Are Relaxo Footwear latest results good or bad?

Relaxo Footwear has reported its financial results for the quarter ending June 2025, highlighting several key trends. The company's net sales for this quarter amounted to Rs 654.49 crore, which represents a decline of 12.52% compared to the same quarter last year. This marks the lowest sales figure recorded in the past five quarters, indicating a challenging environment for the company within the footwear industry.
In terms of profitability, Relaxo Footwear reported a standalone net profit growth of 10.21% year-on-year, contrasting with a negative growth of 21.22% in the previous year. This suggests a positive shift in profitability despite the decline in sales. Additionally, the operating profit margin, excluding other income, showed a slight increase, reflecting some operational stability.

However, the company's cash and cash equivalents have decreased to Rs 42.06 crore, the lowest level in the last six half-yearly periods, which raises concerns about short-term liquidity. While the non-operating income reached Rs 11.32 crore, the highest in five quarters, there are questions regarding its sustainability, as it is derived from non-business activities.

Overall, Relaxo Footwear experienced an adjustment in its evaluation over the past three months, reflecting the complexities of its current operational health amidst these financial results.