Relaxo Footwears Limited · NSE:RELAXO
Relaxo Footwears — Q2 FY20 Earnings Presentation
24 slides from Relaxo Footwears's earnings presentation, Nov 2, 2019
Slide 1: Investors Presentation September 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: Q2 FY20 and H1FY20 Performance
Q2 FY20 and H1FY20 Performance Q2FY20 Performance Revenue from Operations (in ₹ crs) EBITDA (in ₹ crs) and EBITDA % PAT (in ₹ crs) and PAT % 622 105 20% 80 71 15% 600 543 Q2 FY20 100 74 15% 60 400 16.8% 39 10% • Revenue from operations 11.3% 13.5% 10% 40 up by 14% to ` 622 Crore 50 200 7.3% 5% mainl
Slide 4: Company Overview
Company Overview
Slide 5: Highlights FY19
Highlights FY19 • Largest footwear manufacturer in India. • ‘Value for Money’ products. • Portfolio of mass appeal brands. 2,292 Cr. 324 Cr. 175 Cr. Revenue from EBITDA PAT operations 18.4 Cr. 9 6000+ Pair sold Brands SKUs 8 50,000+ 370* State of the art Retailers served Exclusive brand manufacturin
Slide 6: Moving Forward, Gaining Momentum.
Moving Forward, Gaining Momentum. 8 6
Slide 7: Key investment highlights
Key investment highlights Favourable dynamics of Indian footwear industry Leading player in the ‘value’ segment with an array of strong brands Manufacturing excellence Pan-India distribution network Robust financial performance Future ready 7
Slide 8: 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 pair. • Currently India exports only 10% of the footwear produced wit
Slide 9: 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 Aligning our product portfolio with evolving consumer needs and trends Structured Market Research Product innovation Portfolio rationalization Brand Equity Regula
Slide 10: Our portfolio of brands, with strong identities
Our portfolio of brands, with strong identities Premium range of sports Formal shoes for & canvas shoes, sandals & men slippers Fashionable and light Trendy footwear for weight footwear women Most popular iconic Household name brand of Hawai slippers synonymous with quality, comfort & value Trendy a
Slide 11: Sustained manufacturing excellence
Sustained manufacturing excellence Strong in-house manufacturing capabilities • 8 manufacturing facilities with a capacity to produce ~7.5 Lac pair/day. • Continuous focus on optimising operations – Dedicated line for manufacturing fast moving SKUs – Lean manufacturing (waste minimisation without co
Slide 12: 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 Retailers/ MBOs 50,000+ Haryana Delhi Punjab Himachal Pradesh Distributors ~800 Countries exported to ~30 Uttarakhand Rajasthan Uttar Pradesh EBO 370 Overseas office in Dubai 1 Bihar Gujarat West Bengal M
Slide 13: With a growing online presence
With a growing online presence www.shopatrelaxo.com Partnerships with major ecommerce companies 13
Slide 14: Robust financial performance..
Robust financial performance.. ₹ in Crore Revenue from Operations EBITDA 2292 324 1949 302 1712 1652 300 240 231 1481 201 200 100 0 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 PAT Volume (in crs) 175 18.4 161 150 120 120 15.7 103 13.6 13.5 100 12.3 50 0 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17
Slide 15: with operational efficiencies
with operational efficiencies EBITDA % PAT % 15.5% 8.3% 14.1% 7.3% 7.6% 13.5% 14.0% 14.0% 7.0% 7.0% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 RoCE % RoE % 31.7% 31.8% 31.0% 32.0% 28.4% 27.2% 26.4% 22.1% 23.6% 18.8% FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 15
Slide 16: Debt ratings and profile
Debt ratings and profile Net Debt/ Equity (X) Interest coverage ratio (X) 39.8 29.4 0.6 0.5 12.8 0.2 0.2 8.7 8.6 0.1 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Credit Ratings Agency Instruments Ratings Comments Indicates very strong degree of safety for short term debt instruments. ICRA Short
Slide 17: Consistent dividend payout
Consistent dividend payout Dividend in ₹ crore 25 180% 200% Dividend as a % of Face value 20 150% 150% 15 100% 100% 10 60% 18.0 50% 50% 22.3 40% 50% 5 30% 12.0 6.0 7.2 1.8 2.4 3.0 0 0% FY12 FY13 FY14 FY15* FY16 FY17 FY18 FY19 * Post Bonus 17
Slide 18: EPS and Net Worth
EPS and Net Worth Net Worth in ₹ crore EPS in ₹ 1200 14.15 16.00 13.40 1000 12.00 10.02 9.99 800 8.59* 600 8.00 1105 400 761 606 4.00 200 480 368 0 - FY15 FY16 FY17 FY18 FY19 * Post Bonus 18
Slide 19: Advancing towards Tomorrow, Today
Advancing towards Tomorrow, Today Streamline the Continued Increase exports by distribution network investment in our expanding our – especially in brands to sustain presence in underpenetrated demand pull international markets markets 1 2 3 4 5 6 Continued Innovation and Increase the manufacturing
Slide 20: Highly experienced Board of Directors
Highly experienced Board of Directors Ramesh Kumar Dua, Managing Director Mukand Lal Dua, Whole Time Director Over 43 years of experience in sales and marketing, production and new product Over 46 years of experience in new product development and quality control in development in Footwear Indus
Slide 21: And a strong management team
And a strong management team Mr. Gaurav Dua, Mr. Ritesh Dua, Mr. Nitin Dua, Mr. Ashish Srivastava , Executive VP - Executive VP - Finance Executive VP - Retail VP – Human Resources Marketing MBA having over 18 years MBA having over 19 years MBA having over 15 years MBA having over 21 years of experi
Slide 22: Shareholding pattern as of 30th September, 2019
Shareholding pattern as of 30th September, 2019 25728 * (19.87%) Promoter & Promoter Group Mutual Funds 14* (6.29%) Foreign Portfolio Investors 12* (71.02%) Others * No. of Shareholders with Shareholding Percentage 22
Slide 23: Awards and Accolades
Awards and Accolades (ousiness|today) Mr. Ramesh Kumar Dua India's Best CEO (Consumer Goods): 2017 COUNCIL FOR LEATHER EXPORTS ——_——— ¥ Place for Excellent Export Performance 2017-18 WORLD HRD CONGRESS World HRD Congress North India Best Employer Brand 2018 [business] business India's Most Valuable
Slide 24: Thank You
Thank You RELAXO