Relaxo Footwears (RELAXO) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 turnover rose 33.06% to ₹20,071.10 lacs; profit after tax increased 54.83% to ₹540.37 lacs, supported by higher sales volume and capacity utilization.

• A new light-weight footwear unit at Tikri Border began commercial production in February 2004.

Financial highlights

• Total income was ₹20,164.76 lacs vs ₹15,152.00 lacs; profit before tax was ₹738.37 lacs vs ₹478.23 lacs.

• Profit after tax was ₹540.37 lacs vs ₹349.01 lacs; basic and diluted EPS rose to ₹4.50 from ₹2.91.

• Excluding no separately identified exceptional item, expenditure totaled ₹19,090.84 lacs vs ₹14,349.25 lacs; depreciation was ₹335.55 lacs vs ₹324.52 lacs.

• Operating profit before interest, depreciation and tax was ₹1,149.95 lacs, 5.74% of revenue, vs ₹911.36 lacs and 6.01% in FY 2002-03.

Outlook and guidance

• Management expected growth opportunities to remain favorable and expressed confidence in better future results and improving profitability.

• Plans included expanding the product portfolio, leveraging brand value, cost reduction and efficiency improvements, and using spare capacity at Bahadurgarh and Bhiwadi.