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RELAXO FOOTWEARS 2017-18 Annual Report Analysis
Sat, 31 Mar

RELAXO FOOTWEARS has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

RELAXO FOOTWEARS Income Statement Analysis

  • Operating income during the year rose 20.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 30.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.6% in FY18 as against 14.3% in FY17.
  • Depreciation charges increased by 5.6% and finance costs decreased by 42.8% YoY, respectively.
  • Other income declined by 67.2% YoY.
  • Net profit for the year grew by 34.3% YoY.
  • Net profit margins during the year grew from 7.4% in FY17 to 8.3% in FY18.

RELAXO FOOTWEARS Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 16,103 19,335 20.1%
Other income Rs m 136 45 -67.2%
Total Revenues Rs m 16,239 19,380 19.3%
Gross profit Rs m 2,309 3,021 30.8%
Depreciation Rs m 515 543 5.6%
Interest Rs m 150 86 -42.8%
Profit before tax Rs m 1,780 2,436 36.8%
Tax Rs m 581 826 42.1%
Profit after tax Rs m 1,200 1,611 34.3%
Gross profit margin % 14.3 15.6
Effective tax rate % 32.6 33.9
Net profit margin % 7.4 8.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

RELAXO FOOTWEARS Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 4 billion as compared to Rs 4 billion in FY17, thereby witnessing an increase of 15.3%.
  • Long-term debt down at Rs 393 million as compared to Rs 709 million during FY17, a fall of 44.7%.
  • Current assets rose 26% and stood at Rs 6 billion, while fixed assets rose 10% and stood at Rs 7 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 12 billion as against Rs 11 billion during FY17, thereby witnessing a growth of 17%.

RELAXO FOOTWEARS Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 6,032 7,564 25.4
 
Current Liabilities Rs m 3,599 4,149 15.3
Long-term Debt Rs m 709 393 -44.7
Total Liabilities Rs m 10,703 12,498 16.8
 
Current assets Rs m 4,467 5,617 25.7
Fixed Assets Rs m 6,236 6,881 10.3
Total Assets Rs m 10,703 12,498 16.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



RELAXO FOOTWEARS Cash Flow Statement Analysis

  • RELAXO FOOTWEARS's cash flow from operating activities (CFO) during FY18 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -1 billion, an improvement of 21.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -463 million, an improvement of 48% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -4 million from the Rs 13 million net cash flows seen during FY17.

RELAXO FOOTWEARS Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 1,802 1,543 -14.4%
Cash Flow from Investing Activities Rs m -894 -1,084 -
Cash Flow from Financing Activities Rs m -895 -463 -
Net Cash Flow Rs m 13 -4 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for RELAXO FOOTWEARS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.4, an improvement from the EPS of Rs 10.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 651.4, stands at 100.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 21.4 times, while the price to sales ratio stands at 4.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 32.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 134.0 160.7
TTM Earnings per share Rs 10.0 13.4
Diluted earnings per share Rs 4.8 6.5
Price to Cash Flow x 72.2 32.7
TTM P/E ratio x 100.6 100.7
Price / Book Value ratio x 8.8 9.3
Market Cap Rs m 53,218 70,422
Dividends per share (Unadj.) Rs 1.0 1.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for RELAXO FOOTWEARS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY18, from 1.2x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 29.4x during FY18, from 12.8x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 21.3% during FY18, from 19.9% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 31.7% during FY18, from 28.6% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 13.6% during FY18, from 12.6% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.2 1.4
Debtors’ Days Days 3 3
Interest coverage x 12.8 29.4
Debt to equity ratio x 0.1 0.1
Return on assets % 12.6 13.6
Return on equity % 19.9 21.3
Return on capital employed % 28.6 31.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how RELAXO FOOTWEARS has performed over the last 5 years, please visit here.

RELAXO FOOTWEARS Share Price Performance

Over the last one year, RELAXO FOOTWEARS share price has moved up from Rs 496.9 to Rs 651.4, registering a gain of Rs 154.5 or around 31.1%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for RELAXO FOOTWEARS and quarterly results for RELAXO FOOTWEARS)

Annual Report FAQs

What is the current share price of RELAXO FOOTWEARS?

RELAXO FOOTWEARS currently trades at Rs 816.0 per share. You can check out the latest share price performance of RELAXO FOOTWEARS here...

What was the revenue of RELAXO FOOTWEARS in FY18? How does it compare to earlier years?

The revenues of RELAXO FOOTWEARS stood at Rs 19,380 m in FY18, which was up 19.3% compared to Rs 16,239 m reported in FY17.

RELAXO FOOTWEARS' revenue has grown from Rs 12,011 m in FY14 to Rs 19,380 m in FY18.

Over the past 5 years, the revenue of RELAXO FOOTWEARS has grown at a CAGR of 12.7%.

What was the net profit of RELAXO FOOTWEARS in FY18? How does it compare to earlier years?

The net profit of RELAXO FOOTWEARS stood at Rs 1,611 m in FY18, which was up 34.3% compared to Rs 1,200 m reported in FY17.

This compares to a net profit of Rs 1,203 m in FY16 and a net profit of Rs 1,031 m in FY15.

Over the past 5 years, RELAXO FOOTWEARS net profit has grown at a CAGR of 25.2%.

What does the cash flow statement of RELAXO FOOTWEARS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of RELAXO FOOTWEARS reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 1,543 m as compared to Rs 1,802 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs -1,084 m as compared to Rs -894 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -463 m as compared to Rs -895 m in FY17.

Here's the cash flow statement of RELAXO FOOTWEARS for the past 5 years.

(Rs m)FY14FY15FY16FY17FY18
From Operations1,2491,0751,5941,8021,543
From Investments-697-1,298-1,303-894-1,084
From Financial Activity-513211-313-895-463
Net Cashflow39-12-2113-4

What does the Key Ratio analysis of RELAXO FOOTWEARS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of RELAXO FOOTWEARS reveals:

  • Operating profit margins witnessed a fall and down at 15.6% in FY18 as against 14.3% in FY17.
  • Net profit margins grew from 7.4% in FY17 to 8.3% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.1 as compared to 0.1 in FY17.

Here's the ratio/financial analysis of RELAXO FOOTWEARS for the past 5 years.

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)12.313.714.414.315.6
Net Profit Margin (%)5.57.17.17.48.3
Debt to Equity Ratio (x)0.40.40.20.10.1

Read: Latest Annual Report Analysis of RELAXO FOOTWEARS

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