Relaxo Footwears Ltd Share Price – NSE /  BSE

Leather, Small Cap

Profit before tax (PBT) was at Rs 44.61 crore in the third quarter of FY25, down 12.24% as against Rs 50.83 crore in Q3 FY24.

Total expenses fell 5.81% YoY to Rs 629.09 crore in the quarter ended 31st December 2024. Cost of material consumed, including packing material was at Rs 227.08 crore (down 13.73% YoY) and employee benefits expenses stood at Rs 96 crore (down 0.04% YoY) during the quarter.

EBITDA declined by 4% to Rs 83 crore in Q3 FY25, compared to Rs 87 crore in Q3 FY24. However, the company maintained its EBITDA margin at 12.5% for the quarter, up from 12.2% in Q3 FY24.

On a 9-month basis, the company’s net profit declined by 17.95% to Rs 114.11 crore, while revenue from operations dropped by 3.34% to Rs 2,094.46 crore in 9M FY24 compared to 9M FY23.

Ramesh Kumar Dua, chairman and MD said, “Given the overall weak consumer demand, particularly in the mass and value segments, the Company’s continued focus has been to revamp the distribution system. The introduction of the “Relaxo Parivaar” app has not only helped us to increasingly streamline our network of distributors and retailers but is also setting the stage for the future expansion of this network.

We believe this effort, while exhibiting short term pain over the last few quarters in terms of decline in volumes, is slowly getting accepted by all business partners. We expect our distribution system to stabilise over the next 2-3 quarters and are hopeful that the results will begin to show post that.

Furthermore, we continue to improve our online presence through the “Brand as a Seller” model and are regularly launching exclusive offerings which shall contribute to the growth of this important channel. On the cost front, our focus remains on cost optimization efforts targeting operational efficiencies and involves the Company’s manufacturing facilities as well as the vendors.

We are confident that the curated investments that we have undertaken in this depressed market scenario will set the stage for growth and profitability in the medium to longer term.”

Relaxo Footwears is engaged in production of Hawaii slippers, light weight slippers, canvas shoes, PVC footwear etc.

Shares of Relaxo Footwears declined 0.71% to Rs 545.85 on the BSE.

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Net profit of Relaxo Footwears declined 14.42% to Rs 33.01 crore in the quarter ended December 2024 as against Rs 38.57 crore during the previous quarter ended December 2023. Sales declined 6.43% to Rs 666.90 crore in the quarter ended December 2024 as against Rs 712.71 crore during the previous quarter ended December 2023.

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Relaxo Footwears will hold a meeting of the Board of Directors of the Company on 31 January 2025.

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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.”

Relaxo Footwears is engaged in production of Hawaii slippers, light weight slippers, canvas shoes, PVC footwear etc.

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