RELAXO FOOTWEARS LTD.-$ - 530517 - Compliances-Certificate under Reg. 74 (5) of SEBI (DP) Regulations, 2018
Certificate in accordance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended on June 30, 2021 Relaxo Footwears Ltd - 530517 - Announcement under Regulation 30 (LODR)-Credit Rating
Credit Rating by ICRA Ltd Relaxo Footwears Ltd - 530517 - Closure of Trading Window
In terms of SEBI (Prohibition of Insider Trading) Regulations, 2015 and Policy for prevention of insider trading of the Company, 'Trading Window' for dealing in securities of the Company is closed from Thursday, 1st July, 2021 to Monday, 2nd August, 2021 (both days inclusive) for the purpose of tentative Board Meeting scheduled to be held on Saturday, 31st July, 2021. Relaxo Footwears Ltd - 530517 - Compliances-Reg.24(A)-Annual Secretarial Compliance
Submission of Annual secretarial compliance report for the financial year ended 31st March, 2021 RELAXO FOOTWEARS LTD.-$ - 530517 - Submission Of Disclosure On Related Party Transactions For The Period Ended On March 31, 2021, Pursuant To Regulation 23(9) Of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015
Submission of disclosure on Related Party Transactions for the period ended on March 31, 2021, pursuant to Regulation 23(9) of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015
Relaxo Footwears puts on its running shoes
Relaxo Footwears gained 30% over the past one month and touched its new 52-week high after the company declared its March 2021 quarter results last week. Nifty 50 has gained 3% over the same period. Buoyed by a strong performance in H2FY21, Relaxo ended FY21 with a two-fold increase in net profit and a four percentage point expansion in earnings before interest, taxes, depreciation and amortization (EBITDA) margin in the March 2021 quarter. Relaxo’s shares rose 9% after the company announced its Q4 results on May 20. Quick Takes: Relaxo passed on rise in raw material costs to consumers through price hikes of 7-8% on an average in FY21 Online accounted 8% of total revenues while exclusive brand outlets (EBOs) generated 7% of total revenues in FY21 Variation in crude prices and exchange rates impact margins as raw materials polyurethane (PU) and ethylene-vinyl acetate (EVA) are crude derivatives Unlike Bata India, school shoes constitute just 1% of overall revenues Relaxo has one of the largest distribution networks in the footwear industry comprising of more than 50,000 multi brand outlets (MBO), 650 distributors and 698 exclusive brand outlets (EBOs) March 2021 quarter ends on a strong footing Relaxo Footwears reported an impressive performance in Q4FY21 driven by lockdown relaxations across the country and strong rural demand in north and eastern India. The favorable base of the March 2020 quarter also aided in strong revenue growth of 38% YoY during the quarter. Revenues had declined 15% YoY in Q4 FY20 due to the nation-wide lockdown in March last year. Operating revenues were Rs 748 crore compared to Rs 540 crore a year ago. Earnings before interest, taxes, depreciation and amortization (EBITDA) came in at Rs 163 crore in March 2021 quarter (vs Rs 96 crore in March 2020 quarter). EBITDA margins reported at 21.78% expanded four percentage points YoY aided by strong revenue growth, product mix and savings in selling and administrative expenses. Net profit increased to Rs 102 crore, nearly doubling YoY. Ramesh Dua, Managing Director at Relaxo Footwears said that despite challenging times, the company withstood Covid disruption, demonstrating resilience. The management is however cautious about the recent rising trend of raw material prices. Relaxo’s raw material basket includes polyurethane (PU), natural rubber and ethylene-vinyl acetate (EVA). PU and EVA are crude derivatives. Crude prices have increased 46% over the past six months. Bata vs Relaxo – closed vs open footwear The pandemic is now 18 months old, forcing companies to innovate, adopt new marketing strategies and understand the new spectrum of essential and non-essential parts of routine life. Covid has changed how everyone lives their day to day. Consumers are buying more casual wear, shorts, pyjamas and t-shirts with muted demand for formal wear. In this altered landscape of work from home, even footwear choices have changed. Instead of trendy, fashionable footwear, comfort is the new norm. Slippers, crocs, slip-ons, sandals, flip-flops and various categories of open footwear are growth drivers in the present pandemic period. Relaxo has always been criticized for its low pricing power, and low brand image with no presence in the leather segment. But the company has outpaced Bata India in terms of market capitalization in FY21. It’s not just in market cap - Relaxo has scored on every significant parameter like revenue, net profit, operating profit, margins, outshining Bata India throughout FY21. As open footwear