Q4FY21 Company Update - Relaxo Footwears - ICICI Direct

Relaxo Footwears' Q4FY21 print signifies the inherent strength of the business model to capture market share and ability to generate robust free cashflows. Revenue for the quarter increased 38% YoY to Rs. 747.7 crore (up 17% QoQ, two-year CAGR: 8%). Demand for low ticket size products like slippers/open sandals (~80% of product portfolio) has been more intense in recent times. Gross margins contracted 300 bps YoY to 56.8% due to rise in RM prices. However, on account of positive operating leverage, tight leash on operating overheads (employee & other expense as a percentage of sales fell 171 bps, 525 bps YoY), EBITDA margins expanded significantly by 400 bps YoY to 21.8% (Q3FY21: 22.1%). Absolute EBITDA grew 46% YoY (10% QoQ) to Rs. 162.9 crore. On account of healthy operational performance and higher other income (up 73% YoY to Rs. 6.9 crore) PAT nearly doubled YoY (up 13% QoQ) to Rs. 102.2 crore. The balance sheet has strengthened significantly with cash & investments at an all-time high of Rs. 345 crore vs. Rs. 4 crore in FY20 (FCF generation: ~Rs. 350 crore vs. Rs. 154 crore).

For details, click on the link below: Link to the Report

Shares of RELAXO FOOTWEARS LTD. was last trading in BSE at Rs.1102.9 as compared to the previous close of Rs. 1034.45. The total number of shares traded during the day was 80531 in over 6470 trades.

The stock hit an intraday high of Rs. 1144 and intraday low of 1034.8. The net turnover during the day was Rs. 86638719.

Source : Equity Bulls

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