The shares of the leading footwear company gained up to 2 percent after the company’s net profit and revenue increased by 56 percent and 5 percent QoQ respectively in the fourth quarter.
With a market capitalization of Rs 21,162.27 crore, the shares of Relaxo Footwears Ltd were trading at Rs 850.10 per share, increasing around 0.60 percent as compared to the previous closing price of Rs 843.45 apiece.
Looking into the company’s performance, Relaxo Footwears Ltd’s revenue increased by 5 percent on a quarter-on-quarter basis from Rs. 713 crore in Q3FY24 to Rs. 747 crore in Q4FY24. Further, revenue decreased by 2 percent year on year, from Rs. 765 crore in Q4FY23 to Rs. 747 crore in Q4FY24.
Relaxo Footwears Ltd’s net profit increased by 56 percent on a quarter-on-quarter basis, from Rs. 39 crore in Q3FY24 to Rs. 61 crore in Q4FY24. Further, net profit decreased by 3 percent year on year from Rs. 63 crore in Q4FY23 to Rs. 61 crore in Q4FY24.
The company’s profitability measures show a decline in return on equity (RoE) from 13.21 percent in FY 21-22 to 8.32 percent in FY 22-23, while, during the same period return on capital employed (RoCE) decreased from 16.96 percent to 11.32 percent. In contrast, the net profit margin (NPM) was 5.55 percent in fiscal year 22-23.
In the company’s recent shareholding pattern, promoters own 71.27 percent while Retail shareholders own a 16.07 percent stake in the company and domestic Institutional Investors own a 9.33 percent stake.
Relaxo Footwears Limited is India’s largest footwear manufacturer, specializing in non-leather items such as rubber/EVA slippers, canvas shoes, sports shoes, sandals, school shoes, and other footwear. It also leads in the ‘value’ area of footwear. Its portfolio includes notable brands such as Relaxo, Sparx, Flite, and Bahamas.
Written by:- Abhishek Singh
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