Footwear retailer Liberty Shoes has reported a dip of 62.9 per cent in net profit at Rs 1.85 crore in the unaudited results of the third quarter ended 31 December the current fiscal 2022-23 as compared to the net profit of Rs 4.99 crore in the same period of the previous fiscal 2021-22, according to the company’s regulatory filing.
However, its overall income from operations climbed significantly to Rs 158.52 crore in Q3 FY23 from Rs 151.90 crore in the same quarter the previous year, representing a year-on-year (YoY) gain of 4.3 per cent.
According to the regulatory filing, its overall costs increased to Rs 155.95 crore in the October-December quarter, compared to Rs 145.70 crore in the same quarter last year.
In a press statement, the footwear store stated that their EBIDTA fell to Rs 9.18 crore in Q3 2022-23, compared to Rs 13.62 crore in Q3 2021-22. In the third quarter, overall EBIDTA in terms of value declined by Rs 3.21 crore compared to the previous quarter.
The firm stated that the reason for this reduction was that its overhead costs and marketing expenses increased as it sought to maximise client appeal over the Christmas season, the consequences of which are still to be realised in the coming quarters.
The firm stated that its items have continued to be in high demand both online and in physical places. In this fiscal year, its lifestyle section began to contribute to both top and bottom lines, unlike the prior year.
Regarding trends in the footwear business, the store stated that it is going through a transformative period in which, in addition to style and comfort elements, issues relating to utility are becoming more prominent in consumers’ minds.
With the government’s emphasis on the manufacturing sector, the future of the footwear business seems optimistic, particularly for established and organised firms.
According to the firm, a proposed PLI programme for the industry might offer up new possibilities for expanding India’s manufacturing base in order to compete with China.
