Relaxo Footwears expects softening raw materials prices to boost profits after Q1 increase

Relaxo Footwears expects to see the prices of the raw materials it uses in its footwear soften over the coming financial quarters. The business expects this to push up its profit margins after reporting a 46% year-on-year increase in profits after tax during the first quarter if the 2024 financial year. 

The business’ profits after tax totalled Rs 56 crore for the quarter which ended on June 30, the Economic Times reported citing Relaxo Footwears’ filing on the Bombay Stock Exchange. In the first quarter of the 2023 financial year, Relaxo Footwears’ profits after tax had totalled Rs 36 crore. 
 
“Our effective business strategies have enabled us to capitalise on market trends, maintaining a robust position with well-received brands like Sparkx, Bahamas, and Flite,” said Relaxo Footwears’ managing director Ramesh Kumar Dua, ET Retail reported. “Furthermore, all our channels have seen encouraging progress, which will help us deliver positive results consistently.” 

The softening of raw materials prices in the first quarter of this fiscal helped Relaxo Footwear’s profit after tax margin to increase to 7.6%, compared to 5.8% a year prior. The business’ revenue from operations also increased by 11% year-on-year to reach Rs 739 crore, compared to Rs 667 crore a year earlier.