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Relaxo Footwears Limited Q4 FY22 Earnings Concall Insights

#RELAXO #RELAXOQ4 #RelaxoFootwears #concall #concalls #insights #results #stocks #TrendingStocks #earnings #stockmarketindia #stocktowatch
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Q&A Insights: Tejas Shah of Spark Capital asked about realization split increase that happened between price increase and premiumization during FY22 and 4Q. Ramesh Dua MD replied that price increase was about 25% across all categories, in few categories more and few others less.

Q&A Insights: Tejas Shah with Spark Capital asked about Sparx brand in ecommerce platforms. Gaurav Dua EVP Marketing said that Sparx brand has done very well in e-commerce platform; the growth rate was more than 40%. So there is traction of sports shoe selling more on e-comm.

Q&A Insights: Tejas Shah with Spark Capital also asked about the total exposure of online as a channel for the company. Gaurav Dua EVP Marketing replied that RELAXO’s total exposure was around 10% last year and now it’s 11.5%.

Q&A Insights: Gaurav Jogani of @AXIS_Capital asked if the bulk of the RM inflation is done or does RELAXO need to take further price increases. Ramesh Dua MD clarified that the situation continues to remain unpredictable. RELAXO will have to be watchful of it and act accordingly.

Q&A Insights: Gaurav Jogani with @AXIS_Capital enquired about volume trajectory going ahead in the light of the sharp RM inflation. Gaurav Dua EVP Marketing replied that there has been pressure on volume. And added that RELAXO is hoping that 2Q onwards it can see some recovery.

Q&A Insights: Bharat Chhoda with @ICICI_Direct asked the reason for having higher working capital cycle in 4Q. Ramesh Dua MD answered that it was due to pressure on the sale. So inventory increased abnormally more than expected due to pressure on sale and prices.

Q&A Insights: Bharat Chhoda with @ICICI_Direct asked about the volumes going ahead and the margin outlook at current level of prices. Ritesh Dua EVP Finance said that FY22 was a little tough year comparatively. RELAXO is hopeful that FY20 margins of 17% are definitely achievable.

Q&A Insights: Mythili Balakrishnan with Alchemy Capital asked about capex plans. Ramesh Dua MD said RELAXO does not have any intent to spending in south, but are expanding the capacity in north. In FY23, RELAXO intends to spend around INR100 crore.

To read further on the detailed analysis of #RELAXO #Q4 concall Q&A …

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