Footwear company Relaxo Footwears announced H1FY25 & Q2FY25 results Q2FY25 Financial Highlights: Revenue at Rs 679 crore in Q2FY25 as compared to Rs 715 crore in Q2FY24. This is mainly due to weak market demand during the quarter. EBITDA at Rs 88 crore in Q2FY25 as against Rs 92 crore in corresponding quarter of previous year. The company maintained its EBITDA margin at 12.9% during the quarter as compared to 12.8% in Q2FY24, despite subdued demand. Profit after Tax at Rs 37 crore in Q2FY25 as compared to Rs 44 crore in Q2FY24. H1FY25 Financial Highlights: Revenue at Rs 1,428 crore in H1FY25 as compared to Rs 1,454 crore in H1FY24. EBITDA at Rs 187 crore in H1FY25 as against Rs 199 crore in H1FY24. EBITDA margin stood at 13.1% in H1FY25 as compared to 13.7% in H1FY24. Profit after Tax at Rs 81 crore in H1FY25 as compared to Rs 101 crore in H1FY24. PAT margin stood at 5.7% in H1FY25 as compared to 6.9% in H1FY24. Ramesh Kumar Dua, Chairman and Managing Director said: “The company reported a decline in revenues during the quarter as the overall demand remained subdued. During the quarter, the industry witnessed an increase in lower priced unorganized competition, which led to downtrading by consumers in a high inflation environment. Margin pressure was also high from organized trade channels. The company took a call to not dilute pricing and margins to unsustainable levels due to which we were able to maintain our operating margins during the quarter. However, higher depreciation in the quarter has impacted the net profit of the company. The company has been sanctioned a grant of Rs 10.00 crore, which is 50% of total expenses i.e., Rs 20.00 crore for Design Studio, under Indian Footwear and Leather Development Programme (IFLDP) that will boost our focus on best-in-class technological upgradation and advanced level of designs. The company is in the process of adding new distributors to our network, to ensure Relaxo’s presence in each district of the country. To improve our reach and market penetration, we launched a retailer connect initiative through ‘Relaxo Parivaar’ mobile application. This has shown an encouraging response with reach of over 70,000 retail outlets and has been driving consistent month on month improvement in secondary sales. To drive premiumization, we have collaborated with global brands viz. ‘Disney’ and ‘Marvel’, launching a new collection featuring ‘Disney’ and ‘Marvel’ themes. Further, in line with our continued focus on cost efficiencies, we are working on optimizing our backend operations, which would enable the company to deliver a sustainable performance in future." Result PDF