Liberty Shoes – Result Q1FY15 Update

Liberty Shoes Ltd reported an interesting Q1FY15 result. The net sales of the company stood at Rs 101.6 cr in Q1FY15. This is on account of lower domestic sales which stood at Rs 94.8 cr in Q1FY15 against Rs 109.7 cr in Q1FY14, decline of 13.6% YoY. The sales decline was a result of deferment of an institutional order worth Rs 48 cr, that was bagged in Q1FY15, which will now be supplied in Q2FY15E. This postponement of sales to Q2FY15E led to some disappointment in Q1FY15 results. Exports stood at Rs 11.46 cr against Rs 6.92 cr in Q1FY14, signifying growth of 65.5% YoY.

During the quarter, the company added 21 new exclusive stores in Company Owned & Company Operated (COCO) & franchise format. Sales in own stores grew by 14% YoY to reach Rs 23.8 cr in Q1FY15 against Rs 20.9 cr in Q1FY14. The company plans to add 20 exclusive stores in Q2FY15. EBITDA stood at Rs 9.3 cr in Q1FY15 . EBITDA margin improved to 9.1%. Thus, there was an improvement in margin despite lower sales. This EBITA improvement

is on account of lower raw material cost which declined from 51.9% of sales in Q1FY14 to 44.7% of sales in Q1FY15.

PAT of the company stood at Rs 3.3 cr. The company mentioned that it plan to restructure its operations by consolidating the business available from group concerns under franchise agreements is being considered actively. As and when this happens the profitability would increase very significantly.


For more info look at C.E.O’s interview at . I would suggest listening to the complete interview.

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2 Responses to Liberty Shoes – Result Q1FY15 Update

  1. jasraj says:


    Would you suggest buying at this level at 281


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