Relaxo Footwears (RELAXO) Q4 05/06 earnings summary

Executive summary

• FY 2005-06 PAT was ₹325.85 lakh, down from ₹372.31 lakh; EPS was ₹2.72 versus ₹3.10.

• A 15% equity dividend was recommended, equivalent to ₹0.75 per share.

Financial highlights

• Sales were ₹20,085.85 lakh versus ₹21,547.21 lakh; total P&L income was ₹19,664.18 lakh versus ₹22,232.69 lakh.

• Total expenditure was ₹18,473.33 lakh versus ₹21,023.07 lakh; profit before depreciation was ₹1,190.85 lakh versus ₹1,209.62 lakh.

• Depreciation rose to ₹733.32 lakh from ₹606.23 lakh; PBT was ₹457.53 lakh versus ₹603.39 lakh, and PAT was ₹325.85 lakh versus ₹372.31 lakh.

• Operating cash flow increased to ₹2,620.05 lakh from ₹228.83 lakh; investing outflow was ₹1,352.19 lakh versus ₹2,646.80 lakh.

Outlook and guidance

• R&D plans focus on continuous product and process development and further work toward footwear-industry excellence.

• Product initiatives included low-shrinkage and lightweight footwear; reported benefits included better market acceptance, quality and production efficiency.