India’s Relaxo Footwears Q2 profit nearly doubles on solid demand

BENGALURU (Reuters) – India’s Relaxo Footwears reported a 97.3% surge in second-quarter profit on Wednesday, helped by strong demand for its shoes and slippers even as its expenses climbed.

The company, which makes the Sparx sports shoes, reported a profit of 441.9 million rupees ($5.31 million) in the quarter ended Sept. 30, up from 224 million rupees a year earlier.

Revenue from operations climbed 6.8% to 7.15 billion rupees, according to an exchange filing. Its expenses rose 3.2% to 6.65 billion rupees, led by a 2.6% increase in raw material costs.

The growth in topline came after the demand for its branded products remained strong despite prices being hiked to cushion the impact of higher costs.

Shares of Relaxo Footwear jumped as much as 6.7% to 957.90 rupees, their highest level since Aug. 14, with heavy trading volume. They were down 0.9% in the July-September quarter.

Peer Bata India will report its results next week.

($1 = 83.2518 Indian rupees)

(Reporting by Rama Venkat in Bengaluru; editing by Eileen Soreng)