Relaxo Footwears reports 30% rise in FY24 net profit

Relaxo said the fall in revenue can be attributed to a slight decline in overall volumes, which was partly offset by improved average realisation. Shares of the firm were trading over 1% higher on Friday morning.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter stood at ₹120 crore, up 2% compared to the same period a year ago. EBITDA margins improved by 69 basis points (bps) to 16.1% during the quarter.

For the full financial year 2023-24, the company’s net profit surged 30% YoY to ₹200 crore. Revenue from operations grew 5% to ₹2,914 crore while EBITDA grew 21% to ₹407 crore during the year. EBITDA margin improved by 188 bps to 14%.

The company proposed a final dividend of ₹3 per share for FY24.

Ramesh Kumar Dua, Chairman and Managing Director at Relaxo Footwears said the company has taken a major sales transformation initiative to enhance its connection with distributors, retails and consumers. “We have achieved a moderate increase in revenue for FY24, with a notable improvement in profitability. This performance was largely driven by a significant uptick in open-footwear volumes,” he said.

Dua also pointed out that the firm is expanding its e-commerce operations by directly selling to consumers using ‘Brand as a Seller’ model on all major e-commerce platforms. These initiatives will help the firm to improve its market connect and have a positive impact on growth, he said.

Relaxo Footwears is a manufacturer of footwear and has nine manufacturing facilities across India with a capacity 10.5 lakh pairs per day. Shares of the company have lost over 5% since the beginning of the year. The stock has fallen over 2% in the last one year.