Share the post "Relaxo Footwears : Q1 2024 Financial Quarterly Report : YoY Sales Up 1.27 %, QoQ Up 0.13 %"
Highlights
- The presented financial data is Standalone to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 1.27 % in the past year, substantial increase in net sales/revenue by 0.13 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -25.31 %, Marginal increase in other income during this quarter, up by 7.31%.
- Profit over the Year and quarter: Challenges in sustaining profitability for Relaxo Footwears Ltd.. Profit dropped by -21.22 % Year to Year, Relaxo Footwears Ltd.’s profitability dropped by -27.72 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -21.24 % Year to Year. EPS decreased by -27.64 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 738.82 Cr | Rs. 747.21 Cr | Rs. 748.19 Cr | + 0.13 % | + 1.27 % |
| Expenses | Rs. 631.27 Cr | Rs. 626.86 Cr | Rs. 649.29 Cr | + 3.58 % | + 2.85 % |
| Operating Profit | Rs. 107.55 Cr | Rs. 120.35 Cr | Rs. 98.9 Cr | -17.82 % | -8.04 % |
| OPM % | 14.56 % | 16.11 % | 13.22 % | -2.89 % | -1.34 % |
| Other Income | Rs. 7.27 Cr | Rs. 5.06 Cr | Rs. 5.43 Cr | + 7.31 % | -25.31 % |
| Interest | Rs. 4.46 Cr | Rs. 4.66 Cr | Rs. 4.89 Cr | + 4.94 % | + 9.64 % |
| Depreciation | Rs. 34.59 Cr | Rs. 38.46 Cr | Rs. 39.11 Cr | + 1.69 % | + 13.07 % |
| Profit before tax | Rs. 75.77 Cr | Rs. 82.29 Cr | Rs. 60.33 Cr | -26.69 % | -20.38 % |
| Tax % | 25.67 % | 25.4 % | 26.45 % | + 1.05 % | + 0.78 % |
| Net Profit | Rs. 56.32 Cr | Rs. 61.39 Cr | Rs. 44.37 Cr | -27.72 % | -21.22 % |
| EPS in Rs | Rs. 2.26 | Rs. 2.46 | Rs. 1.78 | -27.64 % | -21.24 % |
Today, we’re looking at Relaxo Footwears Ltd.’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 1.27 %. However, it did see a marginal increase of 0.13 % from the previous quarter. Expenses ticked up slightly by 3.58 % quarter-on-quarter, aligning with the annual rise of 2.85 %. Operating profit, while down -8.04 % compared to last year, faced a quarter-on-quarter dip of -17.82 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -1.34 %, but a shrinkage of -2.89 % sequentially. Other income rose by 7.31 % compared to the last quarter, despite an annual decline of -25.31 %. Interest expenses surged remarkably by 4.94 % from the previous quarter, yet the year-over-year increase remains at a moderate 9.64 %. Depreciation costs climbed by 1.69 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 13.07 %. Profit before tax declined annually by -20.38 % but saw a reduction from the preceding quarter by -26.69 %.
Tax expenses as a percentage of profits increased slightly by 0.78 % compared to last year, with a more notable quarter-on-quarter increase of 1.05 %. Net profit fell by -21.22 % year-on-year but witnessed a -27.72 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -21.24 % but a quarterly fall of -27.64 %. In summary, Relaxo Footwears Ltd.’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 738.82 Cr | Rs. 747.21 Cr | Rs. 748.19 Cr | + 0.13 % | + 1.27 % |
| Expenses | Rs. 631.27 Cr | Rs. 626.86 Cr | Rs. 649.29 Cr | + 3.58 % | + 2.85 % |
| Operating Profit | Rs. 107.55 Cr | Rs. 120.35 Cr | Rs. 98.9 Cr | -17.82 % | -8.04 % |
| Net Profit | Rs. 56.32 Cr | Rs. 61.39 Cr | Rs. 44.37 Cr | -27.72 % | -21.22 % |
| EPS in Rs | Rs. 2.26 | Rs. 2.46 | Rs. 1.78 | -27.64 % | -21.24 % |
In reviewing Relaxo Footwears Ltd.’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 1.27 % year-on-year growth, however, there was a minor increase of 0.13 % from the previous quarter. Expenses rose by 2.85 % compared to the previous year, with a 3.58 % increase quarter-on-quarter. Operating Profit dropped by -8.04 % annually, and saw a -17.82 % decrease from the last quarter.
Net Profit showed yearly decrease of -21.22 %, and experienced a -27.72 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -21.24 % annually, however dipped by -27.64 % compared to the last quarter. In essence, while Relaxo Footwears Ltd. faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
