Relaxo Footwears Limited (Relaxo) is largest footwear manufacturing company in India, which deals in non-lea

including major brands like Relaxo, Flite, Sparx and Bahamas. The company sells its products through ~50,000
manufacturing facilities, five in Bahadurgarh (Haryana), two in Bhiwadi (Rajasthan) and one in Haridwar (Uttar
NIFTY and Sensex. Before getting into details about Relaxo Footwears let us look at the Industry trend first..

Currently exports contributes 4% of its revenue and E Retail contributes 10% of revenue. Relaxo have strong br
global average of 4 shoes thus there is a very long run growth left for Relaxo Footwears.

Company Name Relaxo Footwear Limited

Company Symbol (Ticker) RELAXO

ISIN INE131B01039

Industry Footwears

Sector Footwears

Stock Exchange (Shares Listed ) SENSEX

Latest Annual Statement 31-Mar-20

First Year of Projections 31-Mar-21

Date of Projections 24-Feb-22

Reporting Currency INR

 in India, which deals in non-leather products i.e. rubber / EVA / PU slippers, canvas/ sport / school shoes, sandals, etc. It has a p
lls its products through ~50,000 retailers served through distributors, 390 retail outlets, exports, e-commerce, modern trade etc. I
han) and one in Haridwar (Uttarakhand). The company’s business process is managed through SAP & SAP HANA. It is a public
ok at the Industry trend first..

revenue. Relaxo have strong brand , able management and superior business . Currently Indian Footwear are less penetrated . 1.
otwears.

Target Price 1347.0

Current Stock Price 1197.0

Date of Stock Price 24-Feb-22

52-week High 1272

52-week Low 578.2

Market Cap (mn) 29,738.3

Primary Shares Outstanding (mn) 24.8

 shoes, sandals, etc. It has a portfolio of brands
ommerce, modern trade etc. It has 8 state of the art
& SAP HANA. It is a publicly listed entity in

otwear are less penetrated . 1.6 pairs as against

Relaxo Footwears Limited 31-Mar-15 31-Mar-16
Revenue Model Y Y
(in INR Crores) Act Act

PRODUCT AND SERVICE REPORTING

Relaxo - Footwears
Revenue 1,478.4 1,715.6
YOY growth % 16.0%
Change in CC %

Number of Pairs Sold (Crores) 12.28 13.55

YOY growth % 3.0% 10.3%

Revenue per unit (crores) 120.4 126.6

YOY growth % 5.2%

Relaxo-Scrap Sales
Revenue 5.3 5.0
% of Revenue 0.4% 0.3%

Segment Revenue 1,483.6 1,720.6

YOY growth % 16.0%

Total Revenue 1,483.6 1,720.6

YOY growth % 80.7% 16.0%

Revenue Contribution (%)

Footwears 99.6% 99.7%
Scrap Sales 0.4% 0.3%

GEOGRAPHIC SEGMENTAL REPORTING

Within India
Outside India
31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23
Y Y Y Y Y Y Y
Act Act Act Act Est Est Est

1,632.8 1,946.1 2,266.5 2,383.0 2,345.8 2,890.1 3,495.8

-4.8% 19.2% 16.5% 5.1% -1.6% 23.2% 21.0%

13.46 15.74 18.39 17.92 19.17 21.48 24.05

-0.7% 16.9% 16.8% -2.6% 7.0% 12.0% 12.0%

121.3 123.6 123.2 133.0 122.3 134.6 145.3

-4.2% 1.9% -0.3% 7.9% -8.0% 10.0% 8.0%

4.76 5.89 9.37 11.7 11.7 14.5 17.5

0.3% 0.3% 0.4% 0.5% 0.5% 0.5% 0.5%

1,637.6 1,952.0 2,275.9 2,394.7 2,357.6 2,904.5 3,513.3

-4.8% 19.2% 16.6% 5.2% -1.6% 23.2% 21.0%

1,637.6 1,952.0 2,275.9 2,394.7 2,357.6 2,904.5 3,513.3

-4.8% 19.2% 16.6% 5.2% -1.6% 23.2% 21.0%

99.7% 99.7% 99.6% 99.5% 99.5% 99.5% 99.5%

0.3% 0.3% 0.4% 0.5% 0.5% 0.5% 0.5%

2,180.7 2,291.4
85.8 91.6
31-Mar-24 31-Mar-25
Y Y
Est Est

4,037.7 4,663.5
15.5% 15.5%

26.46 29.10
10.0% 10.0%

152.6 160.2
5.0% 5.0%

20.2 23.3
0.5% 0.5%

4,057.9 4,686.8
15.5% 15.5%

4,057.9 4,686.8
15.5% 15.5%

99.5% 99.5%
0.5% 0.5%
Relaxo Footwears Limited 31-Mar-15 31-Mar-16
P&L Y Y
(in INR Crores) Act Act

Revenue 1,483.6 1,720.6

Cost of goods sold (645.4) (707.9)
Cost of goods sold (Ex-D&A) (605.5) (660.8)
Gross Profit (Reported) 838.2 1,012.7
% margins 56.5% 58.9%
Gross Profit (Adj) 878.1 1,059.8
% margins 59.2% 61.6%

Employee Benefit Expenses (153.7) (177.9)

Selling General Administration Expenses (500.2) (603.2)

Total Opex (653.9) (781.0)

Other Operating Income 16.4 13.8
EBITDA 200.6 245.5
% margins 13.5% 14.3%
D&A (39.9) (47.1)
Other Income 0.4 5.0

EBIT (Adj) 161.1 203.3

% margins 10.9% 11.8%
EBIT (Reported) 161.1 203.3
% margins 10.9% 11.8%
Finance income - interest 0.0 1.2
Finance expense - interest (18.5) (27.0)
PBT 142.6 177.6
Income Tax Expenses (39.6) (57.3)
Tax Rate % 27.8% 32.3%
Net Profit Before Extraordinary 103.05 120.3
Remeasurement Gains / (Losses) 0.0 (0.01)

Net Profit (Reported) 103.0 120.27

Basic earnings per share (A$) 8.6 10.0

Diluted earnings per share (A$) 8.6 10.0
Basic earnings per share (A$) - Before Extraordinary 8.6 10.0
Diluted earnings per share (cents) - Before Extraordinary 8.6 10.0
Weighted Average Number of Shares (Basic) 12.0 12.0
Weighted Average Number of Shares (Diluted) 12.0 12.0
Total Shares Outstanding 12.1 12.1

Dividends paid 123.8 120.1

Dividend Per Share DPS (A$) 1.90 2.30

Dividend Payout Ratio 22.1% 23.0%

Cost Assumptions

Cost of goods sold 645.4 707.9

% of revenue 43.5% 41.1%

Employee Benefit Expenses 153.7 177.9

% of revenue 10.4% 10.3%

Selling General Administration Expenses 500.2 603.2

% of revenue 33.7% 35.1%

Other Income 16.4 13.8

% of revenue 1.1% 0.8%

Other Expenses 0.0

% of revenue 0.0% 0.0%
31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25
Y Y Y Y Y Y Y Y Y
Act Act Act Act Est Est Est Est Est

1,637.6 1,952.0 2,275.9 2,394.7 2,357.6 2,904.5 3,513.3 4,057.9 4,686.8

(746.7) (890.5) (1,072.3) (1,039.3) (966.6) (1,248.9) (1,510.7) (1,744.9) (2,015.3)
(695.2) (836.2) (1,009.9) (929.9) (856.3) (1,141.9) (1,390.4) (1,624.9) (1,878.2)
890.9 1,061.4 1,203.5 1,355.4 1,391.0 1,655.6 2,002.6 2,313.0 2,671.5
54.4% 54.4% 52.9% 56.6% 59.0% 57.0% 57.0% 57.0% 57.0%
942.4 1,115.8 1,266.0 1,464.8 1,501.2 1,762.6 2,122.9 2,433.0 2,808.6
57.5% 57.2% 55.6% 61.2% 63.7% 60.7% 60.4% 60.0% 59.9%

(177.0) (214.1) (258.7) (294.0) (282.9) (348.5) (386.5) (446.4) (468.7)

