Relaxo Footwears, India's largest footwear manufacturer, reported mixed Q1 results with a 10.2% increase in profit after tax (PAT) to ₹48.90 crore, despite a 12.5% decline in revenue to ₹654.49 crore. EBITDA remained stable at ₹99.45 crore, with the margin expanding by 198 basis points to 15.2%. The company is implementing a margin-driven recovery strategy, focusing on brand resilience, retail operations, and cost efficiency amid challenging market conditions. Management acknowledged ongoing challenges including muted consumer demand and intense regional competition but remains optimistic about long-term prospects.
30Jul 25
Relaxo Footwears Restructures Management and Reports Q1 Results
Relaxo Footwears Limited has implemented changes in its organizational structure, with four executives no longer classified as Senior Management Personnel. The company secretary has resigned. Despite a 12.5% decrease in revenue to ₹654.49 crore, Q1 financial results show improved profitability with EBITDA margin expanding to 15.2% and PAT growing by 10.2% to ₹48.90 crore. The company faces challenges in consumer demand but focuses on operational efficiencies.
Relaxo Footwears, a leading Indian footwear manufacturer, announced mixed Q1 results. Net profit increased to ₹489.00 million from ₹444.00 million year-over-year, while revenue declined to ₹6.55 billion from ₹7.48 billion. EBITDA remained stable at ₹995.00 million, with the EBITDA margin improving to 15.20% from 13.22%. Despite revenue challenges, the company demonstrated effective cost management and operational efficiency. Chairman Ramesh Kumar Dua emphasized the company's focus on its core strengths in the footwear segment.
13May 25
Relaxo Footwears Revamps Distribution System Amidst Volume Challenges
Relaxo Footwears is overhauling its distribution system to enhance operational efficiency. The company is optimizing its 'Relaxo Parivaar' app to improve connections with retailers and distributors. Despite facing short-term volume declines, management expects the new system to stabilize within 2-3 quarters, leading to positive results. This move underscores the importance of digital transformation in the footwear industry.
10May 25
Relaxo Footwear Faces Headwinds in Mid-Range Segment, Initiates Distribution Overhaul
Relaxo Footwear reports a decline in topline performance due to weak demand in the mid-range footwear segment. The company is implementing a significant internal restructuring initiative, focusing on overhauling its distribution strategy. This move aims to improve operational agility, enhance market penetration, and quicken response to consumer preferences. The restructuring is part of Relaxo's efforts to strengthen business fundamentals and navigate current market challenges.
09May 25
Relaxo Footwears Q4 Results: Revenue and Profit Decline Amid Challenging Market Conditions; Recommends Dividend of 3 Rupees per Share
Relaxo Footwears reported a 6.96% year-over-year decline in Q4 FY2024 revenue to ₹695.00 crore. Net profit fell 8.47% to ₹56.20 crore. Despite challenges, the company maintained its EBITDA margin at 16.12%. A dividend of 3 rupees per equity share has been recommended. Sequential improvement was seen from Q3, with revenue up 3.16% and net profit increasing 70.30%.