Relaxo Footwears Ltd's Q3FY19 standalone net profit declines 6.7% yoy to Rs36cr : Misses Estimates

The company’s standalone revenue stood at Rs551cr, up 20.61% yoy and 1.5% qoq.

Feb 03, 2019 03:02 IST India Infoline Research Team

Relaxo Footwears Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 551.27 20.6
EBITDA 72.67 1.1
EBITDA Margin (%) 13.2 [254]
Net Profit (adjusted) 35.62 [6.7]
***EBITDA margin change is bps

Relaxo Footwear Ltd’s revenue grew by 20.6% yoy and 1.5% qoq to Rs551cr. EBITDA came in at Rs73cr, up 1.1% yoy and down 1.2% qoq. EBITDA margin contracted by 254bps yoy and 36bps qoq to 13.2%. Company’s adjusted Net profit stood at Rs36cr, down 6.7% yoy and 9.7% qoq. Net profit came below estimate of Rs40cr.

• The revenue growth is on account of good volume growth during the quarter.
• Cost of goods sold stood at 47.2% of sales vs. 43.2% yoy, impacting the EBITDA margins.
• Profitability is lower on account of higher raw material cost stemming from USD peak in Q3FY19 and an optically higher Q3FY18 on account of GST input credit on transitional stocks.
• Employee benefit expenses stood at 11.8% of sales vs. 12.7% yoy.
• Other expenses stood at 27.9% of revenue vs. 28.3% yoy.
• Tax rate for the quarter stood at 37.4% vs. 34% yoy.

Technical View:

Relaxo Footwears Ltd ended at Rs. 763, up by 28.95 points or 3.94% from its previous closing of Rs. 734.05 on the BSE.
The scrip opened at Rs. 729.05 and touched a high and low of Rs. 763.45 and Rs. 720 respectively. A total of 11,621 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.

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