Relaxo Footwears Ltd. Results

H1FY25 & Q2FY25 Result Announced for Relaxo Footwears Ltd.

Footwear company Relaxo Footwears announced H1FY25 & Q2FY25 results Q2FY25 Financial Highlights: Revenue at Rs 679 crore in Q2FY25 as compared to Rs 715 crore in Q2FY24. This is mainly due to weak market demand during the quarter. EBITDA at Rs 88 crore in Q2FY25 as against Rs 92 crore in corresponding quarter of previous year. The company maintained its EBITDA margin at 12.9% during the quarter as compared to 12.8% in Q2FY24, despite subdued demand. Profit after Tax at Rs 37 crore in Q2FY25 as compared to Rs 44 crore in Q2FY24. H1FY25 Financial Highlights: Revenue at Rs 1,428 crore in H1FY25 as compared to Rs 1,454 crore in H1FY24. EBITDA at Rs 187 crore in H1FY25 as against Rs 199 crore in H1FY24. EBITDA margin stood at 13.1% in H1FY25 as compared to 13.7% in H1FY24. Profit after Tax at Rs 81 crore in H1FY25 as compared to Rs 101 crore in H1FY24. PAT margin stood at 5.7% in H1FY25 as compared to 6.9% in H1FY24. Ramesh Kumar Dua, Chairman and Managing Director said: “The company reported a decline in revenues during the quarter as the overall demand remained subdued. During the quarter, the industry witnessed an increase in lower priced unorganized competition, which led to downtrading by consumers in a high inflation environment. Margin pressure was also high from organized trade channels. The company took a call to not dilute pricing and margins to unsustainable levels due to which we were able to maintain our operating margins during the quarter. However, higher depreciation in the quarter has impacted the net profit of the company. The company has been sanctioned a grant of Rs 10.00 crore, which is 50% of total expenses i.e., Rs 20.00 crore for Design Studio, under Indian Footwear and Leather Development Programme (IFLDP) that will boost our focus on best-in-class technological upgradation and advanced level of designs. The company is in the process of adding new distributors to our network, to ensure Relaxo’s presence in each district of the country. To improve our reach and market penetration, we launched a retailer connect initiative through ‘Relaxo Parivaar’ mobile application. This has shown an encouraging response with reach of over 70,000 retail outlets and has been driving consistent month on month improvement in secondary sales. To drive premiumization, we have collaborated with global brands viz. ‘Disney’ and ‘Marvel’, launching a new collection featuring ‘Disney’ and ‘Marvel’ themes. Further, in line with our continued focus on cost efficiencies, we are working on optimizing our backend operations, which would enable the company to deliver a sustainable performance in future."

Q1FY25 Quarterly Result Announced for Relaxo Footwears Ltd.

Footwear company Relaxo Footwears announced Q1FY25 results: Revenue at Rs 748 crore, in Q1FY25 as compared to Rs 739 crore in Q1FY24. EBITDA at Rs 99 crore in Q1FY25 as against Rs 108 crore in corresponding quarter of previous year. Profit after Tax at Rs 44 crore in Q1FY25 as compared to Rs 56 crore in Q1FY24. Commenting on the results and performance, Ramesh Kumar Dua, Chairman and Managing Director said: “The company reported nominal revenue increase during the quarter, largely due to weak consumer sentiments driven by election related disruptions and severe heat conditions in many parts of India. We operate in a labour intensive industry which was impacted by an abnormal increase in minimum wages as mandated by the government. We decided not to pass on the higher costs to consumers in the current subdued market conditions, which has impacted profitability in this quarter. Capex incurred to manufacture higher volumes in the future have also led to higher depreciation expenses in this quarter. We have undertaken major sales transformation initiatives to enhance our connect with distributors, retailers and consumers, and with a favourable monsoon expected, we are optimistic about sales growth in the coming quarters. The company is undertaking cost optimization initiatives which will help to improve overall performance of the company during this year.”

Q4FY24 Quarterly & FY24 Annual Result Announced for Relaxo Footwears Ltd.

