Relaxo Footwear tumbled down over 4% to hit a new 52-week low at Rs.772.20 and currently tradesover 3.5% down at Rs.775 levels.

The company’s performance in Q3FY23 was impacted by the subdued demand in mass segment articles and the higher volume/value base in the corresponding quarter in FY22 due to change in GST rate with effect from1st January, 2022.

Revenue from operations fell 8% (YoY) at Rs.681 crore. EBITDA came in 41% lower at Rs.72 crore while margins slipped from 16.4% to 10.6%.

The PAT for the quarter was down 57% at Rs.30 crore.

The company said that the market environment remains competitive & challenging and it made price corrections to counter the same and full effect of recovery will be seen from Q4FY23 onwards. It said that once the major portion of the high-cost inventory gets cleared from its distribution channels coupled with the business showing signs of improvement and raw material costs stabilising, it expects improvement in margins while regaining the market share in the quarters to come.

The company is also hoping that its closed footwear segment will continue to show healthy growth momentum as wholesale distribution channels and online penetration improve.