On standalone basis
Quarter ended September 2024 compared with Quarter ended September 2023.
Net sales (including other operating income) of Relaxo Footwears has declined 5.03% to Rs 679.37 crore. Operating profit margin has jumped from 12.79% to 12.90%, leading to 4.22% decline in operating profit to Rs 87.66 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 40.49% to 38.90%. Purchase of finished goods cost rose from 2.01% to 4.08%. Employee cost increased from 13.30% to 14.61%. Other expenses fell from 31.49% to 30.35%. Other income fell 37% to Rs 6.64 crore. PBIDT fell 7.60% to Rs 94.3 crore. Provision for interest up 5.06% to Rs 4.98 crore. Loan funds declined from Rs 224.95 crore as of 30 September 2023 to Rs 211.85 crore as of 30 September 2024. Inventories rose to Rs 669.51 crore as of 30 September 2024 from Rs 548.28 crore as of 30 September 2023. Sundry debtors were lower at Rs 311.98 crore as of 30 September 2024 compared to Rs 318.74 crore as of 30 September 2023. Cash and bank balance declined from Rs 129.47 crore as of 30 September 2023 to Rs 62.51 crore as of 30 September 2024. Investments declined from Rs 182.35 crore as of 30 September 2023 to Rs 133.88 crore as of 30 September 2024. PBDT fell 8.22% to Rs 89.32 crore. Provision for depreciation rose 7.61% to Rs 39.75 crore. Fixed assets increased to Rs 1,392.26 crore as of 30 September 2024 from Rs 1,247.07 crore as of 30 September 2023. Intangible assets declined from Rs 26.86 crore to Rs 17.93 crore. Profit before tax down 17.90% to Rs 49.57 crore. Provision for tax was expense of Rs 12.84 crore, compared to Rs 16.19 crore. Effective tax rate was 25.90% compared to 26.81%. Profit after tax fell 16.88% to Rs 36.73 crore. Equity capital stood at Rs 24.89 crore as of 30 September 2024 to Rs 24.89 crore as of 30 September 2023. Per share face Value remained same at Rs 1.00. Promoters’ stake was 71.27% as of 30 September 2024 ,compared to 71.27% as of 30 September 2023 .
For year-to-date (YTD) results analysis
Net sales (including other operating income) of Relaxo Footwears has declined 1.83% to Rs 1,427.56 crore. Operating profit margin has declined from 13.69% to 13.07%, leading to 6.28% decline in operating profit to Rs 186.56 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 40.73% to 38.95%. Purchase of finished goods cost rose from 2.42% to 3.39%. Employee cost increased from 13.11% to 14.17%. Other expenses rose from 30.23% to 31.24%. Other income fell 32.23% to Rs 12.07 crore. PBIDT fell 8.41% to Rs 198.63 crore. Provision for interest up 7.28% to Rs 9.87 crore. Loan funds declined from Rs 224.95 crore as of 30 September 2023 to Rs 211.85 crore as of 30 September 2024. Inventories rose to Rs 669.51 crore as of 30 September 2024 from Rs 548.28 crore as of 30 September 2023. Sundry debtors were lower at Rs 311.98 crore as of 30 September 2024 compared to Rs 318.74 crore as of 30 September 2023. Cash and bank balance declined from Rs 129.47 crore as of 30 September 2023 to Rs 62.51 crore as of 30 September 2024. Investments declined from Rs 182.35 crore as of 30 September 2023 to Rs 133.88 crore as of 30 September 2024. PBDT fell 9.11% to Rs 188.76 crore. Provision for depreciation rose 10.25% to Rs 78.86 crore. Fixed assets increased to Rs 1,392.26 crore as of 30 September 2024 from Rs 1,247.07 crore as of 30 September 2023. Intangible assets declined from Rs 26.86 crore to Rs 17.93 crore. Profit before tax down 19.28% to Rs 109.90 crore. Provision for tax was expense of Rs 28.8 crore, compared to Rs 35.64 crore. Effective tax rate was 26.21% compared to 26.18%.Profit after tax fell 19.31% to Rs 81.10 crore. Equity capital stood at Rs 24.89 crore as of 30 September 2024 to Rs 24.89 crore as of 30 September 2023. Per share face Value remained same at Rs 1.00. Promoters’ stake was 71.27% as of 30 September 2024 ,compared to 71.27% as of 30 September 2023 . Cash flow from operating activities increased to Rs 144.31 crore for YTD ended September 2024 from Rs 135.13 crore for YTD ended September 2023. Cash flow used in acquiring fixed assets during the YTD ended September 2024 stood at Rs 65.98 crore, compared to Rs 67.55 crore during the YTD ended September 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 30 September 2024 to Rs 24.89 crore as of 30 September 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.
Management Comments :
Commenting on the results and performance, Mr.
Ramesh Kumar Dua, 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 Crores, which is 50% of total
expenses i.e., Rs. 20.00 Crores 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.”
| Relaxo Footwears : Standalone Results | | Quarter ended | Year to Date | Year ended |
|---|
| Particulars | 202409 | 202309 | Var.(%) | 202409 | 202309 | Var.(%) | 202403 | 202303 | Var.(%) |
|---|
| Net Sales (including other operating income) | 679.37 | 715.32 | -5.03 | 1,427.56 | 1,454.14 | -1.83 | 2,914.06 | 2,782.77 | 4.72 | | OPM (%) | 12.90 | 12.79 | 11 bps | 13.07 | 13.69 | -62 bps | 13.95 | 12.07 | 189 bps | | OP | 87.66 | 91.52 | -4.22 | 186.56 | 199.07 | -6.28 | 406.59 | 335.78 | 21.09 | | Other Inc. | 6.64 | 10.54 | -37.00 | 12.07 | 17.81 | -32.23 | 28.86 | 18.57 | 55.41 | | PBIDT | 94.30 | 102.06 | -7.60 | 198.63 | 216.88 | -8.41 | 435.45 | 354.35 | 22.89 | | Interest | 4.98 | 4.74 | 5.06 | 9.87 | 9.2 | 7.28 | 18.69 | 19.24 | -2.86 | | PBDT | 89.32 | 97.32 | -8.22 | 188.76 | 207.68 | -9.11 | 416.76 | 335.11 | 24.37 | | Depreciation | 39.75 | 36.94 | 7.61 | 78.86 | 71.53 | 10.25 | 147.49 | 125.1 | 17.90 | | PBT | 49.57 | 60.38 | -17.90 | 109.9 | 136.15 | -19.28 | 269.27 | 210.01 | 28.22 | | PBT before EO | 49.57 | 60.38 | -17.90 | 109.9 | 136.15 | -19.28 | 269.27 | 210.01 | 28.22 | | EO Income | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 49.57 | 60.38 | -17.90 | 109.9 | 136.15 | -19.28 | 269.27 | 210.01 | 28.22 | | Taxation | 12.84 | 16.19 | -20.69 | 28.8 | 35.64 | -19.19 | 68.8 | 55.54 | 23.87 | | PAT | 36.73 | 44.19 | -16.88 | 81.1 | 100.51 | -19.31 | 200.47 | 154.47 | 29.78 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 36.73 | 44.19 | -16.88 | 81.1 | 100.51 | -19.31 | 200.47 | 154.47 | 29.78 | | EPS (Rs)* | 1.48 | 1.78 | -16.88 | 3.26 | 4.04 | -19.31 | 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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