Indian footwear firms report mixed performance in Q1 FY25

In the first quarter of fiscal 2025 (Q1 FY25), leading Indian footwear companies reported mixed financial performances, reflecting varying degrees of resilience and challenges within the sector. The data reveals contrasting trends in revenue, profitability, and margins across major players such as Campus Activewear Ltd, Relaxo Footwears, Bata India, Liberty Shoes, and Metro Brands.

Campus Activewear Ltd

Campus Activewear Ltd experienced a decline in its financial performance in Q1 FY25. The company's revenue dropped by 4.1 per cent to ₹3.391 billion (approximately $40.4 million), down from ₹3.537 billion in the same quarter of the previous year. This decline in revenue was mirrored in its profitability, with net profit decreasing by 19.4 per cent to ₹253.80 million compared to ₹314.80 million in Q1 FY24. Consequently, the Earnings Per Share (EPS) also saw a drop from ₹1.03 to ₹0.83.

The company's operating and net profit margins also contracted. The operating profit margin (OPM) declined to 15.92 per cent from 18.77 per cent, while the net profit margin (NPM) fell to 7.48 per cent from 8.90 per cent.

Relaxo Footwears Ltd

Relaxo Footwears Ltd showed a slight improvement in revenue, which increased by 1.3 per cent to ₹7.481 billion (approximately $89.1 million) in Q1 FY25 from ₹7.388 billion in Q1 FY24. However, the company faced a significant decline in profitability, with net profit dropping by 21.2 per cent to ₹443.70 million from ₹563.20 million in the previous year. This led to a decrease in EPS, which fell from ₹2.26 to ₹1.78.

Relaxo's margins also took a hit, with OPM decreasing to 13.94 per cent from 15.54 per cent and NPM declining to 5.93 per cent from 7.62 per cent.

Bata India Ltd

Bata India’s revenue slightly decreased by 1.4 per cent to ₹9.446 billion (approximately $112.5 million) from ₹9.581 billion in Q1 FY24. However, despite the small decline in revenue, Bata India achieved a remarkable 61.7 per cent increase in net profit, which surged to ₹1.743 billion from ₹1.078 billion in the same quarter of the previous year. This significant rise in profitability boosted the EPS from ₹8.39 to ₹13.57.

The company's margins also saw notable improvements, with OPM increasing to 35.49 per cent from 26.46 per cent, and NPM rising to 18.46 per cent from 11.26 per cent.

Liberty Shoes Ltd

Liberty Shoes Ltd reported a positive performance in Q1 FY25, with revenue increasing by 8.8 per cent to ₹1.559 billion (approximately $18.58 million) from ₹1.433 billion in Q1 FY24. The company's net profit also rose by 39.2 per cent to ₹46.62 million compared to ₹33.49 million in the same quarter last year, leading to an increase in EPS from ₹1.97 to ₹2.74.

However, Liberty Shoes faced slight margin pressure, with OPM decreasing to 10.40 per cent from 10.95 per cent, though the NPM improved to 2.99 per cent from 2.34 per cent.

Metro Brands Ltd

Metro Brands Ltd saw stable revenue in Q1 FY25, with a modest 1.4 per cent increase to ₹5.632 billion (approximately $67.13 million) from ₹5.555 billion in Q1 FY24. However, the company's net profit declined by 13 per cent to ₹923.49 million from ₹1.061 billion, resulting in a decrease in EPS from ₹3.91 to ₹3.40.

The company's margins also showed some contraction, with OPM decreasing to 36.13 per cent from 37.90 per cent and NPM falling to 16.40 per cent from 19.11 per cent.

ALCHEMPro News Desk (DP)