Relaxo Footwears Q3 net profit rises 28 percent to Rs 39 crore

Relaxo Footwears Ltd reported a 28 percent increase in net profit to Rs 39 crore ($4.8 million) for the third quarter ended December, as against Rs 30 crore in the year-ago period.

The company’s revenue for the quarter rose by 5 percent to Rs 713 crore, as against Rs 681 crore in the corresponding period of the previous fiscal year.

Commenting on the results, Ramesh Kumar Dua, managing director of Relaxo in a statement said, “We have achieved a modest performance during the quarter, both in terms of revenue and profitability, as the market continues to remain challenging. The volume growth in open footwear has significantly contributed to positive momentum. Softening of raw material prices on Y-o-Y basis has contributed to better margins, which was partly offset by increased expenses.”

“To have direct connect with consumers and to control discounts, we have started selling products on marketplaces as sellers and at company’s website. We are initiating direct connect programs with multiple brand Outlets by offering direct benefit to retailers. We anticipate that these strategic initiatives will improve our growth going forward,” he added.

Relaxo is one of the leading footwear makers in India and sells under brands Sparx, Flite, and Bahamas. It currently has over 300 exclusive-brand outlets across the country.