Indian footwear giants' Q3 FY24 revenue rises amid profit challenges

Campus Activewear reported a slight increase in revenue, reaching ₹472.01 crore in December 2023, up from ₹465.62 crore in December 2022. However, the company saw a notable decrease in profitability, with profit before tax (PBT) dropping to ₹33.47 crore from ₹65.00 crore, and net profit halving to ₹24.89 crore from ₹48.31 crore year-on-year (YoY). Earnings per share (EPS) also decreased from ₹1.59 to ₹0.82. The operating profit margin (OPM) and net profit margin (NPM) declined to 12.21 per cent and 5.27 per cent, respectively, compared to 19.93 per cent and 10.38 per cent in the previous year.

Bata India experienced marginal revenue growth, with revenue rising to ₹903.47 crore in December 2023 from ₹900.21 crore in December 2022. Total income increased slightly to ₹914.26 crore. However, like Campus Activewear, Bata India witnessed a decline in profitability metrics; PBT fell to ₹77.32 crore from ₹109.63 crore, and net profit decreased to ₹57.31 crore from ₹83.11 crore YoY. EPS dropped from ₹6.47 to ₹4.46, with OPM and NPM percentages moving to 21.31 per cent and 6.34 per cent from 23.73 per cent and 9.23 per cent, respectively.

Relaxo Footwears stood out with positive growth across key financial indicators. The company's revenue increased to ₹712.71 crore from ₹681.03 crore, and total income rose to ₹718.70 crore. PBT and net profit saw healthy increases to ₹50.83 crore and ₹38.57 crore, respectively, up from ₹40.58 crore and ₹30.10 crore. EPS improved from ₹1.21 to ₹1.55. Additionally, both OPM and NPM showed improvements, with OPM rising to 13.07 per cent from 11.26 per cent, and NPM to 5.41 per cent from 4.42 per cent.

Metro Brands Ltd also posted revenue growth, with revenue reaching ₹616.39 crore, up from ₹577.29 crore. Total income rose to ₹632.85 crore. However, the company saw a slight decline in profitability, with PBT decreasing to ₹149.12 crore from ₹153.23 crore, and net profit to ₹111.20 crore from ₹114.63 crore. EPS saw a minor decrease from ₹4.22 to ₹4.09. Both OPM and NPM experienced slight declines to 36.62 per cent and 18.04 per cent, respectively, from 37.90 per cent and 19.86 per cent.

ALCHEMPro News Desk (DP)