Profit before tax (PBT) was at Rs 44.61 crore in the third quarter of FY25, down 12.24% as against Rs 50.83 crore in Q3 FY24.
Total expenses fell 5.81% YoY to Rs 629.09 crore in the quarter ended 31st December 2024. Cost of material consumed, including packing material was at Rs 227.08 crore (down 13.73% YoY) and employee benefits expenses stood at Rs 96 crore (down 0.04% YoY) during the quarter.
EBITDA declined by 4% to Rs 83 crore in Q3 FY25, compared to Rs 87 crore in Q3 FY24. However, the company maintained its EBITDA margin at 12.5% for the quarter, up from 12.2% in Q3 FY24.
On a 9-month basis, the company’s net profit declined by 17.95% to Rs 114.11 crore, while revenue from operations dropped by 3.34% to Rs 2,094.46 crore in 9M FY24 compared to 9M FY23.
Ramesh Kumar Dua, chairman and MD said, “Given the overall weak consumer demand, particularly in the mass and value segments, the Company’s continued focus has been to revamp the distribution system. The introduction of the “Relaxo Parivaar” app has not only helped us to increasingly streamline our network of distributors and retailers but is also setting the stage for the future expansion of this network.
We believe this effort, while exhibiting short term pain over the last few quarters in terms of decline in volumes, is slowly getting accepted by all business partners. We expect our distribution system to stabilise over the next 2-3 quarters and are hopeful that the results will begin to show post that.
Furthermore, we continue to improve our online presence through the “Brand as a Seller” model and are regularly launching exclusive offerings which shall contribute to the growth of this important channel. On the cost front, our focus remains on cost optimization efforts targeting operational efficiencies and involves the Company’s manufacturing facilities as well as the vendors.
We are confident that the curated investments that we have undertaken in this depressed market scenario will set the stage for growth and profitability in the medium to longer term.”
Relaxo Footwears is engaged in production of Hawaii slippers, light weight slippers, canvas shoes, PVC footwear etc.
Shares of Relaxo Footwears declined 0.71% to Rs 545.85 on the BSE.