A thread on Relaxo Footwears Limited
#Relaxo #footwear #Company #StockMarketindia #StockMarket #stocks
#Relaxo #footwear #Company #StockMarketindia #StockMarket #stocks
1/ About the Company
Relaxo, located in New Delhi, is one of the largest players in the non-leather footwear market in India and manufactures Hawai slippers, EVA (ethylene vinyl acetate) and PU (polyurethane) based, slippers, sports shoes and sandals
Relaxo, located in New Delhi, is one of the largest players in the non-leather footwear market in India and manufactures Hawai slippers, EVA (ethylene vinyl acetate) and PU (polyurethane) based, slippers, sports shoes and sandals
2/ Operational Facilities
Relaxo has 8 manufacturing facilities across India
Capacity to produce 7.5 lakh pairs per day
Access to 50K+ retailers through 650 distributors
398 exclusive brand outlets as on 31st March 2021
Sold 19.1 Cr. units in FY2021 across 9 brand names
Relaxo has 8 manufacturing facilities across India
Capacity to produce 7.5 lakh pairs per day
Access to 50K+ retailers through 650 distributors
398 exclusive brand outlets as on 31st March 2021
Sold 19.1 Cr. units in FY2021 across 9 brand names
3A/ Financials
The pandemic caused stunted growth
Net sales saw a marginal decline of 2% in FY21
EBITDA grew 21.5% in FY21 to INR 495.5 Cr. due to fall in RM cost, better product mix & improved efficiency
Volume of sale continued to grow by 7%
PAT grew by 29% to INR 291.6Cr
The pandemic caused stunted growth
Net sales saw a marginal decline of 2% in FY21
EBITDA grew 21.5% in FY21 to INR 495.5 Cr. due to fall in RM cost, better product mix & improved efficiency
Volume of sale continued to grow by 7%
PAT grew by 29% to INR 291.6Cr
3B/ Financials
The EBITDA margin improved 451bps to 21.96% in FY21
PAT margin improved 297bps to 12.36%
The company generated INR 513 Cr. Cash flow from operations
They used to cash flow to become debt free
Additional cash was infused into current investments and purchase of PPE
The EBITDA margin improved 451bps to 21.96% in FY21
PAT margin improved 297bps to 12.36%
The company generated INR 513 Cr. Cash flow from operations
They used to cash flow to become debt free
Additional cash was infused into current investments and purchase of PPE
4/ Management
Ramesh Kumar Dua, Mukand Lal Dua and Nikhil Dua are part of the promoter group
The first two have over 45 years of experience in the industry
Promoters hold 70.9% of shares in the company
Ramesh Kumar Dua, Mukand Lal Dua and Nikhil Dua are part of the promoter group
The first two have over 45 years of experience in the industry
Promoters hold 70.9% of shares in the company
5A/ Sector Analysis
India is 2nd largest footwear producer accounting for 9% of world market
Indian exports 10% of its production
Indian share in global exports is 2% as compared to China with 40%
With rise in disposable income and ample growth room the industry is bound to rise
India is 2nd largest footwear producer accounting for 9% of world market
Indian exports 10% of its production
Indian share in global exports is 2% as compared to China with 40%
With rise in disposable income and ample growth room the industry is bound to rise
5B/ Sector Analysis
Footwear industry recognized by GoI as a focus in ‘Make In India’
Consumers becoming more brand-centric in tier II, tier III cities and rural markets
GST is making the shift from unorganized to organized
Organized segment today caters to 45% of the market
Footwear industry recognized by GoI as a focus in ‘Make In India’
Consumers becoming more brand-centric in tier II, tier III cities and rural markets
GST is making the shift from unorganized to organized
Organized segment today caters to 45% of the market
6/ Competition
7/ Future Outlook
The company is the market leader in the value-priced segment
They will gain market share from unorganized players
Company investing in brand building & promotional activities
Expanding in PAN India & Overseas markets
Streamlined its strong distribution network
The company is the market leader in the value-priced segment
They will gain market share from unorganized players
Company investing in brand building & promotional activities
Expanding in PAN India & Overseas markets
Streamlined its strong distribution network
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