RELAXO FOOTWEARS 2023-24 Annual Report Analysis

Wed, 7 Aug

RELAXO FOOTWEARS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

RELAXO FOOTWEARS Income Statement Analysis

• Operating income during the year rose 4.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.0% in FY24 as against 12.2% in FY23.
• Depreciation charges increased by 17.9% and finance costs decreased by 2.9% YoY, respectively.
• Other income grew by 55.4% YoY.
• Net profit for the year grew by 29.8% YoY.
• Net profit margins during the year grew from 5.6% in FY23 to 6.9% in FY24.

RELAXO FOOTWEARS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	27,828	29,141	4.7%
Other income	Rs m	186	289	55.4%
Total Revenues	Rs m	28,013	29,429	5.1%
Gross profit	Rs m	3,382	4,089	20.9%
Depreciation	Rs m	1,251	1,475	17.9%
Interest	Rs m	217	210	-2.9%
Profit before tax	Rs m	2,100	2,693	28.2%
Tax	Rs m	555	688	23.9%
Profit after tax	Rs m	1,545	2,005	29.8%
Gross profit margin	%	12.2	14.0
Effective tax rate	%	26.4	25.6
Net profit margin	%	5.6	6.9

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RELAXO FOOTWEARS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 10.4%.
• Current assets rose 4% and stood at Rs 12 billion, while fixed assets rose 13% and stood at Rs 15 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 27 billion as against Rs 25 billion during FY23, thereby witnessing a growth of 9%.

RELAXO FOOTWEARS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	18,546	19,949	7.6
Current Liabilities	Rs m	4,707	5,195	10.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	24,948	27,139	8.8
Current assets	Rs m	11,936	12,464	4.4
Fixed Assets	Rs m	13,012	14,675	12.8
Total Assets	Rs m	24,948	27,139	8.8

RELAXO FOOTWEARS Cash Flow Statement Analysis

• RELAXO FOOTWEARS's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -986 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 23% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 301 million from the Rs 32 million net cash flows seen during FY23.

RELAXO FOOTWEARS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	4,001	2,351	-41.2%
Cash Flow from Investing Activities	Rs m	-2,585	-986	-
Cash Flow from Financing Activities	Rs m	-1,385	-1,064	-
Net Cash Flow	Rs m	32	301	848.9%

Current Valuations for RELAXO FOOTWEARS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.1, an improvement from the EPS of Rs 6.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 833.6, stands at 110.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.4 times, while the price to sales ratio stands at 7.1 times.
• The company's price to cash flow (P/CF) ratio stood at 62.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	111.8	117.1
TTM Earnings per share	Rs	6.2	8.1
Diluted earnings per share	Rs	6.2	8.1
Price to Cash Flow	x	75.6	62.1
TTM P/E ratio	x	136.8	110.1
Price / Book Value ratio	x	13.8	10.8
Market Cap	Rs m	255,100	216,141
Dividends per share (Unadj.)	Rs	2.5	3.0

Ratio Analysis for RELAXO FOOTWEARS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY24, from 2.5x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 13.8x during FY24, from 10.7x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 10.0% during FY24, from 8.3% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 14.6% during FY24, from 12.5% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 8.2% during FY24, from 7.1% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.5	2.4
Debtors’ Days	Days	4	4
Interest coverage	x	10.7	13.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.1	8.2
Return on equity	%	8.3	10.0
Return on capital employed	%	12.5	14.6

To see how RELAXO FOOTWEARS has performed over the last 5 years, please visit here.

RELAXO FOOTWEARS Share Price Performance

Over the last one year, RELAXO FOOTWEARS share price has moved down from Rs 923.4 to Rs 833.6, registering a loss of Rs 89.9 or around 9.7%.

Overall, the S&P BSE SENSEX is up 20.2% over the year.

(To know more, check out historical annual results for RELAXO FOOTWEARS and quarterly results for RELAXO FOOTWEARS)