Relaxo Footwear shares dropped 1.50% in early trade, even as the footwear business posted robust Q1 figures. 

At 11:54 am, the Relaxo Footwear stock was trading 2.40% lower at Rs 946.10 on the NSE.

On Monday, July 24, Relaxo Footwears reported a 54.5% YoY jump in net profit at Rs 56.3 crore for the June quarter.

Quarterly revenues surged 10.7% YoY to Rs 738.8 crore. The company said the robust recovery led to volume growth across open footwear. At the operating level, EBITDA augmented 24.8% to Rs 107.6 crore in Q1 of this fiscal over Rs 86.2 crore in the last period.

The EBITDA margin stood at 14.6% versus 12.9% in the preceding fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Relaxo MD Ramesh Kumar Dua said there was significant growth in open and closed footwear categories. The fall in raw material prices and the relentless efforts to ensure the company’s adaptability and resilience in challenging market conditions have improved operating efficiency and profitability.

Sharekhan is bullish on Relaxo Footwear. The firm has suggested a ‘buy’ rating with a target price of Rs 1,005 in its May 12 research report.

Relaxo Footwear stock has assumed a return of 12.93% over the last six months versus a 20.16% return in the NSE Midcap index.