Metro Brands rallies 4% riding on nearly 30% surge in Q4 sales

Shares of Metro Brands rallied 4 percent in early trade after robust Q4 results. The stock was trading 3.63 percent higher at Rs 913.90 on the NSE 11:03am on May 24.

On a standalone quarterly basis, the speciality footware retailer reported net sales at Rs 514.03 crore for the March quarter of FY23, up 29.85 percent from Rs. 395.87 crore a year ago. The company’s quarterly net profit jumped 20.83 percent to Rs. 81.61 crore from Rs. 67.54 crore, whereas EBITDA was up 21.14 percent to Rs 171.57 crore from Rs. 141.63 crore, according to a May 23 filing with the NSE.

The company’s board of directors recommended the payment of final dividend of Rs 1.50 per equity share, subject to the approval of shareholders, in the annual general meeting (AGM). At its meeting held on January 17, the board had declared an interim dividend of Rs 2.50 per equity share, aggregating to Rs 67.93 crore.

On December 1, 2022, the company acquired 100 percent equity share capital, optionally convertible debentures and compulsorily convertible preference shares of Cravatex Brands Limited for an enterprise value of Rs 202.17 crore. Consequently, it became a wholly owned subsidiary of the company from the aforesaid date.

Stock Performance

Metro Brands went listed on December 22, 2021. The stock has since given a return of 95.91 percent, whereas it delivered 6.48 percent returns since the start of 2023, outperforming the Nifty50 which has remained flat so far this year.

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