Relaxo Footwears Limited — Important, 31-01-2025: Financial Result Updates

**Consolidated Financial Results Summary**

Revenue from operations for the quarter ended December 31, 2024, stands at ₹666.90 crore, showing a decline of approximately 6.4% compared to ₹712.71 crore in the same quarter last year. Total income for the quarter is ₹673.70 crore, down from ₹718.70 crore year-over-year, indicating potential market headwinds.

Net profit for the quarter is ₹33.01 crore, down from ₹38.57 crore a year earlier, reflecting a decline of around 14.6%. Earnings Per Share (EPS) for the quarter stands at ₹1.32 compared to ₹1.55 previously. This decrease can be attributed to higher operational costs, particularly in materials consumed, which have dropped to ₹227.08 crore from ₹263.22 crore, along with a rise in employee benefits expense.

Operational costs decreased by approximately 5.1%. However, the challenge remains in cost management amid declining revenues, necessitating strategic focus on inventory management and operational efficiencies.

The balance sheet remains stable, though cash flow may be impacted by current performance trends. ICRA has reaffirmed the Long-term rating at [ICRA] AA with a Stable outlook, which indicates a solid credit profile despite these challenges.

Investor Insight: Given the declining revenue and profit trends, a cautious approach is advisable. Monitoring cost efficiency in the coming quarters will be critical, leading to a hold sentiment for current investors while reassessing future opportunities and risks.