Relaxo Footwears Limited — Investor Meet, 16-05-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Relaxo Footwears reported Q4 revenue at INR 695 Cr, down from INR 747 Cr YoY due to weaker mid-range rural Hawai sales. EBITDA was INR 112 Cr (16.1% margin) and PAT at INR 56 Cr (8.1%). FY’25 revenue declined 4% to INR 2,790 Cr; EBITDA margin steady at 13.7%, PAT margin at 6.1%. Net debt-free with INR 62 Cr capex.

Management is shifting from primary- to secondary-led distribution, facing initial resistance but expecting improvements by H2, supported by their Relaxo Parivaar app (~60,000 active retailers). E-commerce accounts for ~10% revenue, with growth in sneakers priced INR 1,200-2,500. Capacity utilization at 55% indicates growth potential.

They target ~100 bps margin improvement through cost efficiencies and premium products, planning INR 100 Cr capex next year for product development, retail expansion (+50 stores), and energy savings. Export opportunities in the UK are under evaluation.

Watch H2 for volume recovery aided by distribution changes, premiumization, and operational efficiency driving margin improvement.