Moneycontrol
Last Updated : Nov 04, 2018 05:28 PM IST | Source: PTI

Relaxo Footwears Q2 PAT up 23% to Rs 39 crore

Revenues of the footwear manufacturing firm increased by 19 percent to Rs 545 crore during the reported quarter from Rs 460 crore in the corresponding period of 2017-18.

Relaxo Footwears on Sunday reported a 23 percent rise in its profit after tax at Rs 39 crore for the second quarter ended September 30, 2018. The company had posted a profit after tax of Rs 32 crore in the same period a year ago, it said in a statement.

Revenues of the footwear manufacturing firm increased by 19 percent to Rs 545 crore during the reported quarter from Rs 460 crore in the corresponding period of 2017-18.

"Growth has been mainly driven by an increase in volumes," the company said.

The finance cost of the company reduced from Rs 1.9 crore to Rs 1.2 crore on a year-on-year basis due to lower utilisation of working capital limits and reduction in the term loan.

"We have completely passed on the benefit of reduced GST rates from 18 to 5 percent on footwear priced between Rs 500 and Rs 1,000. This helped us to realise higher volumes," Relaxo Footwears Managing Director Ramesh Kumar Dua said.

He added that oil price spike during the quarter increased the cost of some raw materials.
First Published on Nov 4, 2018 05:25 pm
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