Relaxo Footwears announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Revenue at Rs 747 crore in Q4FY24 as compared to Rs 765 crore in Q4 FY23, a marginal decline of 2% YoY. This is attributed to a slight decline in overall volumes, which was partly offset by improved average realisation. EBITDA at Rs 120 crore in Q4FY24 as against Rs 118 crore in corresponding quarter of previous year, registered YoY growth of 2%. EBITDA margin stood at 16.1% during the quarter as compared to 15.4% in Q4 FY23, up by 69 bps. Profit after Tax at Rs 61 crore in Q4FY24 as compared to Rs 63 crore in Q4 FY23. PAT Margin stood at 8.2% in Q4FY24 as compared to 8.3% in the corresponding quarter of previous year. FY24 Financial Highlights: Revenue at Rs 2,914 crore in FY24, an increase of 5% as compared to Rs 2,783 crore in FY23. EBITDA at Rs 407 crore in FY24, up by 21%, from Rs 336 crore in FY23. EBITDA margin stood at 14.0% in FY24 as compared to 12.1% in FY23, improved by 188 bps. Profit after Tax at Rs 200 crore in FY24, up from Rs 154 crore in FY23 reported an improvement of 30% YoY. PAT Margin at 6.9% in FY24 as compared to 5.6% in FY23, up by 133 bps. Commenting on the results and performance, Ramesh Kumar Dua, Chairman and Managing Director said: “We have achieved a moderate increase in revenue for FY24, with a notable improvement in profitability. This performance was largely driven by a significant uptick in open-footwear volumes, a testament to the efficacy of our strategic initiatives to regain market share. During the quarter, the company has implemented Quality Control Orders as issued by the Bureau of Indian Standards (BIS) and now all our products are ISI marked. This year, we have taken major sales transformation initiatives to enhance our connect with distributors, retailers and consumers. We have undertaken a major digital initiative to have our retailers directly connected with the company through our ‘Relaxo Parivaar’ app. In a short time frame, we have achieved an industry leading retailer connect through the app and expect this to grow further in the coming year. To help our distributors drive secondary sales to retailers, we have equipped them with a revamped Distributor Management System. We are also expanding our ecommerce operations by directly selling to consumers using ‘Brand as a Seller’ model on all major ecommerce platforms. These initiatives will help the company to improve our market connect and have a positive impact on growth.”

Q3FY24 Quarterly & 9MFY24 Result Announced for Relaxo Footwears Ltd.

Relaxo Footwears announced Q3FY24 & 9MFY24 results: Highlights for Q3FY24: Revenue reached Rs 713 crore, showing a 5% YoY growth compared to Rs 681 crore in Q3FY23. The growth is attributed to higher sales volumes during the period. EBITDA stood at Rs 87 crore in Q3FY24, reflecting a 21% YoY growth from Rs 72 crore in the corresponding quarter of the previous year. The EBITDA margin increased to 12.2%, up by 162 bps from 10.6% in Q3FY23, driven by softening raw material prices and operational efficiencies. Profit after Tax reached Rs 39 crore in Q3FY24, marking a 28% YoY increase from Rs 30 crore in Q3FY23. The PAT margin improved by 99 bps, standing at 5.4% in Q3FY24 compared to 4.4% in the corresponding quarter of the previous year. Highlights for 9MFY24: Revenue reached Rs 2,167 crore, reflecting a 7% increase compared to Rs 2,018 crore in 9MFY23. EBITDA stood at Rs 286 crore in 9MFY24, showing a significant 31% increase from Rs 218 crore in 9MFY23. The EBITDA margin improved to 13.2%, up by 242 bps from 10.8% in 9MFY23. Profit after Tax reached Rs 139 crore in 9MFY24, marking a substantial 53% YoY improvement from Rs 91 crore in 9MFY23. The PAT margin increased to 6.4% in 9MFY24, up by 190 bps from 4.5% in 9MFY23. Commenting on the results and performance, Ramesh Kumar Dua, Managing Director said: “We have achieved a modest performance during the quarter, both in terms of revenue and profitability, as the market continues to remain challenging. The volume growth in open footwear has significantly contributed to positive momentum. Softening of raw material prices on a YoY basis has contributed to better margins, which was partly offset by increased expenses. To have a direct connection with consumers and to control discounts, we have started selling products on marketplaces as “Brand As Seller” and on the company’s website. We are initiating direct connect programs with Multiple Brand Outlets by offering direct benefits to retailers. We anticipate that these strategic initiatives will improve our growth going forward.”