Relaxo Footwears Q4 net profit down 4.8% to Rs 51.80 cr

Relaxo Footwears Ltd on Friday reported a 4.79 per cent decline in net profit to Rs 51.80 crore in the fourth quarter ended March, impacted by COVID-19 and subsequent disruptions in the market. It had posted a net profit of Rs 54.41 crore in the January-March quarter last fiscal, Relaxo Footwears said in a regulatory filing.

Its revenue from operations was down 14.96 per cent at Rs 540.58 crore during the period under review as against Rs 635.70 crore in the same quarter previous fiscal.

"The Company's operations were impacted in the month of March 2020, following nationwide lockdown announced by Government of India in view of COVID-19. The Government has permitted certain activities from April 2020, hence the Company after requisite approvals is gradually ramping up the operations," it said.

The firm's expenses stood at Rs 475.53 crore in Q4/FY 2019-20 as against Rs 558.33 crore, down 14.82 per cent.

"Revenue of the Company has grown at 12.89 per cent till December 19, however, due to the nationwide lockdown in the month of March 2020, growth for the current quarter has been adversely effected," Relaxo said.

However, for 2019-20, Relaxo Footwears net profit was up 28.96 per cent at Rs 226.25 crore. It was Rs 175.44 crore in the previous fiscal.

Its revenue from operations in 2019-20 was Rs 2,410.48 crore, up 5.16 per cent. It was Rs 2,292.08 crore in 2018-19.

The company will continue to closely monitor any material changes to future economic conditions due to uncertainties linked to COVID -19, said Relaxo Footwears.

"The company has done assessment of recoverability and carrying values of its assets comprising of receivables, inventories, plant and equipment, intangible assets and on the basis of assessment, the company expects to recover the carrying amount of these assets," it added.

Meanwhile, in a separate filing Relaxo Footwears has said its board in a meeting held on Saturday has decided not to declare any final dividend for the financial year 2019-20.

"The interim dividend for the financial year 2019-20 of Rs 1.25 per equity share declared on February 27, 2020 and paid in the month of March, 2020 will be subject to ratification by the shareholders at the ensuing Annual General Meeting of the Company. Thus the total dividend for the financial year 2019-20 remains Rs 1.25 per equity share," it said.