Relaxo Footwears FY20 Revenue up 5% YoY at Rs. 2410 crore

Relaxo Footwears Limited, India's largest Footwear manufacturing company, declared its Audited Financial Results for the Quarter & Full Year ended 31st March, 2020.

Highlights for Q4 FY20

- Revenue fell by 15% to Rs. 541 crore as compared to Rs. 636 crore in the corresponding period of the previous year. The growth for the Q4 is adversely effected due to nationwide lockdown in the month of March 20, though the revenue of the Company had grown @12.89% till Dec 19.

- EBITDA is Rs. 96 crore as compared to Rs. 95 crore in the corresponding period of the previous year. EBITDA margins improved by 282 basis Y-o-Y to 17.8% due to premiumization and favorable raw material prices. However, absolute EBITDA improved nominally because of impact on revenue due to lockdown. EBITDA margins adjusted to IND AS 116, stand at 15.7%.

- Finance cost increased from 2 crore to 4 crore and depreciation increased from 16 crore to 28 crore in the current quarter. The increase is mainly due to new accounting standards (IND AS 116).

- Profit after Tax at Rs. 52 crore as compared to Rs. 54 crore in the corresponding period of the previous year. PAT Margins increased by 102 basis Y-o-Y to 9.6%. The drop in profits is due to adverse impact on sales because of nationwide lockdown in March-2020.

Highlights for FY20

- Revenue up by 5% to Rs. 2410 crore as compared to Rs. 2292 crore in the corresponding period of the previous year. Due to the impact of nationwide lockdown the revenue growth dropped to 5% from 12.89% till Dec 19.

- EBITDA at Rs. 409 crore as compared to Rs. 324 crore in the corresponding period of the previous year. EBITDA margins increased by 282 basis Y-o-Y to 17%. EBITDA margins adjusted to IND AS 116, stand at 15.1%.

- Profit after Tax at Rs. 226 crore as compared to Rs. 175 crore in the corresponding period of the previous year. PAT Margins increased by 174 basis Y-o-Y to 9.4%. The increase is primarily due to exercising the option of lower tax rate of 25.168% (inclusive of surcharge and cess) by the Company.

Commenting on the results and performance, Mr. Ramesh Kumar Dua, Managing Director said: "The Company has delivered a healthy performance for the year, despite the sharp slowdown in Q4 due to COVID-19. The Company achieved a 29% growth in profitability in FY20, helped by our robust cost control initiatives and manufacturing excellence. We continue to drive business growth through our consumer centric approach and continuous focus on quality improvement.

During the ongoing crisis, we are undertaking all necessary measures to ensure safety and well-being of our employees and partners. The Company is strictly adhering to Government guidelines and have started operations in various plants/offices. Prior to starting of operations, we have developed detailed SOP for safety of its employees. Proper equipment and sanitization material has been provided at all locations. We continue to support and provide assistance to our dealers, distributors and customers.

Due to nationwide lockdown overall demand for overall footwear is subdued but demand for open slipper segment has improved during the period. However due to restrictions in manufacturing operations fulfilment of such demand will be a challenge in short term.

The Company has paid all long term debts in FY20 and its liquidity position is comfortable. Moreover with start of business activities the liquidity position of the Company will continue to be comfortable.

Relaxo has always been one of the most trusted brands and we believe that the Company is well placed to emerge stronger in the post COVID-19 world. We will continue to adopt strategic initiatives to strengthen our brand positioning, improve our product innovation and expansion into newer geographies."

Shares of RELAXO FOOTWEARS LTD. was last trading in BSE at Rs.756.9 as compared to the previous close of Rs. 776.1. The total number of shares traded during the day was 9447 in over 1125 trades.

The stock hit an intraday high of Rs. 779.5 and intraday low of 752.5. The net turnover during the day was Rs. 7205953.

Source : Equity Bulls

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