ADVERTISEMENT

Relaxo Footwear Q2 Review - Strong Revenue Traction Continues: Dolat Capital

Relaxo Footwear Q2 Review - Strong Revenue Traction Continues: Dolat Capital

<div class="paragraphs"><p>An employee prepares to display a pair of sandals&nbsp; inside a store in New Delhi, India. (Photographer: Udit Kulshrestha)</p></div>
An employee prepares to display a pair of sandals  inside a store in New Delhi, India. (Photographer: Udit Kulshrestha)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Relaxo Footwear Ltd.’s results were ahead of our estimates. Volume growth was flattish YoY with 46 million pairs in Q2. Average selling price per pair increased 27% YoY to Rs 154.

Margin performance was muted considering significant inflation in raw material prices. We believe that the margins would improve sequentially with price pass-on post festive season, premiumisation and cost efficiencies.

On two-year basis, Relaxo Footwears exhibited 15% growth while Bata India Ltd. registered 15% decline.

We believe that Relaxo Footwear would continue its strong performance by increasing penetration in South and West and is likely to benefit from premiumisation.

Click on the attachment to read the full report:

Dolat Capital Relaxo Footwear Q2FY22 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.