Hot Pursuit     09-Nov-24
Relaxo Footwears Q2 PAT slides 17% YoY to Rs 37 cr
Relaxo Footwears' net profit decreased 16.88% to Rs 36.73 crore on 5.02% fall in revenue from operations to Rs 679.37 crore in Q2 FY25 over Q2 FY24.
Profit before tax was at Rs 49.57 crore in the second quarter of FY25, down 17.90% as against Rs 60.38 crore in Q2 FY24.

Total expenses fell 4.36% YoY to Rs 636.44 crore in September 2024 quarter. Cost of material consumed, including packing material was at Rs 282.84 crore (down 2.98% YoY) and employee benefits expenses stood at Rs 106.21 crore (up 10.92% YoY) during the quarter.

EBITDA declined by 4.34% to Rs 88 crore in Q2 FY25 from Rs 92 crore recorded in Q2 FY24. The company maintained its EBITDA margin at 12.9% during the quarter as compared to 12.8% in Q2 FY24, despite subdued demand.

On half year basis, the company’s net profit declined 19.31% to Rs 81.10 crore on 1.82% fell in revenue from operations to Rs 1,427.56 crore in H1 FY25 over H1 FY24.

Ramesh Kumar Dua, chairman and MD 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.”

Shares of Relaxo Footwears fell 1.22% to Rs 769.35 on Friday, 8 November 2024.

Previous News
  Relaxo Footwears fixes record date for dividend
 ( Market Beat - Reports 31-Jul-24   18:07 )
  Relaxo Footwears standalone net profit declines 8.42% in the March 2025 quarter
 ( Results - Announcements 10-May-25   07:36 )
  Relaxo Footwears
 ( Results - Analysis 09-May-25   20:11 )
  Relaxo Footwears standalone net profit declines 14.42% in the December 2024 quarter
 ( Results - Announcements 01-Feb-25   07:42 )
  Market opens on positive note; breadth strong
 ( Market Commentary - Mid-Session 10-May-24   09:40 )
  Relaxo Footwears grants 8,600 stock options
 ( Corporate News - 31-Jul-24   18:05 )
  Relaxo Footwears Q4 PAT declines 3% YoY to Rs 61 cr
 ( Hot Pursuit - 10-May-24   10:05 )
  Relaxo Footwears fixes record date for final dividend
 ( Market Beat - Reports 29-Jul-21   20:06 )
  Relaxo Footwears standalone net profit declines 22.17% in the December 2021 quarter
 ( Results - Announcements 29-Jan-22   15:24 )
  Relaxo Footwears Q3 PAT slumps 14% YoY to Rs 33 cr
 ( Hot Pursuit - 01-Feb-25   09:44 )
  Relaxo Footwears fixes record date for dividend
 ( Market Beat - Reports 25-Jul-23   10:36 )
Other Stories
  RBL Bank Q1 PAT tanks 46% YoY to Rs 200 crore
  19-Jul-25   16:49
  HDFC Bank Q1 PAT jumps 12.24% YoY; declares 1:1 bonus and special dividend
  19-Jul-25   16:23
  ICICI Bank Q1 PAT rises 15% YoY to Rs 12,768 crore
  19-Jul-25   16:12
  Yes Bank Q1 PAT climbs 59% YoY to Rs 801 cr
  19-Jul-25   14:49
  RIL Q1 PAT jumps 76.5% YoY to Rs Rs 30,783 cr
  19-Jul-25   09:13
  JSW Steel rises as Q1 PAT zooms 158% YoY to Rs 2,209 cr
  18-Jul-25   16:27
  BEML bags contract worth Rs 186 crore from Ministry of Defence
  18-Jul-25   15:18
  Mahindra EPC Irrigation gains after Q1 PAT turns positive to Rs 1 cr
  18-Jul-25   15:15
  Granules India CFO Dr. Kandiraju Venkata Sitaram Rao resigns
  18-Jul-25   15:08
  Clean Science & Technology Ltd leads losers in 'A' group
  18-Jul-25   15:00
Back Top