New Delhi, January 31, 2025 – Relaxo Footwears Ltd. (BSE: 530517, NSE: RELAXO) announced its unaudited financial results for the quarter and nine months ended December 31, 2024. The company reported a decline in revenue and net profit amid industry-wide demand pressures but remains optimistic about long-term growth.
Key Financial Highlights (₹ in Crore)
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 | FY24 (Audited) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 666.90 | 679.37 | 712.71 | 2094.46 | 2166.85 | 2914.06 |
| Total Income | 673.70 | 686.01 | 718.70 | 2113.33 | 2190.65 | 2942.92 |
| Total Expenses | 629.09 | 636.44 | 667.87 | 1958.82 | 2003.67 | 2673.65 |
| Profit Before Tax (PBT) | 44.61 | 49.57 | 50.83 | 154.51 | 186.98 | 269.27 |
| Profit After Tax (PAT) | 33.01 | 36.73 | 38.57 | 114.11 | 139.08 | 200.47 |
| Earnings Per Share (₹) | 1.32 | 1.48 | 1.55 | 4.58 | 5.59 | 8.05 |
Quarterly Performance Overview
- Revenue Decline: The company posted ₹666.90 crore in revenue, reflecting a 6.43% YoY decrease due to lower sales volumes.
- Net Profit Decline: PAT for Q3 FY25 was ₹33.01 crore, down 14.4% YoY, impacted by lower demand and cost pressures.
- EBITDA Margin: EBITDA stood at ₹83.39 crore with a 12.50% margin, slightly improving from Q3 FY24’s 12.23%.
- PBT Margin: Declined to 6.69% from 7.13% YoY, reflecting higher operational costs and inflationary pressures.
Operational Highlights
- Units Sold: The company sold 4.0 crore pairs in Q3 FY25, down from 4.7 crore pairs in Q3 FY24.
- Average Realization Per Pair: Increased to ₹166, up from ₹151 in Q3 FY24, indicating better pricing strategy.
- Distribution Network: Relaxo continues to strengthen its retail footprint with 410 exclusive brand outlets, 650 distributors, and a presence in 34 countries.
Segment-Wise Revenue Breakdown
- Sparx continues to dominate brand-wise revenue share with 38% contribution.
- Relaxo/Bahamas accounted for 25%, while Flite contributed 37%.
- General Trade remains the primary revenue driver at 76%, with e-commerce and exports making up the rest.
Strategic & Industry Insights
- Industry Trends: India’s footwear market is projected to grow at a CAGR of 8.2%, driven by rising disposable income, a shift toward branded footwear, and increasing organized retail penetration.
- Manufacturing Capabilities: Relaxo operates nine manufacturing facilities, producing ~10.5 lakh pairs daily, ensuring cost efficiency and quality control.
- Sustainability Initiatives: The company is actively involved in water conservation, healthcare, and education projects, reinforcing its ESG commitments.
Credit Rating & Outlook
ICRA reaffirmed [ICRA] AA (Stable) for long-term debt and [ICRA] A1+ for short-term borrowings, highlighting financial stability.Management Commentary
Ramesh Kumar Dua, Chairman & Managing Director, stated: "Despite a challenging demand environment, our strategic focus on efficiency, premiumization, and distribution expansion will position us for sustainable growth. We remain committed to driving profitability while delivering high-quality products to consumers."Conclusion
Relaxo Footwears Ltd. continues to face demand challenges, but its strong brand presence, operational efficiency, and industry tailwinds position it well for long-term growth. The company remains focused on enhancing retail reach, innovation, and cost management to sustain profitability in the evolving market landscape.
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