RedTape is a distinguished Indian fashion and lifestyle label celebrated for its range of footwear, clothing, and accessories catering to both men and women. Founded in 1996, it was among the pioneer Indian footwear brands to expand into international markets, such as the UK and the US.
The Indian footwear manufacturer Redtape Limited is poised to announce a bonus share issue and an interim dividend in its forthcoming board meeting.
According to a filing with the stock exchange, the meeting is scheduled for this week, specifically on December 26, 2024. The company has also set the record date for the proposed interim dividend, contingent upon approval by the Board.
In its exchange filing, the company conveyed a proposal for an interim dividend on both equity and preference shares for the fiscal year 2024-25. The record date to determine which members are eligible to receive the interim dividend, should it be approved by the Board of Directors, has been established as Friday, January 3, 2025.
Regarding the bonus issue, the company indicated in the upcoming board meeting a proposal for distributing bonus equity shares to its equity shareholders.
Redtape Limited’s financial results for the second quarter of fiscal year 2025 (Q2 FY25) presented a mixed picture. The company’s consolidated net profit fell by 9.63% YoY, recording ₹25.07 crore, down from ₹27.74 crore during the same quarter in the previous fiscal year.
While Q2 FY25 revenue experienced a substantial increase of 28.05% YoY, reaching ₹415.80 crore, the decline in net profit was attributed to a significant rise in total expenses, which soared to ₹384.24 crore from ₹291.31 crore in Q2 FY24. This increase was mainly due to a 9.01% rise in material costs, a substantial 40.53% surge in employee expenses, and a 24.6% increase in finance costs. Consequently, profit before tax (PBT) saw a slight decline, falling to ₹34.92 crore from ₹35.80 crore a year earlier.
As of 12:40 PM, RedTape Limited’s share price stood at ₹866.40 on the NSE, reflecting an increase of over 1%. The company’s shares delivered positive returns to investors, boasting a one-year return of 90.32%.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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