Relaxo Footwears skids after weak Q4 performance

Shares of the footwear maker fell 4.74% to Rs 719.95 after the company said its Q4 earnings were severely impacted by the nationwide lockdown.

The company's net profit fell 4.8% to Rs 51.8 crore on a 15% decline in net sales to Rs 540.58 crore in Q4 March 2020 over Q4 March 2019.

"Revenue of the company has grown at 12.89% till December 2019, however, due to nationwide lockdown in the month of March 2020, growth for the current quarter has been adversely effected," the company said. The government enforced the nationwide lockdown in March to contain the spread of COVID-19.

Profit before tax stood at Rs 69.04 crore in Q4 FY20, down by 12.3% from Rs 78.70 crore in Q4 FY19. Current tax expense fell 27.4% to Rs 16.52 in Q4 FY20 from Rs 22.76 crore in Q4 FY19.

Total expenses shrunk 14.8% year-on-year (YoY) to Rs 475.53 in Q4 FY20, due to lower raw material costs (down 15.1% YoY) and lower other expenses (down 12.9% YoY).

Consolidated net profit rose 29% to Rs 226.25 crore on 5.2% increase in net sales to Rs 2,410.48 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). PBT stood at Rs 291.71 crore in FY20, down by 8.9% from Rs 267.98 crore in FY19.

Relaxo Footwears is engaged in production of Hawaii slippers, light weight slippers, canvas shoes, PVC footwear etc.

Powered by Capital Market - Live News