(497.4) (557.7) (636.8) (668.2) (613.0) (813.3) (913.5) (1,055.0) (1,171.7)

(674.4) (771.8) (895.5) (962.2) (895.9) (1,161.8) (1,299.9) (1,501.4) (1,640.4)

14.4 12.5 16.2 15.8 23.6 29.0 35.1 40.6 46.9
230.9 302.1 324.3 409.0 518.7 522.8 737.8 852.1 1,078.0
14.1% 15.5% 14.2% 17.1% 22.0% 18.0% 21.0% 21.0% 23.0%
(51.5) (54.3) (62.4) (109.4) (110.3) (107.1) (120.4) (120.0) (137.1)
12.6 3.6 12.3 8.6 0.0 0.0 0.0 0.0 0.0

192.1 251.4 274.2 308.2 408.4 415.7 617.4 732.2 940.8

11.7% 12.9% 12.0% 12.9% 17.3% 14.3% 17.6% 18.0% 20.1%
194.4 251.0 274.3 307.5 408.4 415.7 617.4 732.2 940.8
11.9% 12.9% 12.1% 12.8% 17.3% 14.3% 17.6% 18.0% 20.1%
1.0 0.9 0.7 0.4 0.1 5.0 6.7 12.0 18.1
(15.0) (8.6) (6.9) (16.9) (17.8) (19.0) (24.8) (35.8) (43.6)
178.0 243.6 268.0 291.7 390.6 401.7 599.4 708.4 915.3
(58.1) (82.6) (92.5) (65.5) (105.5) (100.4) (149.8) (177.1) (228.8)
32.6% 33.9% 34.5% 22.4% 27.0% 25.0% 25.0% 25.0% 25.0%
120.0 161.1 175.4 226.3 285.1 301.3 449.5 531.3 686.5
2.3 (0.4) 0.1 (0.7) 0.0 0.0 0.0 0.0 0.0

122.2 160.7 175.5 225.6 285.1 301.3 449.5 531.3 686.5

10.0 13.4 7.1 9.1 11.5 12.2 18.2 21.5 27.8

10.0 13.4 7.1 9.1 11.5 12.2 18.1 21.4 27.7
9.8 13.4 7.1 9.1 11.5 12.2 18.2 21.5 27.8
9.8 13.4 7.1 9.1 11.5 12.2 18.1 21.4 27.7
 12.2 12.0 24.8 24.7 24.7 24.7 24.7 24.7 24.7
12.2 12.0 24.9 24.8 24.8 24.8 24.8 24.8 24.8
12.3 12.1 24.9 24.9 24.8 24.8 24.8 24.8 24.8

143.5 161.1 181.8 0.0 57.0 75.3 112.4 132.8 171.6

2.70 3.00 3.30 1.60 2.31 3.05 4.54 5.37 6.94

27.0% 22.4% 46.7% 17.5% 20.0% 25.0% 25.0% 25.0% 25.0%

746.7 890.5 1,072.3 1,039.3 966.6 1,248.9 1,510.7 1,744.9 2,015.3

45.6% 45.6% 47.1% 43.4% 41.0% 43.0% 43.0% 43.0% 43.0%

177.0 214.1 258.7 294.0 282.9 348.5 386.5 446.4 468.7

10.8% 11.0% 11.4% 12.3% 12.0% 12.0% 11.0% 11.0% 10.0%

497.4 557.7 636.8 668.2 613.0 813.3 913.5 1,055.0 1,171.7

30.4% 28.6% 28.0% 27.9% 26.0% 28.0% 26.0% 26.0% 25.0%

14.4 12.5 16.2 15.8 23.6 29.0 35.1 40.6 46.9

0.9% 0.6% 0.7% 0.7% 1.0% 1.0% 1.0% 1.0% 1.0%

0.0 2.2 4.4 0.0 11.8 14.5 17.6 20.3 23.4

0.0% 0.1% 0.2% 0.0% 0.5% 0.5% 0.5% 0.5% 0.5%
Relaxo Footwears Limited 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18
P&L Y Y Y Y
(in INR Crores) Act Act Act Act

ASSETS
Cash and cash equivalents 4.5 2.2 3.5 3.1
Bank Balances and Other Cash 0.0 0.1 0.1 0.9
Trade and other receivables 82.1 108.7 123.2 192.4
Loans 14.1 0.3 0.3 0.9
Inventories 248.7 285.8 290.2 313.9
Current tax assets 0.0 0.0 0.0 0.0
Other Financial Assets 0.0 6.2 2.4 1.3
Other Current Assets 5.8 21.3 26.0 68.2
Total current assets 355.2 424.7 445.73 580.6

Other receivable 0.0 0.0 0.0 0.0

Capital WIP 1.3 28.0 61.9 136.4
Property, plant and equipment 466.9 462.3 479.8 469.8
Intangible assets 5.6 68.2 61.7 56.2
Investments 0.1 6.2 1.6 0.8
Loans 12.1 13.7 14.6 16.2
Other Non Current Assets 0.0 5.5 4.0 8.6
Right of use assets 0.0 0.0 0.0 0.0
Total non-current assets 486.0 583.9 623.6 688.1

Total assets 841.2 1,008.6 1,069.3 1,268.7

LIABILITIES
Trade and other payables 92.6 122.4 125.7 174.9
Forward exchange contracts 0.0 0.0 0.0 0.0
Loans and borrowings 66.5 89.6 60.9 86.1
Deffered tax liabilities 0.0 2.8 1.2 2.6
Other Financial Liability 0.0 90.4 99.4 92.6
Provisions 22.1 4.7 2.4 6.8
Other Current Liability 113.4 60.2 70.3 70.5
Lease Liability 0.0 0.0 0.0 0.0
Total current liabilities 294.62 370.05 359.87 433.48

Trade and other payables 0.0 0.0 0.0 0.0

Forward exchange contracts 0.0 0.0 0.0 0.0
Borrowings 144.5 119.9 70.9 39.3
Deffered tax liabilities 24.9 23.3 25.5 26.3
Provisions 3.9 5.3 7.3 7.8
Other Financial Liability 5.5 0.6 0.4 0.7
Other Long Term Liabilities 0.0 0.0 0.0 0.0
Lease Liability 0.0 0.0 0.0 0.0
Total non-current liabilities 178.79 148.99 104.10 74.04

Total liabilities 473.4 519.0 464.0 507.5

Net assets 367.8 489.6 605.4 761.2

EQUITY
Share capital 6.0 12.0 12.0 12.0
Reserves 260.8 355.3 470.6 590.2
Retained earnings 101.1 122.3 122.8 159.0
Total equity 367.8 489.6 605.4 761.2

Check 0 0 0 0

Debt schedule

Current 66.5 89.6 60.9 86.1

Non-current 144.5 189.3 134.2 144.0
Lease Liability-Current 0.0 0.0 0.0 0.0
Lease Liability-Non Current 0.0 0.0 0.0 0.0
Total Debt 211.0 278.9 195.1 230.1

Cash 4.5 2.2 3.5 3.1

Net Debt 206.5 276.6 191.6 227.0

Finance Expenses

Finance Expenses 18.5 27.0 15.0 8.6

as % of debt 11.0% 6.3% 4.0%

Finance Income

Finance Income 0.0 1.2 1.0 0.9

as % of cash 35.7% 34.8% 25.9%

Property, plant and equipments

Revenue 1,483.6 1,720.6 1,637.6 1,952.0

Cost of goods sold (ex-D&A) 605.5 660.8 695.2 836.2
Gross value
Opening bal 515.0 655.7 689.6 746.7
Additions 152.4 37.2 61.0 36.4
as % of revenue 10.3% 2.2% 3.7% 1.9%
Disposals (11.8) (3.3) (3.9) (1.3)
Effect of movements in foreign exchange 0.0 0.0 0.0 0.0
Others 0.0 0.0 0.0 0.0
Closing Bal 655.7 689.6 746.7 781.8

Accumulated dep
Opening bal (154.5) (188.8) (227.3) (266.9)
Depreciation (37.9) (41.0) (42.8) (45.6)
as % of avg assets 6.5% 6.1% 6.0% 6.0%
Others 3.6 2.5 3.1 0.5
Closing Bal (188.8) (227.3) (266.9) (312.0)

Net Book Amount 466.9 462.3 479.8 469.8

- - - -
Intangible assets
Gross value
Opening bal 10.6 12.9 82.2 84.2
Acquisition of Subsidiary 0.0 0.0 0.0 0.0
Additions 2.4 69.2 2.0 21.3
as % of revenue 0.2% 4.0% 0.1% 1.1%
Disposal 0.0 0.0 0.0 (2.3)

Closing Bal. 12.9 82.2 84.2 103.2

Accumulated Amortization
Opening bal (5.3) (7.3) (14.0) (22.5)
Amortization (2.0) (6.7) (8.7) (13.7)
as % of avg assets 16.6% 14.1% 10.5% 14.6%
Impairment (0.1) 0.0 0.0 (10.8)
Others 0.0 0.0 0.3 0.0
Closing Bal. (7.3) (14.0) (22.5) (47.0)
Net Book Amount 5.6 68.2 61.7 56.2
- - - -
Right of Use Assets
Gross Assets
Opening bal.
Additions
as % of revenue
Closing Bal.

