Relaxo Footwears (RELAXO) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue from operations was INR 679 crore, down 5% year-over-year due to weak market demand.

• PAT for Q2 FY25 was INR 36.7 crore, with margin at 5.4%, impacted by higher depreciation and lower volumes.

• EBITDA for Q2 FY25 was INR 88 crore, margin stable at 12.9% versus 12.8% last year.

• H1 FY25 revenue was INR 1,428 crore; EBITDA at INR 187 crore, margin at 13.1%.

• Unaudited financial results for the quarter and half year ended September 30, 2024, were reviewed and approved by the Board on November 8, 2024.

Financial highlights

• Q2 FY25 revenue declined 5% year-over-year to INR 679 crore; H1 FY25 revenue fell 1.8% to INR 1,428 crore.

• Q2 FY25 EBITDA was INR 88 crore, down from INR 92 crore last year; PAT was INR 36.7 crore, down from INR 44 crore.

• H1 FY25 EBITDA margin at 13.1%, down from 13.7% in H1 FY24.

• CapEx of INR 49 crore incurred till 30 September 2024.

• Earnings per share (basic and diluted) for H1 FY25 was INR 3.26, compared to INR 4.04 in H1 FY24.

Outlook and guidance

• Expecting demand improvement in Q3 due to wedding season.

• Volume growth for FY25 expected to be flattish due to H1 decline.

• Targeting 8-10% growth in Sparx category; overall revenue growth expected to be positive but cautious.

• Margin improvement initiatives ongoing, but FY25 margin guidance revised to around 13% from earlier 15-16%.

• Management highlights strong growth potential in the Indian footwear industry, driven by rising disposable income, premiumization, and organized retail expansion.