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Metro Brands Q3 results: Net profit up 53% to Rs 102 crore

Metro Brands Q3 results: Net profit up 53% to Rs 102 crore

The company's revenue grew 59 per cent to Rs 484 crore, while EBITDA rose 69.8 per cent to Rs 169 crore.

Metro Brands' PAT rose 53.3 per cent to Rs 102 crore. Metro Brands' PAT rose 53.3 per cent to Rs 102 crore.

Footwear retailer Metro Brands on Saturday reported a 53.3 per cent year-on-year (YoY) rise in consolidated net profit for October-December quarter at Rs 102 crore.

The company's revenue grew 59 per cent to Rs 484 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 69.8 per cent to Rs 169 crore.

EBITDA margin stood at 34.9 per cent during the quarter under review as compared to 32.7 per cent in the year-ago quarter.

"Q3 FY22 was the first quarter post Mar'20 without any major Covid related restrictions. Robust recovery in customer sentiments witnessed since Aug21 continued in Q3 FY22 - Helping us register our best ever quarterly sales," the company said in a release.

The company, which recently made its debut on the stock exchanges, said that store expansion gathered pace during the December quarter, with 39 new stores being opened -- the highest ever new store openings per quarter.

Metro Brands said that the growth momentum in e-commerce sales (including omni-channel sales) continued during the quarter with 69 per cent growth, while it achieved strong gross margins due to lower contribution of discount sales and improvement in overall sales mix. "In coming quarters, overall gross margins to normalize back to around ~ 55-56% levels (average seen over last few years)," it said.

Raising concerns on inflation, the footwear retailer said that it is witnessing inflationary trend in raw materials in the range of about 5 per cent. "We continue to engage with our vendor partners to evaluate all means to cushion expected MRP revisions of our upcoming footwear/ accessories range."

It also said that the GST rate revision to 12 per cent from 5 per cent for footwear below Rs 1,000 will not have a major impact on it as less than 15 per cent of its range is below maximum retail price (MRP) of Rs 1,000. 

On a standalone basis, the company's net profit grew 62.6 per cent to Rs 100 crore during the quarter, while revenue rose 62.2 per cent to Rs 476 crore. EBITDA increased 79.2 per cent to Rs 167 crore.

"...we are pleased to see traction in all our concepts of Metro, Mochi, Walkway, and Crocs. We also are encouraged by the growth we have witnessed across the multiple Tiers of cities that we operate in and the continued growth of our ecommerce and omni channel business," the company's CEO Nissan Joseph said.

He said the company is closely monitoring the potential disruptions due to the current COVID-19 situation, and is ready to respond to local regulations.

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