Khadim India Limited, one of India’s leading footwear company, has demonstrated a robust recovery in the last year. The company has announced yet another quarter of positive performance for Q2FY22 on November 10, 2021. Revenue from operations for the quarter grew by 33% yoy to Rs1616 million from Rs1217.47 Mn in Q2FY21.
Net Profit after tax amounted to Rs64.75 million in Q2FY22 against a loss of Rs211.43 million in Q2FY21, company said in a filing. GM% improved by ~230 bps to 40.6% in Q2FY22 from 38.3% in Q2FY21. The Company opened 25 New Franchise Stores across India. Working capital efficiency has improved cashflow position and strengthened the balance sheet.
At around 11.46 am, Khadim India Ltd was trading at Rs308.70 per piece down by Rs11.15 or 3.49% from its previous closing of Rs319.85 per piece on the BSE.
Khadim India Limited continued to strengthen its retail presence in tier II & III cities by opening 25 new franchise stores during the second quarter despite partial lockdown, taking the overall tally to 555 franchise stores. The Company has achieved healthy revenue growth across both its business, retail and distribution, and significant improvement in margins for 3 consecutive quarters (barring Q1FY 22 owing to the lockdown).
“Owing to “affordable fashion” positioning of the Brand, Khadim is able to cater to India & Bharat simultaneously. From hi-street stores in metro cities, Tier I, Tier II (through retail) to the rural general trade multi brand footwear Outlets (through distribution) – the brand has established its footprint and shelf space everywhere,” company said.
“The past year has been a lot of hard work especially because we just came out from a rough year behind us. We have reworked our range architecture, margin and cost structures, supply chains, and become more process driven and working capital efficient along with investing in growing our human capital and deepening our relationships with our business partners. All of these changes ensured that we were able to adapt to the changing macro-economic scenario, overcome the prior business inefficiencies and achieve a turnaround despite the impact of COVID on business and economy” said CEO of Khadim India Limited – Namrata Ashok Chotrani.
“The Novel coronavirus pandemic has been one of the biggest healthcare crisis over the last century. The pandemic induced necessary lockdowns and healthcare initiatives have caused severe disruptions to the economy. Just like all other retail brands, we have also faced similar issues due to the COVID 1st and 2nd waves, but we stuck to the basics –maximise sale recovery, protect margins, reduce fixed costs, regulate working capital with strict monitoring of cashflows. In the post COVID era, our affordable fashion positioning has resonated well with our existing and new customer base. All the hard work is paying off and we are looking forward to doing good business in coming future. This is just the beginning” Namrata Chotrani added.