For
the quarter ending Dec 2023, standalone Net sales (including other operating income) of Relaxo Footwears has increased 4.65% to Rs 712.71 crore compared to quarter ended Dec 2022. Operating profit margin has jumped from 10.61% to 12.23%, leading to 20.65% rise in operating profit to Rs 87.17 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 44.41% to 38.06%. Purchase of finished goods cost rose from 3.03% to 3.21%. Employee cost increased from 12.55% to 13.89%. Other expenses rose from 29.49% to 32.24%. Other income up 35.52% to Rs 5.99 crore. PBIDT rose 21.51% to Rs 93.16 crore. Provision for interest up 17.23% to Rs 4.83 crore.
PBDT rose 21.75% to Rs 88.33 crore. Provision for depreciation rose 17.30% to Rs 37.5 crore.
Profit before tax grew 25.26% to Rs 50.83 crore. Provision for tax was expense of Rs 12.26 crore, compared to Rs 10.48 crore. Effective tax rate was 24.12% compared to 25.83%.
Profit after tax rose 28.14% to Rs 38.57 crore.
Promoters’ stake was 71.27% as of 31 December 2023 ,compared to 71.02% as of 31 December 2022 .
For year-to-date (YTD) results analysis
Net sales (including other operating income) of Relaxo Footwears has increased 7.39% to Rs 2,166.85 crore.
Operating profit margin has jumped from 10.79% to 13.21%, leading to 31.42% rise in operating profit to Rs 286.24 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 44.80% to 39.87%. Purchase of finished goods cost fell from 2.75% to 2.68%. Employee cost increased from 12.89% to 13.36%. Other expenses rose from 28.68% to 30.88%. Other income up 67.02% to Rs 23.8 crore. PBIDT rose 33.61% to Rs 310.04 crore. Provision for interest fell 7.15% to Rs 14.03 crore.
PBDT rose 36.45% to Rs 296.01 crore. Provision for depreciation rose 18.07% to Rs 109.03 crore. Profit before tax grew 50.06% to Rs 186.98 crore. Provision for tax was expense of Rs 47.9 crore, compared to Rs 33.43 crore. Effective tax rate was 25.62% compared to 26.83%.Profit after tax rose 52.55% to Rs 139.08 crore. Promoters’ stake was 71.27% as of 31 December 2023 ,compared to 71.02% as of 31 December 2022 .
Full year results analysis
Net sales (including other operating income) of Relaxo Footwears has increased 4.88% to Rs 2,782.77 crore. Operating profit margin has declined from 15.67% to 12.07%, leading to 19.24% decline in operating profit to Rs 335.78 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 46.29% to 43.74%. Purchase of finished goods cost fell from 2.87% to 2.72%. Employee cost increased from 11.85% to 12.69%. Other expenses rose from 24.28% to 28.44%. Other income fell 21.71% to Rs 18.57 crore. PBIDT fell 19.37% to Rs 354.35 crore. Provision for interest up 25.51% to Rs 19.24 crore. Loan funds declined from Rs 174.04 crore as of 31 March 2022 to Rs 164.08 crore as of 31 March 2023. Inventories declined from Rs 673.25 crore as of 31 March 2022 to Rs 563.78 crore as of 31 March 2023. Sundry debtors were higher at Rs 270.34 crore as of 31 March 2023 compared to Rs 250.79 crore as of 31 March 2022. Cash and bank balance rose to Rs 74.01 crore as of 31 March 2023 from Rs 12.57 crore as of 31 March 2022. Investments rose to Rs 225.28 crore as of 31 March 2023 from Rs 194.25 crore as of 31 March 2022 .
PBDT fell 20.99% to Rs 335.11 crore. Provision for depreciation rose 10.18% to Rs 125.1 crore. Fixed assets increased to Rs 1,207.24 crore as of 31 March 2023 from Rs 1,103.84 crore as of 31 March 2022. Intangible assets declined from Rs 32.38 crore to Rs 31.94 crore.
Profit before tax down 32.39% to Rs 210.01 crore. Provision for tax was expense of Rs 55.54 crore, compared to Rs 77.92 crore. Effective tax rate was 26.45% compared to 25.09%.
Profit after tax fell 33.61% to Rs 154.47 crore.
Promoters’ stake was 71.25% as of 31 March 2023 ,compared to 70.78% as of 31 March 2022 .
Cash flow from operating activities increased to Rs 400.07 crore for year ended March 2023 from Rs 55.99 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 185.19 crore, compared to Rs 139.51 crore during the year ended March 2022.
Management Comments :
Mr. 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 Y-o-Y basis has contributed to
better margins, which was partly offset by increased expenses. To have direct
connect with consumers and to control discounts, we have started selling
products on market places as “Brand As Seller” and at company’s website. We are
initiating direct connect programs with Multiple Brand Outlets by offering
direct benefit to retailers. We anticipate that these strategic initiatives
will improve our growth going forward.”