Liberty shoes announces its first quarter financial results

New Delhi [India] : Liberty Shoes, India’s leading home-grown footwear brand announced its financial results for the first quarter ending June 30, 2022.

Anupam Bansal, Director RETAIL said, “With the focus of Government on the manufacturing sector, the future potential of the footwear industry is promising, particularly for established and organized brands. Rising disposable income is allowing individuals to move up the value chain, demanding products for different occasions, leading to new product segments in footwear.

Also, in recent times, Liberty has quickly spotted this emerging segment and has adapted strategies and earmarked significant investments to tap this market. A perfect interface has been enabled with the emergence of online marketplaces and support infrastructure for logistics and billing. Omni channel presence is the new buzzword, and Liberty is rushing to reap this trend. All this translates into a bonanza of greater availability, convenience and price optimization for consumers, helping them make informed shopping decisions.

EBITDA has been mentioned ignoring the implication of accounting treatment of Operating Lease of the Company in accordance with newly implemented Industry AS-116 w.e.f 1st April 2019. Some of the Key points are –

The Company has recorded Revenue from Operations during Q1 2022-23 with an increase of 65% Y-o-Y at Rs. 16,122.10 Lakh as compared to Rs 9,764.49 Lakh in Q1 2021-22. The base quarter for comparing the growth is the affected quarter due to COVID-19, but the Company has witnessed huge demand for school and formal and sports shoes during the quarter under consideration. The Company has observed that overall consumer sentiments have improved considerably, and due to this, the Company has achieved better realization of per pair sales.

EBITDA has improved at Rs. 1321.54 Lakh during Q1 2022-23 compared to Rs. 343.21 Lakh during Q1 2021-22. The EBITDA margins have shown sharp improvements during this quarter at 8.19% as against 3.51% during the corresponding quarter of last year because of a better sales mix with higher margin and also effective utilization of resources and controlled input costs other expenses.

 PBT of the Company has been recorded at Rs. 755.47 Lakh during Q1 2022-23 as against a Loss of Rs. 306.48 Lakh during the corresponding quarter of Q1 2021-22 because of improved cash flows, thereby reduction of bank borrowings resulting in reduced interest cost during the period. The Company has witnessed an improved collection of payments and reduced its dependence on bank borrowings. During the period ended 30th June 2022, the Company has working capital loan utilization to the extent of Rs. 43 Cr only as against the sanctioned limit of Rs. 115 Cr.

 PAT of the Company has been recorded at Rs. 547.34 Lakh during this quarter compared to Loss of Rs. 306.48 Lakh during the corresponding quarter of last year. For the period under consideration, the Company has created the provision for Income Tax for ₹ 208 Lakhs.