Relaxo Footwears (RELAXO) Q4 96/97 earnings summary

Executive summary

• FY1996-97 total income rose to Rs. 7,790.72 lakh from Rs. 5,431.23 lakh; profit after tax reached Rs. 549.78 lakh versus Rs. 351.52 lakh.

• Dividend recommended at Rs. 3 per share, up from Rs. 2; EPS increased to Rs. 18.32 from Rs. 11.72.

Financial highlights

• Sales were Rs. 7,781.28 lakh versus Rs. 5,411.59 lakh; total expenditure was Rs. 7,022.14 lakh versus Rs. 4,960.48 lakh.

• Profit before tax was Rs. 719.78 lakh versus Rs. 431.52 lakh; tax provision was Rs. 170 lakh versus Rs. 80 lakh.

• Profit before depreciation was Rs. 768.58 lakh versus Rs. 470.75 lakh; depreciation was Rs. 48.80 lakh versus Rs. 39.23 lakh.

• Net worth increased to Rs. 1,130.45 lakh from Rs. 893.55 lakh; book value per share rose to Rs. 37.67 from Rs. 29.78.

• Actual sales of Rs. 7,781.28 lakh exceeded the Rs. 5,947 lakh projection; actual PBT of Rs. 719.78 lakh was below the Rs. 724 lakh projection.

Outlook and guidance

• Future plans include establishing a full-fledged R&D division, building on product upgrades and quality-enhancement efforts.

• Directors proposed seeking shareholder approval for a share buyback, subject to statutory limits and approvals.