Liberty Shoes

The company’s performance for Q1FY15 did not have that spring to the feet – it was dull and staid. Net profit came in at Rs.33 crore, up just Rs.4 crore over previous Q1 and QoQ, it was down 25%. The fall in bottomline can be attributed directly to the fall in topline – net sales was down 9% (YoY) at Rs.102 crore and down 28% sequentially. This only got further accentuated with an overall rise in operating cost.

The overall domestic sales of the company have been down because of deferment of one of the major prestigious Institutional Orders worth around Rs. 48 crore which it had bagged at the end of quarter, part of which were to be supplied in this quarter like corresponding previous year’s quarter.  This deferment affected sales and the company expects to complete this over the current Q2 and hopes to achieve its sales target of 6 months.  The company added 21 new showrooms of franchisees and Company Owned Company Operated (COCO) during Q1. It plans to add 70-80 more showrooms in the Franchisees or COCO format in this financial year to keep its expansion programme and growth as per business plan.