Accumulated Dep.
Opening bal.
Depreciation
% of average assets
Closing Bal.

Net Book Value

Drivers

Receivable Days (Current) 20 23 27 36

Receivable Days (Non-Current) 0 0 0 0

Payable Days(current) 56 68 66 76

Payable Days(current) 0 0 0 0

Inventory 150 158 152 137

Other Current Assets 5.8 21.3 26.0 68.2

as % of Revenue 0.4% 1.2% 1.6% 3.5%

Other Current Liability 113.4 60.2 70.3 70.5

7.6% 3.5% 4.3% 3.6%

Working Capital as % Revenue 8.8% 13.6% 14.9% 16.9%

Terms of Trade 0.887 0.888 0.980 1.100

31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25
Y Y Y Y Y Y Y
Act Act Est Est Est Est Est

1.9 2.6 249.7 335.9 600.9 902.9 1,243.7

0.3 1.5 1.5 1.5 1.5 1.5 1.5
222.6 172.1 167.9 206.9 250.3 289.1 333.9
0.4 0.3 0.3 0.3 0.3 0.3 0.3
382.4 447.7 445.8 538.1 647.6 756.8 874.8
0.0 6.2 6.2 6.2 6.2 6.2 6.2
43.1 28.0 28.0 28.0 28.0 28.0 28.0
76.3 132.8 58.9 72.6 87.8 101.4 117.2
727.0 791.2 958.3 1,189.5 1,622.6 2,086.2 2,605.5

0.0 0.0 0.0 0.0 0.0 0.0 0.0

10.2 43.8 43.8 43.8 43.8 43.8 43.8
800.5 750.1 745.3 737.2 738.1 760.7 792.4
48.9 42.8 45.2 42.2 40.0 39.8 40.2
0.3 0.6 0.6 0.6 0.6 0.6 0.6
17.1 18.5 18.5 18.5 18.5 18.5 18.5
7.5 4.2 4.2 4.2 4.2 4.2 4.2
0.0 189.9 211.7 266.7 330.4 399.1 473.5
884.5 1,049.9 1,069.3 1,113.2 1,175.6 1,266.6 1,373.2

1,611.4 1,841.1 2,027.6 2,302.8 2,798.2 3,352.8 3,978.7

171.8 183.8 168.9 219.0 266.6 311.6 360.2

0.0 0.0 0.0 0.0 0.0 0.0 0.0
86.9 19.2 30.0 30.0 100.0 180.0 200.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
114.3 73.5 73.5 73.5 73.5 73.5 73.5
29.7 50.7 0.0 0.0 0.0 0.0 0.0
58.2 58.6 58.9 58.1 52.7 60.9 70.3
2.1 27.6 30.0 30.0 36.0 39.0 42.0
462.91 413.30 361.36 410.58 528.84 664.99 746.01

0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
34.4 24.8 24.8 24.8 24.8 24.8 24.8
 9.0 10.8 10.8 10.8 10.8 10.8 10.8
0.01 0.00 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 119.8 130.0 130.0 170.0 190.0 220.0
43.45 155.40 165.60 165.60 205.60 225.60 255.60

506.4 568.7 527.0 576.2 734.4 890.6 1,001.6

1,105.1 1,272.4 1,500.6 1,726.6 2,063.7 2,462.2 2,977.1

12.4 24.9 24.9 24.9 24.9 24.9 24.9

901.4 1,045.0 1,045.0 1,045.0 1,045.0 1,045.0 1,045.0
191.3 202.4 430.5 656.5 993.6 1,392.1 1,907.0
1,105.1 1,272.4 1,500.5 1,726.5 2,063.6 2,462.1 2,977.0

0 0 0 0 0 0 0

86.9 19.2 30.0 30.0 100.0 180.0 200.0

178.3 0.0 0.0 0.0 0.0 0.0 0.0
2.1 27.6 30.0 30.0 36.0 39.0 42.0
0.0 119.8 130.0 130.0 170.0 190.0 220.0
267.3 166.6 190.0 190.0 306.0 409.0 462.0

1.9 2.6 249.7 335.9 600.9 902.9 1,243.7

265.4 164.0 (59.7) (145.9) (294.9) (493.9) (781.7)

6.9 16.9 17.8 19.0 24.8 35.8 43.6

2.8% 7.8% 10.0% 10.0% 10.0% 10.0% 10.0%

0.7 0.4 0.1 5.0 6.7 12.0 18.1

27.2% 19.4% 2.0% 2.0% 2.0% 2.0% 2.0%

2,275.9 2,394.7 2,357.6 2,904.5 3,513.3 4,057.9 4,686.8

1,009.9 929.9 856.3 1,141.9 1,390.4 1,624.9 1,878.2
 781.8 1,165.4 1,223.8 1,294.5 1,352.6 1,422.9 1,504.0
387.3 64.1 70.7 58.1 70.3 81.2 93.7
17.0% 2.7% 3% 2.0% 2.0% 2.0% 2.0%
(3.8) (5.7) 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
1,165.4 1,223.8 1,294.5 1,352.6 1,422.9 1,504.0 1,597.8

(312.0) (364.9) (473.7) (549.2) (615.4) (684.8) (743.3)

(53.5) (108.7) (75.5) (66.2) (69.4) (58.5) (62.0)
5.5% 9.1% 6.0% 5.0% 5.0% 4.0% 4.0%
0.6 (0.1) 0.0 0.0 0.0 0.0 0.0
(364.9) (473.7) (549.2) (615.4) (684.8) (743.3) (805.4)

800.5 750.1 745.3 737.2 738.1 760.7 792.4

- - - - - - -

103.2 109.0 110.9 122.7 128.5 135.5 143.6

0.0 0.0 0.0 0.0 0.0 0.0 0.0
1.5 2.2 11.8 5.8 7.0 8.1 9.4
0.1% 0.1% 0.5% 0.2% 0.2% 0.2% 0.2%
4.3 (0.3) 0.0 0.0 0.0 0.0 0.0

109.0 110.9 122.7 128.5 135.5 143.6 153.0

(47.0) (60.1) (68.1) (77.5) (86.3) (95.5) (103.9)

(15.6) (8.9) (9.3) (8.8) (9.2) (8.4) (8.9)
14.7% 8.1% 8.0% 7.0% 7.0% 6.0% 6.0%
0.0 0.0 0.0 0.0 0.0 0.0 0.0
2.5 0.8 0.0 0.0 0.0 0.0 0.0
(60.1) (68.1) (77.5) (86.3) (95.5) (103.9) (112.8)
48.9 42.8 45.2 42.2 40.0 39.8 40.2
- - - - - - -

52.4 230.3 277.4 364.5 469.9 591.7

177.8 47.2 87.1 105.4 121.7 140.6
7% 2.00% 3.00% 3.00% 3.00% 3.00%
 52.4 230.3 277.4 364.5 469.9 591.7 732.3

(1.6) (40.3) (65.7) (97.8) (139.5) (192.6)

