Relaxo Footwear’s Q1 Financial Results in 21% Profit Fall to Rs.44 Crore with Rs.748 Crore Turnover

Relaxo Footwear's Q1 Financial Results in 21% Profit Fall to Rs.44 Crore with Rs.748 Crore Turnover

In a recent financial update, Relaxo Footwears Limited disclosed a 21% drop in its net profit for the first quarter ending June 30, reporting a profit of Rs. 44 crore (approxi US$5.1 Million) compared to Rs. 56 crore during the same period last year.

Despite this decline, the company experienced a slight increase in turnover, reaching Rs. 748 crore (approxi US$90 Million) against Rs. 739 crore in the corresponding quarter of the previous year.

The Chairman and Managing Director, Ramesh Kumar Dua, attributed the modest revenue growth to challenging consumer sentiments influenced by various factors, including election-related disruptions and extreme heat affecting different regions of the country.

Dua emphasized that the current market environment has dampened consumer spending, leading to lower-than-expected demand for the company’s products.

“We are operating in a labour-intensive industry where government-set minimum wages have risen significantly.”

Ramesh Kumar Dua, Chairman and Managing Director

He explained that, in light of the subdued market conditions, the company decided against passing on the increased costs to consumers. This decision was made to maintain competitiveness in a market that has not been performing as expected, ultimately impacting profitability this quarter.

Additionally, the company has been making capital investments aimed at expanding its future production capacity. However, these investments have led to higher depreciation costs, further pressuring profit margins.

In conclusion, while Relaxo Footwears Limited has managed to maintain a slight increase in turnover, the company faces several headwinds, including changing consumer behavior and rising operational costs. As the market dynamics evolve, it will be crucial for Relaxo to navigate these challenges effectively to restore profitability in the upcoming quarters.

Like this article? Share it with your network!

Arshad

Arshad

He is an engineer specializing in Leather Technology, known for his keen interest in analyzing global leather, footwear, and leather goods markets & his ability to make complex information clear & accessible. 

Write for Us

Share your stories, experiences, opinions, and analysis in the expert columns of leathernews.org and reach a niche audience and make your voice heard in the global leather, footwear & leather goods industry.

Support Us

We bring you the latest news, insights, and analysis from the global leather, footwear, & leather goods industries

Search Articles

Roll Up Your Sleeves & Join Our Exclusive Newsletter

Get our free weekly newsletter that keeps hundreds of professionals in the global leather, footwear & leather goods industry updated with the latest insights & news.

Recent News

12 Tannery Owners Finalize Plot Allocations in Sialkot Tannery Zone with SCCI President

In a series of productive meetings with Ikram-ul-Haq, the President of the Sialkot Chamber of...

Indian Sneaker Marketplace Startup Culture Circle Secures $2 Million in Seed Funding

Culture Circle, a sneaker-focused ecommerce marketplace platform, has successfully raised $2 million...

Egyptian PM Mostafa Madbouly Visits Robbiki Leather City Highlighting $1 Billion Export Vision

Egyptian Prime Minister Mostafa Madbouly recently visited the Robbiki Leather City, underscoring its...

Support Us

We bring you the latest news, insights, and analysis from the global leather, footwear, & leather goods industries