Relaxo Footwears Q4 Review - Sturdy Performance Continues, Maintain Positive Bias: Dolat Capital

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Dolat Capital Report

Ralaxo Footwears Ltd.'s revenue jumped 38% YoY to Rs 7.5 billion in Q4 FY21 – exceed our estimate.

Favorable base, normalization of business conditions and increased demand for open footwear aided growth.

Gross margin contracted by 300 basis points due to increased raw material and unfavorable product mix.

Nevertheless, Ebitda margin expanded by 400bps to 21.8% due to reduction in other operational costs.

We believe that the margins would reduce here on, due to anticipated increase in advertising and promotion spends and other expenses with opening up of markets.

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