(38.7) (25.4) (32.1) (41.7) (53.1) (66.2)
27% 10.0% 10.0% 10.0% 10.0% 10.0%
(1.6) (40.3) (65.7) (97.8) (139.5) (192.6) (258.8)

50.9 189.9 211.7 266.7 330.4 399.1 473.5

36 26 26 26 26 26 26

0 0 0 0 0 0 0

62 72 72 70 70 70 70

0 0 0 0 0 0 0

138 176 190 172 170 170 170

76.3 132.8 58.9 72.6 87.8 101.4 117.2

3.4% 5.5% 2.5% 2.5% 2.5% 2.5% 2.5%

58.2 58.6 58.9 58.1 52.7 60.9 70.3

2.6% 2.4% 2.5% 2.0% 1.5% 1.5% 1.5%

19.8% 21.3% 18.9% 18.6% 19.0% 19.1% 19.1%

1.295 0.936 0.994 0.945 0.939 0.928 0.927

Relaxo Footwears Limited 31-Mar-15
P&L Y
(in INR Crores) Act

Profit Before Tax 142.6

Add item classified as investing activities:
Loss on disposal of property, plant and equipment

Add/(less) non-cash items:

Depreciation and amortisation 39.90
Finance Cost Including Interest on Lease Liability 18.5
Interest Income on FD 0.2
Dividend Income on Current Investments 0.0
Net Gain on sale of Current Investments 0.2
Net Unrealized gain on Foreign Currency 0.7
Share Baased Payments (0.3)
Profit / loss on Derivative Instruments 0.0
Write Down of Inventories 1.7
Bad Debts Written Off 0.2
Allowance for Doubtful Trade 0.3
Net Loss on Disposal Written Off 0.2
Net cash provided by operating activities before changes in assets and liabilities 204.2

Changes in assets and liabilities:

Loans to Employees 0.0
Security Deposits 0.0
Other Non-Current Assets 0.0
Trade Recievables (21.1)
Other Financial Assets 0.0
Other Current Assets (2.5)
Inventories (84.7)
Trade Payables 49.2
Other Financial Liabilities 0.0
Provisions 0.0
Other Current Liabilities 0.0
Total Working Capital (59.1)
Net Taxed Paid (37.6)
Net cash provided by operating activities 107

Cash flows from investing activities

Purchase of PPE , Capital WIP & Intangible Assets (131.3)
Proceeds from sale of PPE and Intangible assets 1.3
 Purchase / Redemption of Current Investments 0.0
Interest Income Received 0.2
Dividend Income Received 0.0
Purchase / Maturity of Bank Deposits held as margin money 0.0

Net cash used in investing activities (129.8)

Cash flows from financing activities

Proceeds From Equity Shares 0.0
Securities Premium received on Issues of Shares 0.0
Proceeds From Borrowing - Current 76.7
Repayment of Borrowings- Current (35.6)
Proceeds From Borrowing - Non Current 0.0
Repayment of Borrowings- Non Current (0.0)
Repayment of Principal Lease Liabilities 0.0
Dividend Paid (Including DDT) (3.5)
Finance Costs Including Interest on Lease Liabilities (16.4)

Net cash used in financing activities 21.1

Net increase/(decrease) in cash and cash equivalents (1.2)

Cash and cash equivalents at the beigining of The year 5.6
Changes in Cash and Cash Equivalent Under scheme of Amalgamation 0.0
Effect of exchange rate fluctuations on cash held 0.1
Cash and cash equivalents, net of overdrafts at 30 June 4.5

Free cash flow (FCF) (23.8)

31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-22
Y Y Y Y Y Y Y
Act Act Act Act Act Est Est

177.6 178.0 243.6 268.0 291.71 390.6 401.7

0.0 0.0

47.12 51.46 54.34 62.41 109.42 110.27 107.07

22.9 15.0 8.6 6.9 16.9 17.8 19.0
(0.3) (0.7) (0.6) (0.7) (0.4) 0.0 0.0
0.0 0.0 0.0 (1.2) 0.0 0.0 0.0
(4.4) 0.0 (0.5) (1.1) (1.1) 0.0 0.0
0.6 (9.9) (3.9) (1.8) (0.8) 0.0 0.0
(0.2) 1.3 4.1 4.7 2.9 0.0 0.0
(0.4) 8.6 0.3 2.5 (2.8) 0.0 0.0
0.0 0.0 0.0 0.0 2.9 0.0 0.0
0.0 0.0 0.3 0.0 0.0 0.0 0.0
0.7 0.7 0.7 0.6 1.9 0.0 0.0
0.3 0.4 0.6 1.2 1.1 0.0 0.0
243.93 244.99 307.5 341.6 421.9 518.7 527.8

0.0 (0.0) (0.1) 0.0 0.1 0.0 0.0

0.0 (0.8) (1.7) (0.9) (1.4) 0.0 0.0
0.0 (0.0) (0.0) 0.9 (1.2) 0.0 0.0
(33.4) (15.5) (69.8) (31.3) 51.4 4.1 (39.0)
0.0 (0.1) 0.2 (20.1) 18.4 0.0 0.0
0.0 (4.7) (42.2) (29.5) (56.8) 73.9 (13.7)
(37.2) (4.4) (23.7) (82.7) (68.2) 2.0 (92.3)
40.3 4.2 49.3 13.6 8.5 (14.9) 50.1
0.0 1.9 10.4 6.3 7.0 0.0 0.0
0.0 3.2 4.3 9.8 21.9 (50.7) 0.0
0.0 10.1 0.2 2.1 0.4 0.3 (0.8)
(30.2) (6.1) (73.2) (131.9) (19.8) 14.8 (95.7)
(54.3) (58.7) (80.1) (86.3) (83.1) (105.5) (100.4)
159 180 154 123 319 428 332

(134.8) (90.3) (109.0) (92.4) (116.1) (129.7) (151.0)

4.7 0.3 0.3 1.0 0.2 0.0 0.0
 (0.5) 0.0 0.5 32.1 1.1 0.0 0.0
0.3 0.7 0.5 0.7 0.4 0.0 0.0
0.0 0.0 0.0 1.2 0.0 0.0 0.0
0.1 (0.1) (0.7) 0.6 (1.3) 0.0 0.0

(130.3) (89.4) (108.4) (56.9) (115.7) (129.7) (151.0)

0.0 0.01 0.02 0.0 0.0 0.0 0.0

0.6 1.8 4.5 3.2 3.1 0.0 0.0
83.1 0.0 0.0 0.8 0.0 10.8 0.0
(86.1) (62.5) (21.7) 0.0 (67.8) 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
(0.0) 0.0 0.0 (42.4) (23.7) 0.0 0.0
0.0 0.0 0.0 0.0 (32.6) 0.0 0.0
(7.2) (8.7) (14.5) (21.8) (64.3) (57.0) (75.3)
(21.6) (20.2) (14.6) (8.1) (17.4) (5.2) (19.0)

(31.3) (89.5) (46.3) (68.2) (202.6) (51.4) (94.3)

(2.1) 1.3 (0.4) (1.68) 0.67 247.0 86.3

4.5 2.4 3.6 3.2 2.0 2.7 249.7
0.0 0.0 0.0 0.01 0.00 0.0 0.0
0.0 0.0 0.0 0.4 0.0 0.00 0.00
2.4 3.6 3.2 2.0 2.7 249.7 335.9

24.6 89.9 45.3 31.1 202.8 298.4 180.6

Source of
Funds
CFO 428.1
Debt 10.8

Application of
Funds Amount
CAPEX 129.7
Interest 17.8
 Dividends 57.0

Source of Fund
2% CFO
Debt

98%
31-Mar-23 31-Mar-24 31-Mar-25
Y Y Y
Est Est Est

599.4 708.4 915.3

0.0 0.0 0.0

120.35 119.99 137.13

24.8 35.8 43.6
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
744.5 864.2 1,096.0

