Relaxo Footwears Q4FY16 standalone net profit rises 23% yoy to Rs.32.82 crore : Estimates Mixed

India Infoline News Service | Mumbai | May 14, 2016 19:26 IST

The company’s standalone revenue stood at Rs. 485.40 crore, up 10.19% yoy and 25.2% qoq.

Relaxo Footwears
Relaxo Footwears, manufacturer of Footwear Products, reported standalone net profit of Rs.32.82 crore for the quarter ended March 31, 2016, registering decline of 23.1% yoy, but growth of 34.4% qoq. The company’s revenue stood at Rs. 485.40 crore, up 10.19% yoy and 25.2% qoq.

Its standalone core operating profit of Rs. 66.86 crore for the quarter, declined by 6.07% yoy but clocked growth of 23.43% qoq. Operating profit margin for the current quarter at 13.77% contracted by 239 bps yoy and 20 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 120.28 crore, growing by 16.72% yoy. Its standalone revenue for the period stood at Rs. 1,713.02 crore, registering growth of 15.68% yoy.

Relaxo Footwears core operating profit stood at Rs. 241.07 crore, recording growth of 20.15% yoy. Operating margin for the current period at 14.01% expanded by 46 bps yoy.

Relaxo Footwear - Q4FY16: Higher other expenses eats EBITDA margin

Relaxo Footwear’s net sales grew by 10.2% to Rs. 485 crore, 1.6%/2.3% lower than IIFL estimate of Rs. 493 crore. Gross margin improved by just 73bps to 58%, indicating an uptick in crude driven raw-material cost. However, during the quarter, the other expenses cost increased by 236bps. Hence, EBITDA margin declined by 238bps to 13.8%, 79bps lower than IIFL estimate of 14.6%. EBITDA declined 6.1% to Rs67cr, 6.9% lower than IIFL estimate of Rs. 72 crore. Depreciation/ Interest cost increased by 36%/8.2%, respectively. Hence, PBT declined by 13% to Rs. 49 crore. With a higher tax rate of 32.8% as against 30.7% in Q4FY15, PAT declined by 23.1% Rs33cr, 29.8%/24.2% lower than IIFL estimate of Rs. 47crore respectively.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 485.40 493.11 [1.56]
Standalone Net Profit 32.82 46.75 [29.80]

Bloomberg estimated the company’s standalone net profit at Rs. 43.30 crore.

Management Comments:Relaxo Footwears at its meeting held on May 14, 2016, inter alia, has recommended 60% dividend for the year ended March 31, 2016 subject to approval of the shareholders.

Stock Commentary:

Relaxo Footwears Ltd is currently trading at Rs. 480.3, down by 32.05 points or 6.26% from its previous closing of Rs. 512.35 on the BSE.

The scrip opened at Rs. 500 and has touched a high and low of Rs. 500 and Rs. 460 respectively. So far 97171(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 6150.23 crore.

The BSE group 'B' stock of face value Rs. 1 has touched a 52 week high of Rs. 614.55 on 27-Jul-2015 and a 52 week low of Rs. 360 on 01-Apr-2016. Last one week high and low of the scrip stood at Rs. 526 and Rs. 495 respectively.

The promoters holding in the company stood at 74.98 % while Institutions and Non-Institutions held 4.13 % and 20.89 % respectively.

The stock is currently trading below its 200 DMA.

***Note: This is a NSE Chart



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