Relaxo Footwears Ltd

FROM THE MANAGING DIRECTOR'S DESK

Dear Stakeholders,

I hope this message finds you and your family in good health.

It is my privilege to present to you Relaxo Footwears Limited's Annual Report for the financial year 2024-25, a year marked by macroeconomic headwinds, strategic realignment and the early stages of a focused transformation journey aimed at long term growth.

As you are aware, FY 2024-25 was a challenging period for the Indian footwear industry. Weak consumer sentiment, muted discretionary spending and persistent inflation, compounded by rising household debt and low income growth, particularly in the urban areas, led to weak consumer demand across industries. Amidst this difficult environment, your Company continued to navigate near term volatility while laying the foundation for sustained growth through long term initiatives.

During the year, your Company achieved a revenue of H2789.61 crores and profit of H170.33 crores. Detailed report on financial performance of the Company is provided in point no. 2 & 3 of the Board's Report. In line with our commitment to shareholders, your Board has recommended a final dividend @300% equivalent to H3/- per equity share of H1/- each fully paid up for the FY25.

While your Company undertook several initiatives, one of the key milestones was the successful deployment and scale up of the ‘Relaxo Parivaar' App, a dedicated digital outreach platform that enhances communication and deepens engagement with our retail partners (MBOs). We are now a growing family of over 70,000+ retailers connected through the platform, enabling seamless rewards tracking and redemption, thereby increasing retailer satisfaction and fostering long-term loyalty.

As a leading national footwear company, your Company continued to deepen its connection with consumers. Our portfolio today includes two H1,000 crore plus brands, Sparx and Flite alongside Relaxo and Bahamas, both in the H100-500 crore range. During the year, we amplified our brand visibility through integrated 360 degree campaigns for Sparx, Flite and Bahamas across multiple mediums which helped drive stronger brand recall and enhanced consumer preference. Our TVC for these brands were especially well received and appreciated by our customers.

Product innovation has always remained a priority for your Company. To cater to the ever changing trends in the consumer buying behavior and to develop products with latest features & enhanced comfort, we have been conducting regular market-sensing exercises and constantly seek feedback from our partners and consumers. This had helped the Company to launch over 275 new, best-in-class designs during the last year.

At the same time, to strengthen our manufacturing excellence, your Company introduced advanced textile cutting and pattern-stitching machines, which have begun to enhance both productivity and product consistency across categories. The Company also upgraded the testing capabilities at our Innovation Centre with world-class instruments, reinforcing our commitment to quality, precision, and continuous improvement.

In parallel, your Company undertook several initiatives, ranging from energy-saving measures, process improvements to sharper sourcing practices, which are aimed at enhancing cost productivity and driving operational efficiencies. These efforts are still evolving, but we expect their positive impact to become increasingly visible in the coming quarters through stronger margins, better resource utilisation and improved speed to market. Collectively, these steps reflect our intent to build a more resilient, quality-driven and efficient manufacturing backbone to support long-term growth.

Your Company's continued efforts have been recognized and appreciated by esteemed industry bodies. I am pleased to share that the Company has been awarded Best Retailer's Award (Footwear Category) for 2025 by the Retail Association of India and was also recognised with the No. 1 Exporter Award in the Non-Leather Footwear category by the Council for Leather Exports for its continued commitment to strengthening its global presence through high-quality, value-driven exports.

We extend our heartfelt gratitude to our customers, business partners, Board of Directors, bankers, employees, and all other stakeholders for their continued trust and support. Your belief in the Company inspires us to move forward. We look forward to continuing this journey together and building a brighter future.