0.0 0.0 0.0

0.0 0.0 0.0
0.0 0.0 0.0
(43.4) (38.8) (44.8)
0.0 0.0 0.0
(15.2) (13.6) (15.7)
(109.5) (109.2) (118.0)
47.7 45.0 48.6
0.0 0.0 0.0
0.0 0.0 0.0
(5.4) 8.2 9.4
(125.8) (108.5) (120.5)
(149.8) (177.1) (228.8)
469 579 747

(182.7) (211.0) (243.7)

0.0 0.0 0.0
 0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0

(182.7) (211.0) (243.7)

0.0 0.0 0.0

0.0 0.0 0.0
70.0 80.0 20.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
(112.4) (132.8) (171.6)
21.2 (12.8) (10.6)

(21.2) (65.6) (162.2)

265.0 302.0 340.8

335.9 600.9 902.9
0.0 0.0 0.0
0.00 0.00 0.00
600.9 902.9 1,243.7

286.2 367.6 503.0

Application of Funds

28% CAPEX
Interest
Dividends
63%
28% CAPEX
Interest
Dividends

9% 63%
Relaxo Footwears Limited
DCF 2021 2022
(in INR Crores) Annual Annual
Est Est

Revenue 2,357.6 2,904.5

Revenue Growth (YoY - %) 23.2%
EBIT 408.4 415.7
EBIT Margin 17.3% 14.3%
Less: Tax @ 25% 25% (102.1) (103.9)
EBIT after tax 306.3 311.8
Add: Depreciation & Amortization 110.3 107.1
Add: Changes in working capital 14.8 (95.7)
Less: Capex (129.7) (151.0)
Free cash flow to the firm (FCFF) 301.7 172.1

Time period (0.9) 0.1

PV Factor 1.1 1.0
Discounted FCFF (272.8) 16.5
Terminal Value 38,593.7
Discounted Terminal Value 23,212.3
Enterprise Value 33,629.0
Less: Net Debt 164.0
Implied Market Cap 33,465.0
Target Price (AUD) 1,347
Upside/(Downside) Potential 12.5%

Calculation of Riskfree Rate

India's 10 Year T Bill 5.95%

Default Spread 1.98%
Risk Free Rate 3.97%
Calculation of Beta ( Bottom Up Beta)

S.No. Name CMP Rs. ROCE % Debt / Eq

1 Bata India 1473.95 25.35 0.12

2 Mirza Internatio 50.2 11.68 0.44
3 Bhartiya Intl. 207.55 6.95 1.35
4 Liberty Shoes 137.5 9.32 0.69
5 Relaxo Footwear 1030.15 28.37 0.13

Average Debt to equity 0.65

Average Beta 0.73
Average Tax rate 33%
Unlevered Beta 0.51
Levered Beta 0.56
2023 2024 2025 2026 2027 2028
Annual Annual Annual Annual Annual Annual
Est Est Est Est Est Est

3,513.3 4,057.9 4,686.8 5,389.8 6,198.3 7,128.1

21.0% 15.5% 15.5% 15.0% 15.0% 15.0% Calculation of WACC
617.4 732.2 940.8 916.3 1,053.7 1,211.8
17.6% 18.0% 20.1% 17.0% 17.0% 17.0%
(154.4) (183.0) (235.2) (229.1) (263.4) (302.9) WACC
463.1 549.1 705.6 687.2 790.3 908.8 Interest Rate
120.4 120.0 137.1 154.0 170.9 187.8 Kd
(125.8) (108.5) (120.5) (130.5) (140.5) (150.5) Total Debt
(182.7) (211.0) (243.7) (273.7) (303.7) (333.7)
274.9 349.6 478.6 437.0 517.0 612.4 Rf
Expected Market Return
1.1 2.1 3.1 4.1 5.1 6.1 Market Risk Premium
0.9 0.8 0.8 0.7 0.7 0.6 Beta
301.3 732.8 1,481.5 1,789.9 2,634.4 3,733.1 Equity Premium
Ke
Number of shares (mn)
Valuation date 24-Feb-22 Current Price (INR)
First Forecasted Year end 31-Mar-21 Market Capitalization (Rs Crores)
WACC

Terminal Growth Rate

Beta Tax

-0.05 31%
1.12 30%
1.21 30%
0.65 39%
27%
on of WACC Sensitivity Table
Terminal Growth Rate
1,347.0 5% 6% Err:522 Err:522 Err:522
Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
8% Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
WACC

6% Err:522 Err:522 Err:522 Err:522 Err:522 Err:522

166.6 Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
Err:522 Err:522 Err:522 Err:522 Err:522 Err:522
4.0%
12.5%
8.5%
0.6
4.7%
8.7%
24.8
1,197.0
29,738.3
8.7%

7.0%
 Mirza Sreeleathers Khadim
Date BSE RELAXO BATA INDIA International Ltd Ltd India Ltd
FY-08 17287.310547 2.159757 81.617722 15.153367
FY-09 11403.25 1.498532 55.341518 8.324496
FY-10 17558.710938 15.533596 127.156937 13.208925
FY-11 19135.960938 13.80973 199.542877 20.141947
FY-12 17318.810547 15.990966 412.944458 16.725742
FY-13 19504.179688 29.252022 351.132599 19.083601
FY-14 22417.800781 74.928764 506.513397 26.350361
FY-15 27011.310547 180.47821 486.389954 78.685867
FY-16 25606.619141 241.06171 560.60083 99.102417
FY-17 29918.400391 244.32045 562.970947 101.952438
FY-18 35160.359375 354.11319 779.813171 132.161102 764.73755
FY-19 39031.550781 437.70557 1426.360107 52.566082 397.72208
FY-20 29468.490234 596.07434 1352.298462 41.650002 123.6 93.300003
FY-21 51246 878 1476.150024 51.400002 145.35 148.35001

Mirza Sreeleathers Khadim

RETURNS BSE-Sensex RELAXO BATA INDIA International Ltd Ltd India Ltd
14 YEAR RETURN 8.07% 53.59% 22.97% 9.12%
10 YEAR RETURN 11.5% 49.3% 13.6% 11.9%
5 YEAR RETURN 11.4% 29.2% 21.3% -12.8%
3 YEAR RETURN 9.5% 26.1% 1.2% -0.7% -28.0%
1 YEAR RETURN 73.9% 47.3% 9.2% 23.4% 17.6% 59.0%
Liberty
Shoes Ltd Super House Ltd
97.320213 21.513039
42.414036 18.151714
104.5785 45.597
91.049454 41.55397
96.036438 44.64859
90.506325 43.324089
172.07558 89.413368
239.85965 191.202789
174.89999 141.319336
188.85001 159.021545
229.7 135.722824
134.3 110.732689
104.35 74.076195
138.8 124.349998

Liberty
Shoes Ltd Super House Ltd
2.57% 13.35%
3.8% 10.8%
-6.0% -4.8%
1.1% 3.9%
33.0% 67.9%
 5 YEAR EBITDA
COMPANIES MARKET CAP P/E P/B ATIO MARGIN
Relaxo Footwears Ltd 21757.32 96.31 17.13 15.43%
Bata India Ltd 19009.22 57.26 9.95 18.17%
Mirza International Ltd 619.58 12.92 0.98 16.06%
Sreeleathers Ltd 347.55 12.7 1.13 23.57%
Khadim India Ltd 274.13 -8.56 1.15 9.36%
Liberty Shoes Ltd 236.52 21.61 1.28 8.28%
Super House Ltd 136.65 5.28 0.39 9.41%

STO
BSE-Sensex R
Sreeleathers Ltd K

53.59% 49.3%

22.97% 13.6%
13.35% 11.5% 11.9% 10.8%
8.07% 9.12%
2.57% 3.8%

14 YEAR RETURN 10 YEAR RETURN

TOP 10 FOOT WEAR

B B K Leathers Pvt. Ltd. 0.78
Drish Shoes Ltd. 0.8
Leayan Global Pvt. Ltd. 0.99
Superhouse Ltd. 1.13
Rahman Industries Ltd. 1.46
Sara Suole Pvt. Ltd. 1.99
Liberty Shoes Ltd. 2.15
Aqualite Industries Pvt. Ltd. 2.53
 Drish Shoes Ltd. 0.8
Leayan Global Pvt. Ltd. 0.99
Superhouse Ltd. 1.13
Rahman Industries Ltd. 1.46
Sara Suole Pvt. Ltd. 1.99
Liberty Shoes Ltd. 2.15
Aqualite Industries Pvt. Ltd. 2.53
Relaxo Footwears Ltd.
Bata India Ltd.

