Relaxo Footwears Limited Q1 FY22 Result Analysis

Relaxo Footwears Limited, India’s largest footwear manufacturing company declared its Quarterly Results for Q1FY22 on Saturday 31st July 2021. Here is a brief analysis of the Q1FY22 result of the company.

Q1FY22 Result Analysis: Relaxo Stock Analysis

• The Revenue from Operations of the company has increased 36.7% YoY from Rs. 364 Cr. in Q1FY22 to Rs. 497 Cr. in Q1FY22. Quarter on Quarter, the revenue from operations of the company has fallen by 33.5% from Rs. 748 Cr. in Q4FY21.

• The strong revenue growth was due to the low base of Q1FY21 which was impacted due to complete nationwide lockdown till the first week of May.

• The EBITDA of the company has grown in double-digit by 16% YoY to Rs. 66 Cr. in Q1FY22 against Rs. 57 Cr in Q1FY21. The EBITDA of the company has fallen drastically by around 59% QoQ from Rs. 163 Cr. in Q4FY21.

• The EBITDA margin stood at 13.3% in Q1FY22 against 15.7% in Q1FY21 down by 240 bps YoY. Quarterly, the EBITDA margin of the company has decreased by a whopping 870 bps from 22% in Q4FY21.

• Fall in EBITDA Margin is mainly due to an increase in raw material prices and restoration of marketing and brand promotion expenses.

• The Profit Before Tax (PBT) of the company has increased by 24.5% YoY from Rs. 32 Cr. in Q1FY21 to Rs. 40 Cr. in Q1FY22. While the PBT of the company has fallen massively by 70.8% QoQ from Rs. 138 Cr. in Q4FY21.

• The Net Profit has also shown a similar trend to PBT and has grown by 27.8% YoY from Rs. 24 Cr. in Q1FY21 to Rs. 31 Cr. in Q1FY22. Sequentially, the same has gone down by 69.7% from Rs. 102 Cr. in Q4FY21.

• The Net Profit Margin of the company has also fallen heavily quarterly as well as on yearly basis. The Net Profit Margin of the company stood at 6.2% in Q1FY2.

Relaxo Footwears- Q1 FY22 Result 

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