Capitaline

Results 10-May-24

Analysis

Relaxo Footwears

PAT down 3.02%

For the quarter ending March 2024, standalone Net sales (including other operating income) of Relaxo Footwears has declined 2.32% to Rs 747.21 crore compared to quarter ended March 2023. Operating profit margin has jumped from 15.42% to 16.11%, leading to 2.01% rise in operating profit to Rs 120.35 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 40.74% to 38.06%. Purchase of finished goods cost rose from 2.61% to 3.52%. Employee cost increased from 12.12% to 12.96%. Other expenses rose from 27.78% to 29.85%.

Other income up 17.13% to Rs 5.06 crore. PBIDT rose 2.54% to Rs 125.41 crore. Provision for interest up 12.83% to Rs 4.66 crore. Loan funds rose to Rs 204.97 crore as of 31 March 2024 from Rs 164.08 crore as of 31 March 2023. Inventories rose to Rs 598.80 crore as of 31 March 2024 from Rs 563.78 crore as of 31 March 2023. Sundry debtors were higher at Rs 357.74 crore as of 31 March 2024 compared to Rs 270.34 crore as of 31 March 2023. Cash and bank balance rose to Rs 97.70 crore as of 31 March 2024 from Rs 74.01 crore as of 31 March 2023. Investments declined from Rs 225.28 crore as of 31 March 2023 to Rs 107.66 crore as of 31 March 2024.

PBDT rose 2.18% to Rs 120.75 crore. Provision for depreciation rose 17.40% to Rs 38.46 crore. Fixed assets increased to Rs 1,381.67 crore as of 31 March 2024 from Rs 1,207.24 crore as of 31 March 2023. Intangible assets declined from Rs 31.94 crore to Rs 22.70 crore.

Profit before tax down 3.65% to Rs 82.29 crore. Provision for tax was expense of Rs 20.9 crore, compared to Rs 22.11 crore. Effective tax rate was 25.40% compared to 25.89%.

Profit after tax fell 3.02% to Rs 61.39 crore.

Equity capital stood at Rs 24.89 crore as of 31 March 2024 to Rs 24.89 crore as of 31 March 2023. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 71.27% as of 31 March 2024 ,compared to 71.25% as of 31 March 2023 .

Full year results analysis

Net sales (including other operating income) of Relaxo Footwears has increased 4.72% to Rs 2,914.06 crore. Operating profit margin has jumped from 12.07% to 13.95%, leading to 21.09% rise in operating profit to Rs 406.59 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 43.74% to 39.40%. Purchase of finished goods cost rose from 2.72% to 2.90%. Employee cost increased from 12.69% to 13.25%. Other expenses rose from 28.44% to 30.61%.

Other income up 55.41% to Rs 28.86 crore. PBIDT rose 22.89% to Rs 435.45 crore. Provision for interest fell 2.86% to Rs 18.69 crore. Loan funds rose to Rs 204.97 crore as of 31 March 2024 from Rs 164.08 crore as of 31 March 2023. Inventories rose to Rs 598.80 crore as of 31 March 2024 from Rs 563.78 crore as of 31 March 2023. Sundry debtors were higher at Rs 357.74 crore as of 31 March 2024 compared to Rs 270.34 crore as of 31 March 2023. Cash and bank balance rose to Rs 97.70 crore as of 31 March 2024 from Rs 74.01 crore as of 31 March 2023. Investments declined from Rs 225.28 crore as of 31 March 2023 to Rs 107.66 crore as of 31 March 2024.

PBDT rose 24.37% to Rs 416.76 crore. Provision for depreciation rose 17.90% to Rs 147.49 crore. Fixed assets increased to Rs 1,381.67 crore as of 31 March 2024 from Rs 1,207.24 crore as of 31 March 2023. Intangible assets declined from Rs 31.94 crore to Rs 22.70 crore.

Profit before tax grew 28.22% to Rs 269.27 crore. Provision for tax was expense of Rs 68.8 crore, compared to Rs 55.54 crore. Effective tax rate was 25.55% compared to 26.45%.

Profit after tax rose 29.78% to Rs 200.47 crore.

Equity capital stood at Rs 24.89 crore as of 31 March 2024 to Rs 24.89 crore as of 31 March 2023. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 71.27% as of 31 March 2024 ,compared to 71.25% as of 31 March 2023 .

Cash flow from operating activities decreased to Rs 235.12 crore for year ended March 2024 from Rs 400.07 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 249.39 crore, compared to Rs 185.19 crore during the year ended March 2023.

Other Highlights

The board recommended a final dividend at the rate of Rs 3 per share of face value of Re 1 each, aggregating to Rs 74.68 crore for the year ended March 31, 2024.

In FY24, Relaxo/Bahamas contributed 25% to total revenue, Flite 37% and sparx 38%.

In terms of channel wise mix, general trade contributed 76% to revenue in FY24. Modern trade contributed 10%, retail 9% and exports 5%.

Management Comments :
Mr. Ramesh Kumar Dua, 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 e[1]

commerce operations by directly selling to consumers using ‘Brand as a Seller’ model on all major e[1]

commerce platforms. These initiatives will help the company to improve our market connect and have a positive impact on growth.”

Relaxo Footwears : Standalone Results

	Quarter ended			Year ended
Particulars	202403	202303	Var.(%)	202403	202303	Var.(%)
Net Sales (including other operating income)	747.21	764.94	-2.32	2,914.06	2,782.77	4.72
OPM (%)	16.11	15.42	68 bps	13.95	12.07	189 bps
OP	120.35	117.98	2.01	406.59	335.78	21.09
Other Inc.	5.06	4.32	17.13	28.86	18.57	55.41
PBIDT	125.41	122.30	2.54	435.45	354.35	22.89
Interest	4.66	4.13	12.83	18.69	19.24	-2.86
PBDT	120.75	118.17	2.18	416.76	335.11	24.37
Depreciation	38.46	32.76	17.40	147.49	125.1	17.90
PBT	82.29	85.41	-3.65	269.27	210.01	28.22
PBT before EO	82.29	85.41	-3.65	269.27	210.01	28.22
EO Income	0	0	-	0	0	-
PBT after EO	82.29	85.41	-3.65	269.27	210.01	28.22
Taxation	20.9	22.11	-5.47	68.8	55.54	23.87
PAT	61.39	63.3	-3.02	200.47	154.47	29.78
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	61.39	63.3	-3.02	200.47	154.47	29.78
EPS (Rs)*	2.47	2.54	-3.02	8.05	6.21	29.78

* EPS is on current equity of Rs 24.89 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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