Relaxo Footwears Q1FY21 Profit After Tax at Rs. 24 crore

Relaxo Footwears Limited, India's largest Footwear manufacturing company, declared its Unaudited Financial Results for the first Quarter of FY21.

Highlights for Q1 FY21

- Revenue at Rs. 364 crore as compared to Rs. 648 crore in the corresponding period of the previous year. Revenue in Q1 is adversely affected due to complete nationwide lockdown till first week of May and significant disturbances during remaining period along with slowdown of economic activities.

- EBITDA at Rs. 57 crore as compared to Rs. 106 crore in the corresponding period of the previous year. EBITDA is impacted due to lower revenue due to impact of COVID related disruptions.

- Other income stood at Rs. 7 crore as compared to Rs. 1 crore in the corresponding period of the previous year. The increase is mainly on account of lease rent waiver/reduction of Rs. 5 crore agreed by lessors for our rented premises.

- Profit after Tax at Rs. 24 crore as compared to Rs. 50 crore in the corresponding period of the previous year.

Commenting on the results and performance, Mr. Ramesh Kumar Dua, Managing Director said: "Q1 was significantly impacted by headwinds of COVID-19 pandemic with complete nationwide lockdown extended till first week of May. However, we saw progressive signs of improvement as the restrictions were eased and this will further improve as India unlocks gradually. Despite challenges we remained profitable with comfortable liquidity position, which is a clear indication of our brand strength, organisation's capabilities and focus on cost efficiencies. We observed good demand in open footwear.

During the ongoing crisis, we have adopted several additional measures encompassing global best practices, across our offices and plants to keep our employees safe. We continue to support and provide assistance to our dealer, distributors, customers and communities across India. We continued strengthening our e-commerce footprint by leveraging our partnerships with major ecommerce players to provide a safe alternative for customers to order our products.

With our ethos like consumer centric approach, strengthening market share and continuous focus on quality improvement, Relaxo is well placed to emerge more resilient and energetic in the post COVID-19 world. We will continue to adopt strategic initiatives to strengthen our brand positioning and to give best in class experience to our consumers for creating long term value for all our stakeholders."

Shares of RELAXO FOOTWEARS LTD. was last trading in BSE at Rs.596.25 as compared to the previous close of Rs. 591.1. The total number of shares traded during the day was 75441 in over 11062 trades.

The stock hit an intraday high of Rs. 603 and intraday low of 578.2. The net turnover during the day was Rs. 44340369.

Source : Equity Bulls

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