Relaxo Footwears (RELAXO) Q4 01/02 earnings summary

Executive summary

• FY 2001-02 turnover rose 7.18% to Rs 15,015.10 lacs; profit after tax fell 40.71% to Rs 406.60 lacs.

• Lower profit reflected higher depreciation, deferred tax, advertising and finance charges, and provision for doubtful debts.

• Operating profit before interest, depreciation and tax was Rs 1,022.86 lacs, 6.75% of revenue versus 8.13% a year earlier.

Financial highlights

• Total income was Rs 15,157.41 lacs versus Rs 14,052.36 lacs; total expenditure rose to Rs 14,287.18 lacs from Rs 12,996.29 lacs.

• Profit before depreciation and tax was Rs 870.23 lacs versus Rs 1,056.06 lacs; profit before tax was Rs 626.28 lacs versus Rs 909.85 lacs.

• PAT was Rs 406.60 lacs versus Rs 685.83 lacs; basic and diluted EPS was Rs 3.39 versus Rs 9.35.

• Extraordinary insurance-claim loss was Rs 3.61 lacs versus Rs 49.02 lacs; reported turnover increased 7.18% YoY.

Outlook and guidance

• Management expected better results in future and cited lower bank interest rates, with the full benefit expected in the ensuing year.

• Priorities included asset utilisation, earnings maximisation, continued growth and internal efficiencies; no quantified forecast was stated.