Relaxo Footwears announced Q3FY23 results: Q3FY23: Revenue at Rs 681 crore in Q3FY23 as against a revenue of Rs 744 crore in Q3FY22, this was impacted by the subdued demand in mass segment articles and the higher volume/value base in the corresponding quarter in FY22 due to a change in GST rate with effect from January 1, 2022. EBITDA is at Rs 72 crore in Q3FY23 as compared to an EBITDA of Rs 122 crore in Q3FY22. EBITDA margin stood at 10.6% Q3FY23 as against 16.4% in the corresponding quarter due to aggressive price corrections in open footwear as well as the liquidation of high cost inventory in the pipeline in the current quarter. However, the margins witnessed an increase on a QoQ basis. PAT at Rs 30 crore in Q3FY23, as compared to a profit of Rs 70 crore in the corresponding quarter. PAT Margin stood at 4.4% as compared to 9.4%. 9MFY23: Revenue at Rs 2,018 crore in 9MFY23 as compared to Rs 1,955 crore in the corresponding period. EBITDA at Rs 218 crore in 9MFY23 as compared to Rs 305 crore in 9MFY22. EBITDA Margin stood at 10.8% in 9MFY23, as compared to 15.6% in the corresponding period. Profit after Tax at Rs 91 crore in 9MFY23 as compared to Rs 170 crore in 9MFY22. PAT Margin stood at 4.5% in 9MFY23 as compared to 8.7% in the corresponding period Commenting on the results and performance, Mr. Ramesh Kumar Dua, Managing Director said: "The company has reported a modest performance in Q3FY23. In spite of subdued demand due to the continuing inflationary pressures on the consumers, the Company showed marginal improvement in volumes on QoQ basis. The volume growth was primarily supported by price corrections undertaken. Market environment remains competitive & challenging. The Company made price corrections to counter the same. While we have started seeing the effect of the same on volumes, its full effect will come into play from Q4FY23 onwards. Once the major portion of the high-cost inventory gets cleared from our distribution channels coupled with the business showing signs of improvement and raw material costs stabilising, we expect improvements in margins while regaining the market share in the quarters to come. We also anticipate that our closed footwear segment will continue to show healthy growth momentum as wholesale distribution channels and online penetration improve." Result PDF
Conference Call with Relaxo Footwears Management and Analysts on Q2FY23 Performance and Outlook. Listen to the full earnings transcript.