Half-yearly performance boosts Apex Footwear’s market cap by 9.44%

The market capitalization of Apex Footwear rose by 9.44% to Tk394 crore last week, following the company’s announcement of a 42% increase in revenue and profit during H1 FY2023. Despite ongoing inflationary pressure, Apex Footwear was able to perform well in both local and export markets, which analysts attribute to the company’s successful management of inflationary pressure.

Investors were attracted to Apex Footwear, resulting in an increase in their returns from the company’s shares. Institutional investors also boosted their holdings in the company by 2 percentage points.

Apex Footwear’s share prices reached Tk306 last week, a 17% increase and the highest level in five months, according to Dhaka Stock Exchange (DSE) data. The company topped the weekly gainer list.

The financial report filed by Apex Footwear on the DSE showed a 42% increase in revenue to Tk801 crore and a 42% increase in net profit to Tk6.77 crore YoY during July to December. The company attributes its increased profit to the high value of the dollar in exports and increased local sales due to discounts on shoes.

According to Dilip Kajuri, the Deputy Managing Director and CFO of Apex Footwear, the company made 16.02% more profit from exports and saw a rise in local sales volume due to discounts on shoes. Despite an increase in expenses, including TDS on export proceeds, Apex Footwear’s profits increased due to strong export and local sales.