Relaxo Footwears (RELAXO) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue declined 5% year-over-year to INR 679 crore, with H1 FY25 revenue at INR 1,428 crore, both reflecting weak market demand.

• PAT for Q2 FY25 was INR 36.73 crore, down from INR 44.19 crore in Q2 FY24; H1 FY25 PAT was INR 81.1 crore, down 19.3% year-over-year.

• EBITDA margin for Q2 FY25 was 12.9%, nearly flat year-over-year; H1 FY25 EBITDA margin was 13.1%.

• Unaudited financial results for the quarter and half year ended September 30, 2024, were reviewed and approved by the Board on November 8, 2024.

• Company remains net debt-free with positive cash flow from operations.

Financial highlights

• Q2 FY25 revenue: INR 679 crore (down 5% YoY); H1 FY25 revenue: INR 1,428 crore (down 1.8% YoY).

• Q2 FY25 PAT: INR 36.73 crore (vs INR 44.19 crore YoY); margin 5.4%.

• H1 FY25 PAT: INR 81.1 crore (vs INR 101 crore YoY); margin 5.7%.

• Q2 FY25 EBITDA: INR 88 crore; margin 12.9%.

• Earnings per share (basic and diluted) for H1 FY25 was INR 3.26, compared to INR 4.04 in H1 FY24.

Outlook and guidance

• Management expects demand to improve in Q3 due to the wedding season.

• Full-year volume growth expected to be flattish due to H1 decline.

• Sparx brand targeted for 8-10% growth; overall revenue growth expected to be positive but not quantified.

• Margin improvement initiatives underway, but FY25 margin guidance revised below earlier 15-16% target.

• Focus remains on manufacturing excellence, product innovation, and expanding distribution.