Companies That Have Lost Considerable Market Share

40
35
30
25
20
15
10
5
0
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
95- 96- 97- 98- 99- 00- 01- 02- 03- 04- 05- 06- 07- 08- 09- 10- 11- 12- 13- 14- 15- 16- 17- 18-
19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20

Bata India Ltd. Florind Shoes Pvt. Ltd.

Phoenix International Ltd. Phoenix Industries Ltd.

Many Companies tried entering into Footwear Industry but they have lost considerable market
share over the years . Even Big International Brands have failed to maintain market share

0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2

HHI Index is very low which shows that the market is highly competitive and over the years It has become mor
 HHI Index is very low which shows that the market is highly competitive and over the years It has become mor

REVENUE OF B
3500

3000

2500

2000

1500

1000

500

0
1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Bata

FOOTWEA
Produc

20.19921 26.36749
23.00957 23.07342 20.0301
20.45431 19.80505
18.92708 16.94494
16.21121
11.82904 13.33017

2011-12 2012-13 2013-14 2014-15

RELAXO VS BATA INDIA EBITDA MARGIN

0.35

0.3

0.25

0.2
 RELAXO VS BATA INDIA EBITDA MARGIN
0.35

0.3

0.25

0.2

0.15

0.1

0.05

0
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 202

EBITDA as % of Revenue of RELAXO EBITDA as % of Total Revenue of BATA INDIA

0.6

0.5

0.4

0.3

0.2

0.1

0
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Raw Materials as % of Revenue of RELAXO

Raw Materials as % of Total Revenue of BATA INDIA

0.12

0.1

0.08

0.06

0.04

0.02

0
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Net Income as % of Revenue of RELAXO Net Income as % of Total Revenue of BATA INDIA
 CASH
5 Y AVG NET PROFIT 5Y AVG LONG TERM DEBT CONVERSION INTEREST COVERAGE
5 YEAR AVG ROA MARGIN ROCE TO EQUITY CYCLE IN DAYS RATIO
12.79% 7.91% 17.59% 9.41% 129.22 16.00
11.46% 8.91% 16.49% 54.67% 108.56 4.79
7.58% 6.43% 12.52% 2.87% 216.38 2.41
7.58% 15.22% 7.92% 0.00% 48.76 245.31
4.57% 2.65% 10.95% 63.79% 102.35 -0.04
1.87% 1.50% 7.99% 1.19% 140.10 2.24
2.98% 2.99% 7.72% 5.72% 195.17 2.58

STOCK PRICE RETURN

BSE-Sensex RELAXO BATA INDIA Mirza International Ltd
Sreeleathers Ltd Khadim India Ltd Liberty Shoes Ltd Super House Ltd

% 29.2% 26.1%
21.3%
1.9% 10.8% 11.4% 9.5%
3.8% 1.2% 1.1% 3.9%
-6.0%
-4.8% -0.7%
-12.8%
-28.0%
AR RETURN 5 YEAR RETURN 3 YEAR RETURN

0 FOOT WEAR COMPANIES BY MARKET SHARE in 2020( %)

Column C

1.99
2.15
2.53
 1.99
2.15
2.53
8.1

hare Market Share Comparison between 2 Greatest

Player 18
40 16
35 14
30
12
25
20 10
15 8
10 6
5 4
5 16 17 18 19 0
15- 16- 17- 18- 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 2
20 20 20 20 -9 -9 -9 -9 -0 -0 -0 -0 -0 - 0 -0 - 0 - 0 - 0 - 1 - 1 - 1 - 1 - 1 - 1 -1 - 1 - 1 -1
995 996 997 998 999 000 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 0
1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
96 97 98 99 0
95- 96- 97- 98- 99-
19 19 19 19 19 20
Bata India Ltd. Relaxo Footwears Ltd.

siderable market Relaxo have consistently increased their market share currently they are almost at par Imports as a
arket share with Bata . But since it is a highly competitive industry maintaining profitability is a shows that e
challenge . There is low pricing power . Relaxo is ablo to increase market share on consumers fo
account of robust technology and cheap labour sign as Intern

Herfindahl Index

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

ver the years It has become more competitive

ver the years It has become more competitive

REVENUE OF BATA VS RELAXO In Rs Crore

03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

Bata India Ltd. Relaxo Footwears Ltd.

FOOTWEARS IN CRORE PAIRS

Production Import Export
32.52104

26.88832 26.91723 27.36212 27.92984

26.36749 26.12187 21.12531 24.56552 25.33654
20.0301
21.92995 22.38209
19.80505 20.83059
494

2014-15 2015-16 2016-17 2017-18 2018-19

GIN EFFECTIVE TAX RATE OF RELAXO VS BATA

0.4
0.35
0.3
0.25
0.2
GIN EFFECTIVE TAX RATE OF RELAXO VS BATA
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020
FY 2018 FY 2019 FY 2020
Taxes & Other Items as % of PBT of RELAXO
evenue of BATA INDIA Tax as % of PBT of BATA INDIA

0.045
0.04
0.035
0.03
0.025
0.02
0.015
0.01
0.005
0
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Power & Fuel Cost as % of Revenue of RELAXO

Power & Fuel Cost as % of Total Revenue of BATA INDIA

0.8

0.6

0.4

0.2

0
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

-0.2

-0.4
FY 2019 FY 2020
EPS Growth Rate EPS Growth rate of BATA INDIA
of BATA INDIA
 FREE
5 YEAR HISTORICAL CASHFLOW
EPS GROWTH YIELDS FII DII MF
16.26% 0.93% 3.67% 7.05% 7.05%
7.29% 2.61% 5.55% 26.08% 14.09%
-6.41% 25.62% 0.04% 0.04% 0.00%
27.75% 8.28% 3.16% 0.00% 0.00%
14.78% 0.04% 15.53% 10.84%
-8.27% 10.66% 0.00% 0.00% 0.00%
-0.03% 31.93% 0.00% 0.01% 0.00%

73.9%
67.9%
59.0%
47.3%
23.4% 33.0%
17.6%
9.2%
1.1% 3.9%

-28.0%
ETURN 1 YEAR RETURN

020( %)
 8.1
10.46

Share of Imports
18
16
14
12
10
8
6
4
2
0
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
95- 96- 97- 98- 99- 00- 01- 02- 03- 04- 05- 06- 07- 08- 09- 10- 11- 12- 13- 14- 15- 16- 17- 18-
19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20

Imports as a total percentage of market has increased at exponential pace. This

shows that existing Indian companies aren't able to meet brand aspiration of
consumers for which Indians are preffering foreign brands this again is a woorying
sign as International players can chip in to get the share of profitability

13-14 2014-15 2015-16 2016-17 2017-18 2018-19

-15 2015-16 2016-17 2017-18 2018-19 2019-20

27.36212 27.92984 27.20401

26.13532
24.23316
22.38209

2018-19 2019-20

A
A

Y 2019 FY 2020

FY 2019 FY 2020

FY 2020
Comparable Valuation

Valuation of Relaxo Footwears Ltd

Industry P/E 37.8

EPS of Relaxo 9.12
Relative Price of Relaxo on P/E 344.7

Industy EV/EBITDA 23.76

EBITDA 408.95
Enterprise Value on Relative basis 9716.652
Less: Net Debt -59.6682967198184
Market Value of Equity 9776.32029671982
Number of Outstanding Shares 24.844
Relative Price of Relaxo on EV/EBITDA 393.51

Industry Price to Sales 10.39

Sales of Relaxo 2394.69
Number of Outstanding Shares 24.844
Sales Per Share of Relaxo 96.39
Price of Relaxo on Price to Sales 1001
Key Ratios 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19
Y Y Y Y
Act Act Act Act

Per Share data

BV/share 40.8 49.5 63.5 44.5
EBIT/share 16.9 15.7 21.0 11.0
EBITDA/share 20.5 18.9 25.2 13.1
Basic EPS 10.0 10.0 13.4 7.1
Diluted EPS 10.0 10.0 13.4 7.1

