Mirza International Limited , a prominent player in the footwear industry, has reported a significant decline in its financial performance for the fiscal year ended March 31, 2024. The company's latest financial results reveal a sharp decrease in profitability and a slight dip in revenue.

Financial Highlights

The standalone net profit for the year saw a substantial decrease of 47%, falling to ₹139.79 crore from ₹261.83 crore in the previous fiscal year. Revenue from operations also experienced a decline, albeit a more modest one, dropping by 4% to ₹602.72 crore from ₹627.06 crore.

Quarterly Performance

The company's quarterly results also reflected a downturn:

The net profit for the quarter stood at ₹8.87 crore, marking a significant decrease from ₹22.95 crore reported in the same quarter of the previous year.

Corporate Governance and Auditing

The Board of Directors has approved the audited financial results, which come with an unmodified audit opinion. This approval underscores the company's commitment to transparent financial reporting and adherence to accounting standards.

Business Segments

Mirza International operates primarily in the footwear segment, with its business divided into two main divisions:

1. Export Sales
2. Domestic Sales

This diversification in sales channels may help the company navigate market fluctuations and capitalize on both international and local market opportunities.

Corporate Actions

In a significant development, Mirza International has proposed a scheme of amalgamation with its wholly-owned subsidiary, TNS Hotels and Resorts. This strategic move is currently pending approval from the National Company Law Tribunal (NCLT). The amalgamation, if approved, could potentially streamline operations and create synergies within the company's business structure.

While the financial results show a challenging year for Mirza International, the company's efforts to restructure through the proposed amalgamation may indicate a proactive approach to addressing these challenges. Investors and market watchers will likely keep a close eye on how these strategic moves impact the company's future performance in the competitive footwear industry.

Shares of Mirza International , a prominent footwear company, have witnessed a remarkable rally, surging over 30% in just two trading sessions. The stock's performance has turned positive for the year, overcoming recent underperformance and catching investors' attention.

Sharp Price Movement

On Wednesday, Mirza International's stock climbed 13.00%, building on Tuesday's impressive 15.00% gain. This robust two-day performance has propelled the stock to ₹42.61, inching closer to its 52-week high of ₹48.00. The recent uptick has also pushed the stock above both its 50-day and 200-day moving averages, signaling potential bullish sentiment among traders.

Surge in Trading Volume

The rally was accompanied by a significant increase in trading activity. Wednesday saw over 30 lakh shares changing hands, a stark contrast to the 20-day average of approximately 70,000 shares. This surge in volume suggests heightened investor interest in the stock.

Corporate Developments

The stock's upward movement comes in the wake of news regarding Mirza's demerged entity, Redtape. The company confirmed that the Income Tax department had conducted searches, but assured stakeholders that it had fully cooperated with the authorities. Redtape also stated that its business operations continue as usual, which may have helped alleviate investor concerns.

Sector Tailwinds

The footwear sector, in general, may be benefiting from recent changes in the Goods and Services Tax (GST) structure. Footwear priced up to ₹2,500 is now taxed at a lower rate of 5.00%, down from the previous 12.00%. This reduction could potentially boost consumer demand and benefit companies like Mirza International.

Market Outlook

As Mirza International approaches its 52-week high, investors and analysts will be closely watching the stock's performance in the coming days. The combination of strong price action, increased trading volumes, and potentially favorable sector dynamics has brought this footwear stock into the spotlight.

Investors are advised to conduct thorough research and consider their risk appetite before making investment decisions, as past performance does not guarantee future results.