Relaxo Footwears (RELAXO) Q4 02/03 earnings summary

Executive summary

• FY2002-03 total income was ₹15,152.00 lacs, nearly flat YoY; PAT fell 14.16% to ₹349.01 lacs.

• Turnover rose 0.46% to ₹15,084.25 lacs; lower profit reflected higher Bhiwadi depreciation and no dividend income.

Financial highlights

• Total expenditure reached ₹14,349.25 lacs vs ₹14,287.18 lacs; profit before depreciation and tax was ₹802.75 lacs vs ₹870.23 lacs.

• PBT was ₹478.23 lacs vs ₹626.28 lacs; PAT was ₹349.01 lacs vs ₹406.60 lacs.

• Depreciation rose to ₹324.52 lacs from ₹243.95 lacs; finance charges declined to ₹363.83 lacs from ₹391.89 lacs.

• Operating cash flow was ₹1,127.01 lacs; investing cash outflow was ₹164.98 lacs and financing cash outflow was ₹802.69 lacs.

Outlook and guidance

• Cost awareness, rationalisation and efficiency initiatives were aimed at offsetting higher natural rubber prices; lower rubber prices were expected to support profitability.

• Management expected growth opportunities as the economy recovered and aimed to improve results by utilising spare capacity at Bahadurgarh and Bhiwadi.