Relaxo Footwears (RELAXO) Q4 98/99 earnings summary

Executive summary

• FY1998-99 total income rose to ₹11,070.77 lakh from ₹10,097.00 lakh; profit after tax increased to ₹656.37 lakh from ₹571.40 lakh.

• Directors recommended a dividend of ₹3 per equity share, equivalent to a 30% dividend rate.

Financial highlights

• Sales were ₹11,020.21 lakh versus ₹10,051.23 lakh; total expenditure was ₹10,142.01 lakh versus ₹9,288.91 lakh.

• Profit before depreciation was ₹928.76 lakh versus ₹808.09 lakh; depreciation was ₹67.39 lakh versus ₹56.69 lakh.

• Profit before tax increased to ₹861.37 lakh from ₹751.40 lakh; tax provision was ₹205.00 lakh versus ₹180.00 lakh.

• Profit after tax was ₹656.37 lakh versus ₹571.40 lakh; ₹500 lakh was transferred to general reserve, with ₹198.98 lakh carried forward.

Outlook and guidance

• Bahadurgarh expansion was at an advanced stage; trial runs were planned for the first week of October 1999, with capacity expected to double.

• Expansion was expected to contribute partially in FY1999-2000 and fully in FY2000-01.

• ERP implementation to address Y2K was expected to finish before end-1999; estimated software and hardware cost was ₹25 lakh, with no material profitability impact expected.