Relaxo Footwears - Well Placed To Benefit From Large Growth Opportunity: ICICI Direct
Slippers hang on display. (Photographer: Prashanth Vishwanathan/Bloomberg)

Relaxo Footwears - Well Placed To Benefit From Large Growth Opportunity: ICICI Direct

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Relaxo Footwears Ltd.’s Q4 FY21 print signifies the inherent strength of the business model to capture market share and ability to generate robust free cashflows.

Revenue for the quarter increased 38% YoY to Rs 747.7 crore (up 17% QoQ, two-year compound annual growth rate: 8%).

Demand for low ticket size products like slippers/open sandals (~80% of product portfolio) has been more intense in recent times.

Gross margin contracted 300 basis points YoY to 56.8% due to rise in raw material prices.

However, on account of positive operating leverage, tight leash on operating overheads, Ebitda margins expanded significantly by 400 basis points YoY to 21.8% (Q3 FY21: 22.1%).

Click on the attachment to read the full report:

ICICI Direct Relaxo Company Update.pdf

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