Relaxo Footwears Reports Negative Performance in Q2 FY24-25 Financial Results

Relaxo Footwears, a midcap company in the consumer durables industry, recently announced its financial results for the quarter ending September 2024. The stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financials, Relaxo Footwears has seen a negative performance in the second quarter of FY24-25. The company's score has fallen from -6 to -10 in the last three months, indicating a decline in its financial health.

One of the major factors contributing to this negative performance is the decline in Profit Before Tax (PBT) less Other Income. The company's PBT for the quarter was Rs 42.93 crore, which is a decrease of 13.86% compared to the same period last year. The trend for PBT in the near term is also very negative.

Similarly, the Profit After Tax (PAT) for the quarter has also decreased by 16.9% compared to the previous year. The company's net sales for the quarter were at Rs 679.37 crore, the lowest in the last five quarters. The near term trend for net sales is also negative.

Despite a slight growth of 5.03% in net sales compared to the same period last year, the company's overall sales trend is negative. The PBT for the quarter was also the lowest in the last five quarters, indicating a negative trend in the near term.

The company's Earnings per Share (EPS) for the quarter were at Rs 1.48, the lowest in the last five quarters. This decline in profitability is a cause for concern for shareholders.

Based on the financial results, it is evident that Relaxo Footwears is facing challenges in its business. Investors should carefully consider these factors before making any investment decisions.