Relaxo’s input cost to inch up owing to spike in crude pricesRELAXO - 1007 Change: -10.20 (-1.00 %)
News: In a media interaction, the management of Relaxo footwear indicated that raw material prices have been elevated due to a spike in crude oil prices .
Views: The input price for Relaxo has been on the rise from January 2021 and the company has taken an average price hike in the range of 20-25% in the last few quarters. With a spike in crude oil prices , the input cost is going to inch up further necessitating further price hikes. Relaxo operates in the value segment and such price hikes can negatively impact near term demand, moderate revenue growth and also subdue profit margins. The management indicated that it expects the situation to stabilise from Q1FY23 onwards and is positive on revenue growth prospects of the company once the situation normalises