Metro Brands shares fall over 5% after Q3 net profit decline
Metro Brands fell 5% to Rs 1,140 in Friday's trade on BSE after the footwear retail chain reported a 12.6% decline in consolidated net profit to Rs 98.8 crore for the third quarter ended December 2023.
The company had posted a net profit of Rs 113 crore during the October-December period a year ago, according to a regulatory filing from Metro Brands.
However, its revenue from operations increased 6.14% to Rs 635.5 crore during the quarter under review against Rs 598.7 crore in the year-ago period.
In a separate filing, MBL said its board in a meeting held on Thursday declared an interim dividend at Rs 2.75 per equity share on the face value of the paid-up equity shares of Rs 5 each for the FY 2023-24.
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At 10.45 am, the scrip was trading 3.3% lower at Rs 1,162.4 on BSE.
The stock has also declined over 10% in the last one month, however, it has surged 33% in the past one year.
This quarter, MBL signed a long-term partnership agreement with Foot Locker, Inc., the New York-based specialty athletic retailer. The partnership grants MBL exclusive rights to own and operate Foot Locker stores in India.
«The company is currently in the process of liquidating the FILA inventory and closing most of the Exclusive Brand Outlets (EBOs), as previously indicated. MBL is on course to achieve these goals by the end of FY 2023-2024,» Metro Brands said in an exchange filing.
«Looking ahead to FY 2024-2025, the company plans to strategically reposition the FILA brand, and in FY 2025-2026, the primary focus will be on boosting growth and enhancing prominence in the athleisure industry,» it said.
As per Trendlyne data, the average target price of the stock is Rs
