Kolkata (West Bengal) [India], November 12 (ANI/NewsVoir): Khadim, India's leading footwear company, has demonstrated a robust recovery in the last one year.
The company has announced positive quarterly performance for the quarter ended September, 2021.
Revenue from operations for Q2FY22 grew by 83% QoQ and 33% YoY to INR 1616.46mn from 882.30mn in Q1FY22 and 1247.31mn in Q2FY21.
The company's Profit after tax for Q2FY22 amounted to INR 64.75mn compared to a loss of 108.90mn in Q1FY22 and loss of 211.43mn in Q2FY21. Thus, registering a strong recovery.
Khadim India Ltd. 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 Q2FY22.
Key Performance Highlights
Revenue from operations grew by 33% YoY in Q2FY22 to reach INR 1616.46mn from INR 1217.47mn in Q2FY21
GM% improved by ~230 bps to 40.6% in Q2FY22 from 38.3% in Q2FY21
Achieved PAT of 64.75mn in Q2FY22 against a loss of INR 211.43mn in Q2FY21
The company opened 25 New Franchise Stores across India
Working capital efficiency has improved cash-flow position and strengthened the balance sheet
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.
Speaking about the efforts that led to recovery, Namrata Ashok Chotrani, CEO of Khadim India 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."
"The Novel coronavirus pandemic has been one of the biggest healthcare crises 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 cash-flows. 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," she added further.
Khadim's began in the 1960's as a humble shoe store in Chitpur to become a popular and much-loved footwear brand of the new millennials. Today, Khadim has grown to 762 branded exclusive retail stores across 23 states and 1 Union Territory nationally.
The Company is the second largest footwear retailers in India, it has the largest presence in East India and is among the top three footwear brands in South India in terms of exclusive stores operating under the Khadim's brand through the Retail vertical. It also strives to become an emerging brand in West and North India The core business objective of Khadim is 'Fashion for Everyone', and the Company has established an identity as an 'affordable fashion' brand, catering to the entire family for all occasions.
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