Relaxo is relaxed

Looks like Relaxo Footwear did put its best foot forward in Q3FY21 with net profit coming in 66% (YoY) higher at Rs.90 crore on a 12% increase in revenue at Rs.672 crore on the back of increased demand. The rise in bottomline can be attributed to efficient inventory management.

EBIITDA was up 46% at Rs.149 crore and margins rose 519 bps to 22.1% mainly due to product mix, benign raw material prices and saving in selling and administrative expenses.

Other income stood at Rs. 4 crore v/s Rs.2 crore - increase is mainly on account of lease rent waiver/reduction of Rs. 2 crore agreed by lessors for its rented premises.

The stock is in the green presently, rising 2.5% to Rs.843.85. Its 52-week high is at Rs.927.65 and low at Rs.493.05.