Shares of Khadim India continued their upward movement in Wednesday's session and hit a fresh 52-week high of Rs 286.50, up 19 per cent on the BSE in intra-day trade on expectation of improved earnings.
The stock of the footwear company was trading at its highest level since September 2019. In the past one week, it has zoomed 51 per cent, as compared to a 0.14 per cent rise in the S&P BSE Sensex. The stock had hit an all-time low of Rs 60.20 on March 20, 2020.
In the January-March quarter (Q4FY21), the company’s Ebitda (earnings before interest, taxes, depreciation, and amortisation) and profit after tax (PAT) turned positive at Rs 14.09 crore and Rs 11.52 crore, respectively compared with losses in the corresponding quarter last year. Revenue from operations grew 70.7 per cent year-on-year (YoY) to Rs 270 crore as against Rs 158 crore in the year-ago quarter.
Khadim India is the second largest footwear retailer in India and has the largest presence in East India. In Q4, the company focused on reducing inventory in retail and distribution business while also clearing dues of debtors. The retail business saw a healthy growth during the quarter. The company is expected to get back to its growth trajectory provided there is no further lockdown.
The company said the distribution business continued its growth momentum. The gross margins for the quarter improved substantially in both retail and distribution verticals. The company has bagged an institutional order from the Education Department of Uttar Pradesh, worth Rs 128 crore for supply of school bags.
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