Relaxo Footwears , India's largest footwear manufacturing company, has released its unaudited financial results for the first quarter, showcasing a mixed performance amid challenging market conditions. The company reported a 10.2% year-on-year increase in profit after tax (PAT) despite a 12.5% decline in revenue, highlighting its focus on operational efficiency and margin improvement.

Financial Highlights

• Revenue from operations stood at ₹654.49 crore, down from ₹748.19 crore in the same quarter last year
• EBITDA remained stable at ₹99.45 crore, with the EBITDA margin expanding by 198 basis points to 15.2%
• Profit After Tax increased to ₹48.90 crore, up from ₹44.37 crore in the same quarter last year
• PAT margin improved to 7.5%, compared to 5.9% in the corresponding quarter

Margin-Driven Recovery Strategy

Relaxo Footwear is implementing a margin-driven recovery strategy while facing demand softness in the market. The company is focusing on three key areas for long-term scalable growth:

1. Leveraging brand resilience
2. Strengthening retail operations
3. Improving cost efficiency

Management Commentary

Ramesh Kumar Dua, Chairman and Managing Director of Relaxo Footwear, commented on the results: "As we reflect on this quarter, it was a quarter that came with its share of challenges. Consumer demand remained muted, particularly in the mass and mid-market segments, while regional competition in general trade intensified from smaller players who have gained ground since the GST increase from 5% to 12% in 2022."

He further added, "Even as these pressures strained our ecosystem, we consciously avoided short-term tactics such as deep discounting while staying steadfast in our commitment to protect overall profitability. At the same time, we remained focused on our sales transformation journey and the expansion of our distribution network, steps that will place the business on a stronger footing in the future."

Operational Efficiency and Cost Management

The company's improved operating margins during the quarter were attributed to enhanced operational efficiencies, disciplined cost management, and streamlined backend processes. These productivity measures are expected to build a strong foundation for improved financial performance in the future.

Market Challenges and Future Outlook

Relaxo Footwear acknowledged the ongoing challenges in the market, including:

• Muted consumer sentiment, especially in the mass and mid-market segments
• Intense regional competition in the general distribution channel
• Continued impact of the GST increase from 5% to 12% implemented in 2022

Despite these challenges, the company remains optimistic about its long-term prospects. Mr. Dua stated, "While it will take some time for the topline to stabilize and improve, our long-term priority remains sustainable, profitable growth. The groundwork we are laying today gives us confidence in delivering stronger results in the quarters to come."

Conclusion

Relaxo Footwear's quarterly results demonstrate the company's ability to maintain profitability and improve margins in a challenging market environment. By focusing on operational efficiency, cost management, and strategic initiatives to strengthen its market position, Relaxo is positioning itself for sustainable growth in the long term. As the company continues to navigate market headwinds, investors and industry observers will be watching closely to see how its margin-driven recovery strategy unfolds in the coming quarters.

Relaxo Footwears Limited , India's largest footwear manufacturing company, has announced significant changes in its organizational structure along with its financial results for the first quarter.

Management Restructuring

The company has implemented changes to its Senior Management Personnel (SMP) classification due to an internal restructuring of the reporting hierarchy. As a result, four executives will no longer be classified as SMPs:

• Mr. Rakesh Singh Gautam (Vice President - Human Resource)
• Mr. Supriyam Vatsa (Sr. GM - Finance)
• Mr. Amit Roy (Sr. GM - Finance)
• Mr. Ajay Kumar Agarwal (GM - Finance)

It's important to note that these executives will continue their employment with Relaxo Footwears under the new reporting structure. The change took effect at the closure of business hours on July 30, 2025.

In addition, Mr. Ankit Jain, Company Secretary and Compliance Officer, has resigned from his position. He submitted his resignation letter on June 20, 2025, citing personal and professional aspirations. His resignation will be effective from the close of business hours on August 19, 2025.

Q1 Financial Performance

Relaxo Footwears has released its unaudited financial results for the quarter ended June 30. Here are the key highlights:

The company's revenue from operations decreased by 12.5% year-over-year to ₹654.49 crore in the current quarter. Despite the revenue decline, Relaxo Footwears managed to improve its profitability:

• EBITDA remained relatively stable at ₹99.45 crore, with a marginal increase of 0.6% compared to the same quarter last year.
• EBITDA margin expanded by 198 basis points to 15.2%, up from 13.2% in the previous year's corresponding quarter.
• Profit After Tax (PAT) grew by 10.2% to ₹48.90 crore, with the PAT margin improving to 7.5% from 5.9% in the corresponding quarter of the previous year.

Management Commentary

Ramesh Kumar Dua, Chairman and Managing Director of Relaxo Footwears, commented on the results: "As we reflect on this quarter, it was a period that came with its share of challenges. Consumer demand remained muted, particularly in the mass and mid-market segments, while regional competition in general trade intensified from smaller players who have gained ground since the GST increase from 5% to 12% in 2022."

He further added, "Encouragingly, we were able to improve operating margins during the quarter through enhanced operational efficiencies, disciplined cost management and streamlined backend processes. These productivity measures will help build a strong foundation for improved financial performance ahead."

Other Corporate Actions

In addition to the financial results and management restructuring, Relaxo Footwears also announced:

1. The cancellation of 4,800 options granted to one employee under the 4th phase of RFL Employee Stock Option Plan 2014, as the legal heir(s) of the deceased employee did not exercise the vested options within the prescribed period.

2. The approval of the Notice for the 41st Annual General Meeting (AGM) to be held on August 28, through video conferencing.

As Relaxo Footwears navigates through a challenging market environment, the company remains focused on operational efficiencies and long-term growth strategies. The management restructuring and improved profitability metrics indicate the company's efforts to streamline operations and enhance performance in a competitive landscape.