Conference call with management and analysts on Q4FY20 and Full Year earnings performance. Listen to the full earnings transcript.
Key Highlights
FY20 performance
Revenue up by 5% to Rs. 2,410 crore YoY. Due to the impact of nationwide lockdown the revenue growth dropped to 5% overall from 12.89% till Dec 19
EBITDA up by 26% to Rs. 409 crore YoY. EBITDA margins increased by 282 basis YoY to 17.0%. EBITDA margins adjusted to IND AS 116, stand at 15.1%.
Profit after Tax was up by 29% to Rs. 226 crore YoY. PAT Margins increased by 174 basis YoY to 9.4% due to adoption of new tax regime and cost control initiatives in manufacturing.
We generated a cash of Rs. 319 from operations and spread Rs. 310 crore in capex and payments for borrowings. Exports have expanded to new territories and contributing to 4% of revenues.
We are a leading player in the ‘value’ segment with an array of strong brands. We have reopened our operations and stores post lockdowns. Overall footwear demand is subdued due to lockdown. Slipper demand - which accounts for two thirds of our revenues - has increased during the lockdown but restrictions in manufacturing has limited our ability to fulfil these demands.
A lot of areas are still under lockdowns, and markets where they are open are open in a limited way. In the open areas, our business is picking up. Until opening happens in western and southern markets, demand will be limited. 50% of our markets are currently functional. While demand for school shoes are now low because schools are closed, this is an insignificant percentage of our revenues.
Sales driven by multi-brand outlets: current inventory in the channel will be in the range of 60 days. We expect things to be clearer by the next quarter.
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