gained prominence post Covid, so did Relaxo’s varied range of non-leather products like Hawai slippers, Bahamas and Flite. Relaxo is true to its name: nearly 80% of its revenue and 90% of volumes come from more casual, open footwear. In FY21, 85% revenues were garnered from open footwear category and 15% from closed footwear. As the first two quarters of FY21 were impacted by Covid severity, closed footwear found its momentum from Q3 and Q4 with the advent of the festive and winter season. With the average selling price of Rs 135-150, the company caters to the lower income pyramid of society garnering revenues mainly from rural India. North India is its stronghold, accounting for about 50% revenues. Bata India, on the other hand, is moving in the slow lane and playing the waiting game, expecting growth to return by the end of June quarter FY22. The iconic footwear brand has a higher share of formal and closed footwear in its revenue mix. The company is highly dependent on its standalone stores stretching across metros and Tier I & II cities. Hush Puppies, Naturalizer, Power, Marie Claire, Weinbrenner, North Star, Bubblegummers are major Bata brands catering to upper- and middle-class income groups. As a result Bata had a tough FY21. Relaxo is ready to take Flite amid Covid-19 turbulence Instead of catering to crème de la crème, Relaxo caters to the value for money segment with mass appeal. Apart from its low priced products, the company performed well on the back of its strong manufacturing prowess and wide distribution network. Relaxo manufactures roughly 18 crore pairs annually compared to 5 crore pairs by Bata, and 14 crore pairs by another close peer Paragon. The company has a low presence in shopping malls and follows a multi brand outlet (MBO) distribution model compared to Bata’s EBO network. MBOs present in rural, sub-rural, suburban and urban regions gave the required fillip to capture market share not only from established players but also unorganized segment constituting 45% of the footwear industry. Ramesh Dua said that MBOs have been the saving grace for the company during the pandemic. He further added that the value for money product mix and strong distribution network of more than 50,000 MBOs led to volume growth of 7% in FY21, after a washout in H1FY21, compared to 2.7% volume fall in FY20. MBOs account for about 75-80% of Relaxo’s total revenues. According to the management, while demand in Q4FY21 was better than pre-Covid levels, the present scenario is subdued. The company has completely lost the month of May 2021 in sales and is expecting demand to recover from July onwards as states are expected to gradually unlock from June. Speaking on the company’s EBITDA margins, Dua said that margins have been strong in FY21, supported by savings in sales & promotion, traveling expenses, professional expenses, backend efficiencies and benign raw material costs. Relaxo has faced many volatile raw material cycles over the past few years and has been following the policy of being competitive rather than proactive in maintaining margins. Consequently, margins have expanded consistently since 2014 from 12% levels to 21% by the end of FY21. Dua said that in the present lockdown environment and with rising raw material costs, margin sustainability at 20% levels would be difficult in the near future. Relaxo also plans to increase its advertising and promotional expenditure to 8-9% of turnover in FY22 from 5-7% last year. The company is presently operating only three out of its eight manufacturing plants and 10-15% of its markets are open for business. As the second Covid wave wanes and lockdown restrictions are relaxed, would there be pent-up demand in FY22, especially after the open footwear demand upsurge in FY21? Dua is bullish on demand sustainability in FY22. The company has sufficient inventories and capacity available in case of high demand in FY22, he said. With limited product life and increasing per capita consumption of footwear in India, demand is expected to sustain - if vaccinations pick up and we forestall a third Covid19 wave in FY22. RELAXO FOOTWEARS LTD.-$ - 530517 - Announcement under Regulation 30 (LODR)-Earnings Call Transcript
Transcript of earning call on the Financial results of Q4 FY2021 held on 24th May, 2021 Earnings Call for Q4FY21 of Relaxo Footwears
Conference Call with Relaxo Footwears Management and Analysts on Q4FY21 Performance and Outlook. Listen to the full earnings transcript. Relaxo Footwears Ltd - 530517 - Announcement under Regulation 30 (LODR)-Investor Presentation
Investor Presentation on Audited Financial Results of the company for the quarter and year ended on March 31, 2021 Relaxo Footwears Ltd - 530517 - Announcement under Regulation 30 (LODR)-Newspaper Publication
Publication of Audited Financial Results for the Quarter & Year ended on 31st March,, 2021 in Newspaper.