A large cap consumer discretionary firm, Relaxo Footwears closed today with a market valuation of ₹22,139.35 Cr. One of the largest footwear manufacturers in India is Relaxo Footwear.
“The Board of Directors in their meeting held on today, i.e. May 10, 2023, recommended final dividend at the rate of INR 2.50/- per equity share (i.e. 250%) of face value of INR 1/- (Rupees One only) each for the year ended March 31, 2023, for the approval of members in the forthcoming Annual General Meeting (AGM) of the Company,” said Relaxo Footwears in a stock exchange filing.
The company's revenue rose by 10% Y-o-Y to Rs. 765 crores in Q4FY23 from Rs. 698 crores in Q4FY22 as a result of volume growth in all categories. During the quarter ended March 2023, its EBITDA reached ₹118 Cr up by 6% YoY from ₹111 Cr recorded during the quarter ended March 2022. EBITDA margin was 15.4% in Q4FY23 compared to 15.9% in the same quarter last year.
The company’s net profit was flat at Rs. 63 Crores in Q4FY23 whereas PAT Margin stood at 8.3% as compared to 9.0% in Q4FY22.
Commenting on the results and performance, Mr. Ramesh Kumar Dua, Managing Director said “We are pleased with the performance of your company in Q4FY23, which was supported by substantial business growth across all segments as compared to previous quarters. Despite the challenging environment last year, our strong team responded effectively, and we remain committed to maintaining our high standards of excellence that have made us successful. Our price correction efforts have resulted in good momentum as we continue to recover our market share in all major segments without relying on discounts or offers. Our strong brand identity, robust distribution channels and effective marketing strategies have facilitated our growth across categories, backed by our strong manufacturing facilities.”
“Raw material prices have stabilized, enabling us to offer competitive prices in the market. Additionally, majority of the high cost old inventory has been liquidated & now new inventory with lower costs has started going to the markets, leading to improved margins this quarter. We are now a debt-free company with robust cash flow from operations, due to our strong working capital management. We believe these factors will help us to maintain our growth trajectory in the coming quarters. Looking ahead, we have a positive outlook for the industry and believe that our company is wellpositioned to capitalize on opportunities arising due to the increased per capita footwear consumption and growing share of the organized market. We are confident that our efforts will continue to yield positive results,” Ramesh Kumar Dua further added.
The shares of Relaxo Footwears closed today on the NSE at ₹888 apiece level down by 1.31% from the previous close of ₹899.80.