Profitability & capital efficiency

Gross margin 58.9% 54.4% 54.4% 52.9%
EBITDA margin 14.3% 14.1% 15.5% 14.2%
EBIT margin 11.8% 11.7% 12.9% 12.0%
PBT margin 10.3% 10.9% 12.5% 11.8%
Net margin 7.0% 7.3% 8.3% 7.7%

ROA(%) 13.0% 11.5% 13.8% 12.2%

ROE(%) 28.1% 21.9% 23.6% 18.8%
ROCE (%) 34.3% 28.5% 32.5% 27.6%

Valuation metrics
Price (INR) 241.0 244.0 354.0 437.0
Share outstanding 12.1 12.3 12.1 24.9
Market Capitalization 2,916.1 2,989.0 4,283.4 10,890.0
Enterprise Value (EV) 3,192.7 3,180.6 4,510.4 11,155.4
PE (x) 24.1 24.4 26.5 61.9
P/BV (x) 5.9 4.9 5.6 9.8
Price/Sales (x) 0.1 0.1 0.2 0.2
EV/EBITDA (x) 13.0 13.8 14.9 34.4
EV/Sales (x) 1.9 1.9 2.3 4.9

Solvency & Leverage

EBITDA/Interest (x) 9.1 15.4 35.2 47.0
EBIT/Interest (x) 7.5 12.8 29.3 39.7
FFO/Interest (x) 158.3 179.8 145.7 104.4
Cash Realization Ratio 1.3 1.5 1.0 0.7
Asset Replacement Ratio 286.06% 175.53% 200.55% 148.07%
FCF/Debt (x) 0.1 0.5 0.2 0.1
 Debt /EBITDA (x) 1.1 0.8 0.8 0.8
Net debt/EBITDA (x) 112.7% 83.0% 75.1% 81.8%
Total Debt/Equity (%) 57.0% 32.2% 30.2% 24.2%
Net Debt/Equity (%) 2305.3% 1595.2% 1886.7% 2140.2%
Debt/Total Capital (%) 36.3% 24.4% 23.2% 19.5%
Current Ratio (x) 1.1 1.2 1.3 1.6
FCF yield (%) 0.8% 3.0% 1.1% 0.3%
Dividend Yield (%) 1.0% 1.1% 0.8% 0.8%

Du Point Analysis

PAT Margin 7.0% 7.3% 8.3% 7.7%

Asset Turnover 1.71 1.53 1.54 1.41
Leverage 2.06 1.77 1.67 1.46

Growth Ratios
Revenue Growth Rate 16% -5% 19% 17%
EBITDA Growth 22% -6% 31% 7%
PAT Growth 17% 0% 34% 9%
Operating Cash Growth 48% 13% -14% -20%
Free Cashflow Growth L to P 265% -50% -31%
31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25
Y Y Y Y Y Y
Est Est Est Est Est Est

51.4 60.7 69.8 83.4 99.5 120.4

12.5 16.5 16.8 25.0 29.6 38.0
16.5 21.0 21.1 29.8 34.5 43.6
9.1 11.5 12.2 18.2 21.5 27.8
9.1 11.5 12.2 18.1 21.4 27.7

56.6% 59.0% 57.0% 57.0% 57.0% 57.0%

17.1% 22.0% 18.0% 21.0% 21.0% 23.0%
12.9% 17.3% 14.3% 17.6% 18.0% 20.1%
12.2% 16.6% 13.8% 17.1% 17.5% 19.5%
9.4% 12.1% 10.4% 12.8% 13.1% 14.6%

13.1% 14.7% 13.9% 17.6% 17.3% 18.7%

19.0% 20.6% 18.7% 23.7% 23.5% 25.2%
23.9% 26.4% 23.4% 29.7% 29.5% 31.8%

596.0 878.0 1,140.0 1,140.0 1,140.0 1,140.0

24.9 24.8 24.8 24.8 24.8 24.8
14,834.4 21,813.0 28,322.2 28,322.2 28,322.2 28,322.2
15,118.3 21,883.4 28,306.2 28,197.2 28,018.2 27,760.4
65.5 76.3 93.8 62.9 53.2 41.2
11.6 14.5 16.3 13.7 11.5 9.5
0.2 0.4 0.4 0.3 0.3 0.2
37.0 42.2 54.1 38.2 32.9 25.8
6.3 9.3 9.7 8.0 6.9 5.9

24.2 29.1 27.5 29.7 23.8 24.8

18.3 22.9 21.9 24.9 20.5 21.6
317.7 428.9 326.6 463.8 575.5 743.9
1.4 1.5 1.1 1.0 1.1 1.1
106.10% 117.58% 141.07% 151.80% 175.85% 177.7%
1.2 1.6 1.0 0.9 0.9 1.1
 0.4 0.4 0.4 0.4 0.5 0.4
40.1% -11.5% -27.9% -40.0% -58.0% -72.5%
13.1% 12.7% 11.0% 14.8% 16.6% 15.5%
657.7% -239.2% -585.1% -1182.6% -1980.4% -3134.4%
11.6% 11.2% 9.9% 12.9% 14.2% 13.4%
1.9 2.7 2.9 3.1 3.1 3.5
1.4% 1.4% 0.6% 1.0% 1.3% 1.8%
0.3% 0.3% 0.3% 0.4% 0.5% 0.6%

Du Point
Criteria Not
Complied

9.4% 12.1% 10.4% 12.8% 13.1% 14.6%

1.30 1.16 1.26 1.26 1.21 1.18
1.45 1.35 1.33 1.36 1.36 1.34

5% -2% 23% 21% 16% 16%

26% 27% 1% 41% 16% 27%
29% 26% 6% 49% 18% 29%
158% 34% -23% 41% 23% 29%
553% 47% -39% 58% 28% 37%
Du Point Analysis 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21
ROE(%) 21.9% 23.6% 18.8% 19.0% 20.6%
PAT Margin 7.3% 8.3% 7.7% 9.4% 12.1%
Asset Turnover 1.53 1.54 1.41 1.30 1.16
Leverage 1.77 1.67 1.46 1.45 1.35
Summary Tables

Financial/ Valuation summary

FY17 FY18
Revenue (INR Crores) 1,637.6 1,952.0
Revenue Growth % -4.8% 19.2%
EBITDA (INR Crores) 230.9 302.1
EBIT Margin % 14.1% 15.5%
EBIT (INR Crores) 194.4 251.0
EBITDA Margin % 11.9% 12.9%
Net Profit (INR Crores) 120.0 161.1
Net Profit Margin % 7.3% 8.3%
BasicEPS (INR ) 10.0 13.4
EPS Growth (% YOY) -0.3% 34.1%
Diluted EPS (INR) 10.0 13.4
EPS Growth (% YOY) -0.2% 34.1%
Return on Equity (%) 21.9% 23.6%
Book Value per share (INR) 49.5 63.5
P/E (x) 24.4 26.5
P/B (x) 4.9 5.6
EV/ EBITDA (x) 13.8 14.9
FCF Yield (%) 3.0% 1.1%
Dividend Yield (%) 1.1% 0.8%

Consolidated Income Statement (INR Crores, except per share data)

FY17 FY18
Revenue 1,637.6 1,952.0
Cost of Sales - Raw Materials (746.7) (890.5)
Gross Profit 890.9 1,061.4
Operating Expense (ex D&A) (647.4) (755.8)
EBITDA 230.9 302.1
Depreciation & Amortisation (51.5) (54.3)
EBIT 192.1 251.4
Net Interest Expense / (Income) (14.0) (7.7)
Profit before taxation 178.0 243.6
Tax Expense (58.1) (82.6)
Net profit for the year 120.0 161.1
Basic EPS (INR) 10.0 13.4
Diluted EPS (INR) 10.0 13.4
DPS (INR) 2.7 3.0

Consolidated Balance Sheet (INR Crores)

 FY17 FY18

ASSETS
Cash and cash equivalents 3.5 3.1
Trade and other receivables 123.2 192.4
Other current assets 316.5 383.0
Total current assets 445.7 580.6

