 2801.34 crore from Rs 2676.99 crore in the previous fiscal year 2021-22.
According to exchange filings, its costs rose to Rs 683.85 crore in Q4 fiscal year 23 from Rs 619.66 crore in the corresponding period of the previous financial year.
Profit margins and capital management
In Q4 2023, the company’s after-tax profit margin (PAT) stood at 8.3% compared to 9.0% in Q4 2022.
Dua, in a statement, said that much of the old, high-priced inventory has been liquidated and now new, lower-cost inventory has begun to hit the market, resulting in improved margins. improved this quarter.
He added: “We are currently a debt-free company with strong cash flow from our operations thanks to good working capital management. We believe these factors will help us maintain the fund. growth in the coming quarters.
Relaxo Footwears currently has a positive outlook for the industry and believes that the company is well positioned to take advantage of the opportunities arising from increased footwear consumption per capita and the growing share of the organized market. office.