Relaxo Footwears Limited · NSE:RELAXO
Relaxo Footwears — Q3 FY2019 Earnings Presentation
24 slides from Relaxo Footwears's earnings presentation, February 2019
Slide 1: Investor Presentation February 2019
di <P -eBRUARY 2019
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Relaxo Footwears Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 3: FY19: Q3 & 9M Performance
FY19: Q3 & 9M Performance Q3FY19 Performance Revenue (in ₹ crs) EBITDA (in ₹ crs) and EBITDA % PAT (in ₹ crs) and PAT % 600 551 80 72 73 20% 15% 38 36 457 40 60 15% Q3FY19 400 15.7% 30 10% 40 13.2% 10% • Revenues up 21% YoY 20 8.4% 200 20 5% 6.5% 5% • EBITDA up 1% YoY 10 • PAT lower due to 0 0 0% 0
Slide 4: Key updates
Key updates Business Highlights for Q3FY19 and 9MFY19 • Scheme of Amalgamation of Marvel Polymers Private Limited and Relaxo Rubber Private Limited with Relaxo Footwears Limited and their respective shareholders and creditors was sanctioned by the Hon’ble National Company Law Tribunal. • ICRA Ltd (I
Slide 5: Company Overview
Company Overview
Slide 6: About us
About us Relaxo is the largest footwear manufacturer in India, known for ‘Value for Money’ products and a portfolio of mass appeal brands. 15.7 crs 10 6000+ FY18 Brands with SKUs across every Pairs sold in FY18 age group & every 1,949 crs Revenue celebrity ambassadors price point 9 50,000+ 331 302 c
Slide 7: Our evolution to a FutureReady company
Our evolution to a FutureReady company 2017 Corporate identity revamped. 2016 250th COCO Store 2010 opens. Renewable power Capacity of 6.00 MW. 2018 1995 300th retail store opens. IPO to set up a plant in Haryana 8 franchise outlets 2005 (FOFO) on an Launched ‘Flite’ and ‘Sparx’ experimental b
Slide 8: Key investment highlights
Key investment highlights Attractive dynamics of the Indian footwear industry Leading player in the ‘value’ segment with an array of strong brands Manufacturing excellence Pan-India distribution network Robust financial performance FutureReady: Poised for growth 8 Investor Presentation
Slide 9: Attractive dynamics of the Indian footwear industry
Attractive dynamics of the Indian footwear industry Strong growth potential of the Indian footwear industry • India is the second largest footwear producer of the world after China, accounting for 9% of the world market with ~22bn pairs. • Currently India exports only 10% of the footwear produced wi
Slide 10: Relaxo is a leading player in the 'Value' segment
Relaxo is a leading player in the ‘Value’ segment • Market leader in the ‘Value’ segment. • Robust product portfolio. • High Brand Equity Adapting our product portfolio with evolving consumer needs and trends Structured Market Research Product innovation Portfolio rationalization Brand Equity Regula
Slide 11: Our portfolio of brands, with strong identities
Our portfolio of brands, with strong identities Most popular brand of Rubber/ Formal shoes for men Eva slippers Fashionable and light weight Formal and Trendy footwear for footwear women Range of sports and canvas Comfort and stylish belle’s for shoes, sandals & slippers women Trendy and fashionable
Slide 12: Sustained manufacturing excellence
Sustained manufacturing excellence Strong in-house manufacturing capabilities • 9 manufacturing facilities with a daily capacity to produce 7.50 lacs pairs/day. • Continuous focus on optimising operations – Dedicated line for manufacturing fast moving SKUs – Lean manufacturing (waste minimisation wi
Slide 13: Strong distribution network; one of the largest in the Indian footwear industry
Strong distribution network; one of the largest in the Indian footwear industry Jammu & Kashmir 50,000+ Retailers/ MBOs Haryana Delhi Punjab Himachal Pradesh Uttarakhand ~800 Distributors 28 Countries exported to Uttar Pradesh Rajasthan 1 Overseas office in Dubai 331 EBO Bihar Gujarat West Bengal Ma
Slide 14: With a growing online presence
With a growing online presence www.shopatrelaxo.com Partnerships with major ecommerce companies 14 Investor Presentation
Slide 15: Robust financial performance
Robust financial performance In ₹ crores Revenue EBITDA 1949 302 1712 1652 1481 240 231 1212 201 149 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 PAT Volume (No. in crores) 161 15.74 120 120 13.55 13.46 103 12.28 10.78 66 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Financials for FY17 and
Slide 16: With improving operational efficiencies
With improving operational efficiencies EBITDA % PAT % 15.5% 8.3% 13.5% 14.0% 14.0% 7.0% 7.0% 7.2% 12.1% 5.4% FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 RoCE % RoE % 28.0% 31.0% 28.4% 28.0% 25.2% 26.2% 23.7% 25.1% 19.8% 21.2% FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 16 Investor Prese
Slide 17: Debt ratings and profile
Debt ratings and profile Net Debt/ Equity (X) Interest coverage ratio (X) 29.4 0.7 0.6 0.5 12.8 8.7 8.6 0.2 0.2 5.2 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Credit Ratings Agency Instruments Ratings Comments Indicates very strong degree of safety for short term debt instruments. ICRA Short
Slide 18: Consistent dividend payout
Consistent dividend payout 25 150% 160% Dividend in ₹ crores 140% 20 Dividend as a % of Face value 120% 100% 15 100% 80% 60% 10 50% 50% 60% 18.0 40% 30% 12.0 40% 5 6.0 7.2 20% 1.8 2.4 3.0 0 0% FY12 FY13 FY14 FY15 * FY16 FY17 FY18 * Post Bonus 18 Investor Presentation
Slide 19: Well-positioned for our next phase of growth
Well-positioned for our next phase of growth Streamline the Increase exports by distribution network Continued expanding our – especially in investment in our presence in underpenetrated brands to sustain international markets demand pull markets 1 2 3 4 5 Continued Increase the manufacturing presen
Slide 20: Awards and recognition
wb BW BUSINESSWORLD EY Entrepreneur BERG Mr. Ramesh Kumar Dua Of The Year Mr. Ramesh Kumar Dua awarded as India's Best CEO Mr. Ramesh Kumar Dua amongst ‘st Place for Excellent (Consumer Goods) : EY Entrepreneur of the year 2017 India’s Most Valuable CEOs Export Performance Business Today - 2017 (Con
Slide 21: Highly experienced Board of Directors
Highly experienced Board of Directors Ramesh Kumar Dua, Managing Director Mukand Lal Dua, Whole Time Director Over 42 years of experience in sales and marketing, production and new product Over 45 years of experience in new product development and quality control in development in Footwear Indus
Slide 22: And a strong management team
And a strong management team Mr. Gaurav Dua, Mr. Ritesh Dua, Mr. Nitin Dua, Mr. Atul Pandey, Executive VP - Executive VP - Finance Executive VP - Retail VP – Human Resources Marketing MBA having over 16 years MBA having over 17 years MBA having over 14 years PGD – PM & IR having over of experience i
Slide 23: Shareholding pattern
Shareholding pattern Promoter & Promoter Group 19.81% Mutual Funds Foreign Portfolio Investors Others 3.80% 2.19% 74.20% 23 Investor Presentation
Slide 24: For further information, please contact
For further information, please contact: Company : Relaxo Footwears Limited CIN: L74899DL1984PLC019097 Mr. Vikas Tak vikastak@relaxofootwear.com www.relaxofootwear.com