Relaxo Footwears drops 7%, hits 52-week low on weak Q2 results

Shares of Relaxo Footwears fell over 7% to a 52-week low of Rs 708 in Thursday's intraday trade after the company reported weak September quarter results.

The net profit of Relaxo Footwears declined 67.3% to Rs 22.40 crore in the September quarter of 2022 as against Rs 68.69 crore during the previous quarter ended September 2021.

Sales of the company also declined 6.2% to Rs 669.65 crore in the September quarter of FY23 as against Rs 714.43 crore during the September quarter of FY22.

The company’s EBITDA was at Rs 59 crore as against Rs 117 crore in the corresponding period of the previous year.

"EBITDA was under pressure due to high raw material prices. EBITDA margin declined by 748 bps to 8.9 per cent in Q2FY23 from 16.4 per cent in Q2FY22," its earning statement said.

At 10.23 am, the scrip was trading 4% lower at Rs 939 over its last day’s closing price of Rs 977 a piece. The stock has fallen nearly 34% in the last one year, while it has plunged about 29% year-to-date.