RELAXO FOOTWEARS 2018-19 Annual Report Analysis

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RELAXO FOOTWEARS 2018-19 Annual Report Analysis
Fri, 18 Oct

RELAXO FOOTWEARS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

RELAXO FOOTWEARS Income Statement Analysis

  • Operating income during the year rose 17.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 7.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.1% in FY19 as against 15.4% in FY18.
  • Depreciation charges increased by 14.9% and finance costs decreased by 19.7% YoY, respectively.
  • Other income grew by 191.0% YoY.
  • Net profit for the year grew by 8.9% YoY.
  • Net profit margins during the year declined from 8.2% in FY18 to 7.6% in FY19.

RELAXO FOOTWEARS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 19,569 22,921 17.1%
Other income Rs m 45 130 191.0%
Total Revenues Rs m 19,614 23,051 17.5%
Gross profit Rs m 3,021 3,243 7.4%
Depreciation Rs m 543 624 14.9%
Interest Rs m 86 69 -19.7%
Profit before tax Rs m 2,436 2,680 10.0%
Tax Rs m 826 925 12.1%
Profit after tax Rs m 1,611 1,754 8.9%
Gross profit margin % 15.4 14.1
Effective tax rate % 33.9 34.5
Net profit margin % 8.2 7.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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RELAXO FOOTWEARS Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 5 billion as compared to Rs 4 billion in FY18, thereby witnessing an increase of 9.9%.
  • Current assets rose 28% and stood at Rs 7 billion, while fixed assets rose 30% and stood at Rs 9 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 16 billion as against Rs 12 billion during FY18, thereby witnessing a growth of 28%.

RELAXO FOOTWEARS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 7,612 11,051 45.2
 
Current Liabilities Rs m 4,149 4,560 9.9
Long-term Debt Rs m 393 0 -100.0
Total Liabilities Rs m 12,498 16,046 28.4
 
Current assets Rs m 5,617 7,201 28.2
Fixed Assets Rs m 6,624 8,595 29.8
Total Assets Rs m 12,498 16,046 28.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



RELAXO FOOTWEARS Cash Flow Statement Analysis

  • RELAXO FOOTWEARS's cash flow from operating activities (CFO) during FY19 stood at Rs 1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -569 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -682 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -12 million from the Rs -4 million net cash flows seen during FY18.

RELAXO FOOTWEARS Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 1,543 1,235 -20.0%
Cash Flow from Investing Activities Rs m -1,084 -569 -
Cash Flow from Financing Activities Rs m -463 -682 -
Net Cash Flow Rs m -4 -12 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for RELAXO FOOTWEARS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.1, an improvement from the EPS of Rs 13.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 516.0, stands at 34.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 4.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 26.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 162.6 184.8
TTM Earnings per share Rs 13.4 14.1
Diluted earnings per share Rs 13.4 14.6
Price to Cash Flow x 28.8 26.0
TTM P/E ratio x 34.6 34.6
Price / Book Value ratio x 9.3 8.5
Market Cap Rs m 62,101 61,940
Dividends per share (Unadj.) Rs 1.5 1.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for RELAXO FOOTWEARS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.6x during FY19, from 1.4x during FY18. 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 39.8x during FY19, from 29.4x during FY18. 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 declined and down at 15.9% during FY19, from 21.2% during FY19. 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 declined and down at 24.9% during FY19, from 31.5% during FY18. 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 declined and down at 11.4% during FY19, from 13.6% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.4 1.6
Debtors’ Days Days 32 31
Interest coverage x 29.4 39.8
Debt to equity ratio x 0.1 0.0
Return on assets % 13.6 11.4
Return on equity % 21.2 15.9
Return on capital employed % 31.5 24.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 357.7 to Rs 516.0, registering a gain of Rs 158.3 or around 44.3%.

Overall, the S&P BSE SENSEX is up 12.8% over the year.

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

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Feb 1, 2021 | Updated on Feb 1, 2021

For the quarter ended December 2020, RELAXO FOOTWEARS has posted a net profit of Rs 901 m (up 66.3% YoY). Sales on the other hand came in at Rs 7 bn (up 12.0% YoY). Read on for a complete analysis of RELAXO FOOTWEARS's quarterly results.

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