Relaxo Footwears plans to invest Rs 150 crore in FY21

Relaxo Footwears Ltd has planned to invest Rs 150 crore in FY21 to set up a new manufacturing capacity in Bhiwadi (Rajasthan) to meet up the growing demand for open footwear such as slippers and sandals in the backdrop of the COVID-19 pandemic.

Open footwear contributes approximately 80 per cent of the company’s total revenue. The company has mentioned that the demand for closed footwear has been adversely affected in the pandemic but it's likely to gain traction going forward due to the onset of winter.

In the recent quarter of Q2FY21, the consolidated revenue for the quarter Q2FY21 came in at Rs 575.87 crore as against Rs 621.77 crore in the corresponding quarter last year, registering a 7.38 per cent YoY decrease. Meanwhile, the exports of the company contributed 4 per cent of revenue for the quarter.

EBITDA for the quarter grew by 21.18 per cent YoY to Rs 126 crore as against Rs 104.72 crore in the corresponding quarter last year, with a corresponding margin expansion of 520 bps. EBITDA margin for the quarter stood at 22.04 per cent.

The net profit for the quarter came in at Rs 75.1 crore as against Rs 70.54 crore in the corresponding quarter last year, with a YoY growth of 6.46 per cent.

The company opened 396 new exclusive brand outlets in H1FY21.

Today, the stock of Relaxo Footwears jumped nearly two per cent and made an intraday high of Rs 749.95 on BSE.