Relaxo Footwears (RELAXO) Q4 24/25 earnings summary

Executive summary

• FY25 revenue was INR 2,914.06 crore, down 4.3% year-over-year, with Q4 FY25 revenue at INR 703.24 crore, mainly due to softer volumes in the mid-range and economy segments.

• Net profit for FY25 was INR 170.33 crore, a 15% decline year-over-year; Q4 FY25 PAT at INR 56.22 crore, down 8.4% from Q4 FY24.

• EBITDA margin for FY25 stood at 13.7%, slightly lower than FY24's 13.95%.

• The company remains net debt-free, with investments of INR 3.57 billion as of March 31, 2025, and capex of INR 114.90 crore.

• Audited financial results for FY25 were approved with an unmodified audit opinion from statutory auditors.

Financial highlights

• FY25 EBIT at INR 229.9 crore (8.2% margin), down from INR 269.3 crore (9.2%) in FY24.

• Gross margin for Q4 was 64.9%, down from 60.3% last year, impacted by inventory reduction and accounting effects.

• Cash generated from operations in FY25 was INR 406.01 crore, up from INR 235.12 crore in FY24.

• Basic EPS for FY25 was INR 6.84, down from INR 8.05 in FY24.

• Capacity utilization stands at 55%.

Outlook and guidance

• Management expects improvement in top-line and EBITDA margin in FY26, driven by operational efficiency and product mix.

• Margin improvement of at least 100 basis points is targeted, supported by cost efficiencies and premium product launches.

• ROCE expected to improve by 2-3% in coming years as EBIT and EBITDA rise.

• Board recommended a final dividend of INR 3.00 per share (300% of face value), totaling INR 74.68 crore for FY25, subject to shareholder approval.

• Indian footwear market expected to grow at a 10.1% CAGR through 2033, with the organised segment expanding faster than the overall industry.