Relaxo Footwear Q4 net profit soars 95.51 percent

Relaxo Footwear’s net profit increased 95.51 percent to Rs 42.68 crores for the fourth quarter ended March 2015 against Rs 21.83 crores during the previous quarter ended March 2014. Sales rose 18.13 percent to Rs 438.12 crores in the quarter against Rs 370.88 crores during the quarter ended March 2014.

For the full year, net profit rose 56.99 percent to Rs 103.05 crores in the year ended March 2015 as against Rs 65.64 crores during the previous year ended March 2014. Sales rose 22.14 percent to Rs 1,472.78 crores in the year against Rs 1205.83 crores during the previous year.

In Q4, the company posted growth in EBITDA at 55 percent with EBITDA margins expanding to 16 percent versus 13 percent on a year-on-year basis. As per estimates, the total size of footwear market in India is around Rs 34,000 crores and the organised players enjoy a share of 55 percent. Of this, Relaxo has a share of 10 percent. The company has six manufacturing plants at Bahadurgarh (Haryana) and one each at Bhiwadi (Rajasthan) and Haridwar. Though economically-priced Relaxo range is competing with the unorganised players in the country, its sports shoe brand Sparx is positioned against leading international brands.