Relaxo Footwears Ltd. has recorded a 14 per cent decline in its net profit for the third quarter ending December 2024, falling to a staggering US $ 3.8 million compared to
US $ 4.51 million in the same period last year. The company also experienced a 6 per cent drop in revenue, reaching US $ 76.7 million down from US $ 82 million in the corresponding quarter of the previous fiscal year.
Ramesh Kumar Dua, chairman and managing director of Relaxo, attributed the decline to weak consumer demand, particularly within the mass and value segments. In response to these challenging market conditions, Relaxo has focused on restructuring its distribution system.
A key component of this revamp is the introduction of the Relaxo Parivaar app, designed to streamline the network of distributors and retailers while paving the way for future expansion. Dua acknowledged the short-term impact of these efforts, noting the decline in volumes over recent quarters. However, he expressed optimism about the long-term benefits.
Relaxo is a prominent footwear manufacturer in India, with brands like Sparx, Flite, and Bahamas. The company currently operates over 400 exclusive brand outlets across the country.
