Relaxo Footwears Limited — PPTs, 09-05-2025: Investor Presentation

1. Financial Highlights:

Relaxo Footwears reported FY25 revenue of ₹2,790 Cr, down 4.3% YoY, with EBITDA at ₹382 Cr and margins stable at 13.7%. PAT declined 15% to ₹170 Cr, margin slipping to 6.1%. Quarterly revenue was ₹695 Cr, down 7%, but EBITDA margin remained steady at 16.1%. Volumes dropped to 17.8 Cr pairs from 19.5 Cr, while average realization rose to ₹156 per pair, supporting gross profitability. Net debt increased to ₹292 Cr; net worth expanded to ₹2,098 Cr, reflecting a robust balance sheet. Operating cash flow remained strong at ₹464 Cr.

2. Strategic Initiatives & Growth Drivers:

The company focuses on lean manufacturing and cost optimization through dedicated lines and advanced methods like MOST. Product innovation and channel expansion remain priorities. Retail footprint covers 70,000+ outlets, 650 distributors, 418 exclusive stores, and exports to 36 countries. Capex moderated to ₹62 Cr (net of subsidy), indicating cautious investment amid macro uncertainties.

3. Business Developments:

No significant acquisitions or partnerships were announced. Focus continues on product and market diversification within core brands Hawai, Flite, and Sparx, with investments in manufacturing excellence and supply chain strengthening.

4. Market Position & Competitive Advantage:

Relaxo is India’s largest footwear maker with a strong brand mix and pan-India reach. Its integrated in-house manufacturing and multiple ISO certifications drive cost-efficiency and product quality. Scale, distribution breadth, and experienced leadership underpin market leadership and resilience.

5. Investor Implications:

Despite volume pressures, stable margins and improved realizations signal underlying strength. Strong distribution and manufacturing capabilities offer positive growth potential. Prudent capex and healthy cash flows limit financial risks. Execution on demand recovery and input cost control will be key factors to watch for sustained earnings momentum.