Multi-brand footwear retail company Metro Brands Ltd. shares gained more than 5 percent on Wednesday after the company reported strong growth in revenue and store expansion in the March quarter.
he company however reported a decline in its operating margins due to higher inventory costs and advertising and marketing expenses. The management stated that their focus would be on liquidating the current excess inventory in the ongoing fiscal. Metro Brands’ revenue jumped 35 percent to Rs 544.13 crore in the March quarter from Rs 403.16 crore in the year-ago quarter.
However, EBITDA margin for the quarter dropped to 26.4 percent in the March quarter from 32.2 percent a year ago. Profit after tax declined 1.1 percent to Rs 68.74 crore in the March quarter from Rs 69.5 crore a year ago.
Its depreciation costs rose 44.7 percent to Rs 50.2 crore as against Rs 34.7 crore in the same quarter last year.
The company incurred higher expenses on advertisement and marketing in the second half of 2022-23 to support a higher number of store openings and drive overall sales.
It added 19 stores in the March quarter taking the total to 119 new stores added in financial year 2023.
Metro Brands is a multi-brand footwear retail company and sells products under brands such as “Metro”, “Mochi”, “Walkway” and “Crocs”. Shares of Metro Brands are trading 6 percent higher at Rs 933.90. The stock is trading close to its 52-week high of Rs 980, and has gained 7 percent so far this year.