Property, plant and equipment 479.8 469.8

Intangible assets 61.7 56.2
Other non-current liabilities 78.1 153.5
Total non-current assets 623.6 688.1
Total assets 1,069.3 1,268.7
LIABILITIES
Trade and other payables 125.7 174.9
Loans and borrowings 60.9 86.1
Other current liabilities 173.3 172.5
Total current liabilities 359.9 433.5

Loans and borrowings 70.9 39.3

Lease Liability 0.0 0.0
Other non current liabilities 33.2 34.8
Total non-current liabilities 104.1 74.0
Total liabilities 464.0 507.5

Net assets 605.4 761.2

EQUITY
Share capital 12.0 12.0
Reserves 470.6 590.2
Retained earnings 122.8 159.0
Total equity 605.4 761.2

Consolidated Cash Flow (INR Crores)

FY17 FY18

Profit Before Tax 178.0 243.6

Add item classified as investing activities:
Loss on disposal of property, plant and equipment 0.0 0.0
Add/(less) non-cash items:
Depreciation and amortisation 51.5 54.3
Other Expenses (0.3) (0.5)
Net cash provided by operating activities before changes in assets and liabilities 245.0 307.5
Add Changes in assets and liabilities (6.1) (73.2)
Less : Taxes (58.7) (80.1)
Net cash provided by operating activities 180.2 154.3

Cash flows from investing activities

CAPEX (90.3) (109.0)
Proceeds from sale of Plant , equipment 0.3 0.3
Income from Investments 0.7 0.5
Others (0.1) (0.2)
Net cash used in investing activities (89.4) (108.4)

Cash flows from financing activities

Repayments of borrowings (62.5) (21.7)
Proceeds from borrowings 0.0 0.0
Proceeds from Equity 1.8 4.6
Other Financiang Cost/ Proceeds (20.2) (14.6)
Dividends paid (8.7) (14.5)
Net cash used in financing activities (89.5) (46.3)

Net increase/(decrease) in cash and cash equivalents 1.3 (0.4)

Cash and cash equivalents, net of overdrafts at 1 July 2.4 3.6
Effect of exchange rate fluctuations on cash held 0.0 0.0
Cash and cash equivalents, net of overdrafts at 30 June 3.6 3.2

Free cash flow (FCF) 89.9 45.3

Key Ratios
FY17 FY18
Profitability & Growth
Gross Margin % 54.4% 54.4%
EBITDA Margin % 14.1% 15.5%
EBIT Margin % 11.7% 12.9%
EBT Margin % 10.9% 12.5%

Net Margin % 7.3% 8.3%

Revenue growth % -4.8% 19.2%
Net Income Growth % -0.3% 34.3%
Basic EPS 10.0 13.4
Diluted EPS 10.0 13.4
DPS 2.7 3.0
Payout Ratio % 27.0% 22.4%
Return on Assets % 11.5% 13.8%
Return on Equity % 21.9% 23.6%
Return on Capital Employed % 28.5% 32.5%
Solvency
Net debt/equity % 16.0 18.9
Net interest cover (x) 12.8 29.3
Net debt/EBITDA 0.8 0.8

FCF/Debt 0.5 0.2

Debt/Total Capital 0.2 0.2
Current Ratio (x) 1.2 1.3
Valuation
P/E 24.4 26.5
EV/EBITDA 13.8 14.9
EV/Sales 1.9 2.3
FCF yield (%) 3.0% 1.1%
Dividend Yield (%) 1.1% 0.8%
Price/Sales 0.1 0.2
Price/Book 4.9 5.6
 FY19 FY20 FY21E FY22E FY23E FY24E
2,275.9 2,394.7 2,357.6 2,904.5 3,513.3 4,057.9
16.6% 5.2% -1.6% 23.2% 21.0% 15.5%
324.3 409.0 518.7 522.8 737.8 852.1
14.2% 17.1% 22.0% 18.0% 21.0% 21.0%
274.3 307.5 408.4 415.7 617.4 732.2
12.1% 12.8% 17.3% 14.3% 17.6% 18.0%
175.4 226.3 285.1 301.3 449.5 531.3
7.7% 9.4% 12.1% 10.4% 12.8% 13.1%
7.1 9.1 11.5 12.2 18.2 21.5
-47.2% 29.0% 26.4% 5.7% 49.2% 18.2%
7.1 9.1 11.5 12.2 18.1 21.4
-47.2% 28.9% 26.4% 5.7% 49.2% 18.2%
18.8% 19.0% 20.6% 18.7% 23.7% 23.5%
44.5 51.4 60.7 69.8 83.4 99.5
61.9 65.5 76.3 93.8 62.9 53.2
9.8 11.6 14.5 16.3 13.7 11.5
34.4 37.0 42.2 54.1 38.2 32.9
0.3% 1.4% 1.4% 0.6% 1.0% 1.3%
0.8% 0.3% 0.3% 0.3% 0.4% 0.5%

FY19 FY20 FY21E FY22E FY23E FY24E

2,275.9 2,394.7 2,357.6 2,904.5 3,513.3 4,057.9
(1,072.3) (1,039.3) (966.6) (1,248.9) (1,510.7) (1,744.9)
1,203.5 1,355.4 1,391.0 1,655.6 2,002.6 2,313.0
(866.9) (937.8) (872.3) (1,132.8) (1,299.9) (1,460.8)
324.3 409.0 518.7 522.8 737.8 852.1
(62.4) (109.4) (110.3) (107.1) (120.4) (120.0)
274.2 308.2 408.4 415.7 617.4 732.2
(6.2) (16.4) (17.8) (14.0) (18.1) (23.7)
268.0 291.7 390.6 401.7 599.4 708.4
(92.5) (65.5) (105.5) (100.4) (149.8) (177.1)
175.4 226.3 285.1 301.3 449.5 531.3
7.1 9.1 11.5 12.2 18.2 21.5
7.1 9.1 11.5 12.2 18.1 21.4
3.3 1.6 2.3 3.0 4.5 5.4
 FY19 FY20 FY21E FY22E FY23E FY24E

1.9 2.6 249.7 335.9 600.9 902.9

222.6 172.1 167.9 206.9 250.3 289.1
459.1 587.0 511.1 617.1 741.8 864.7
727.0 791.2 958.3 1,189.5 1,622.6 2,086.2

800.5 750.1 745.3 737.2 738.1 760.7

48.9 42.8 45.2 42.2 40.0 39.8
27.6 252.8 274.6 329.6 393.3 461.9
884.5 1,049.9 1,069.3 1,113.2 1,175.6 1,266.6
1,611.4 1,841.1 2,027.6 2,302.8 2,798.2 3,352.8

171.8 183.8 168.9 219.0 266.6 311.6

86.9 19.2 30.0 30.0 100.0 180.0
204.2 210.4 162.4 161.6 162.2 173.4
462.9 413.3 361.4 410.6 528.8 665.0

0.0 0.0 0.0 0.0 0.0 0.0

0.0 119.8 130.0 130.0 170.0 190.0
43.5 155.4 165.6 165.6 205.6 225.6
43.5 155.4 165.6 165.6 205.6 225.6
506.4 568.7 527.0 576.2 734.4 890.6

1,105.1 1,272.4 1,500.6 1,726.6 2,063.7 2,462.2

12.4 24.9 24.9 24.9 24.9 24.9

901.4 1,045.0 1,045.0 1,045.0 1,045.0 1,045.0
191.3 202.4 430.5 656.5 993.6 1,392.1
1,105.1 1,272.4 1,500.5 1,726.5 2,063.6 2,462.1

FY19 FY20 FY21E FY22E FY23E FY24E

268.0 291.7 390.6 401.7 599.4 708.4

0.0 0.0 0.0 0.0 0.0 0.0

62.4 109.4 110.3 107.1 120.4 120.0

(1.6) (0.4) 0.0 19.0 24.8 35.8
341.6 421.9 518.7 527.8 744.5 864.2
(131.9) (19.8) 14.8 (95.7) (125.8) (108.5)
(86.3) (83.1) (105.5) (100.4) (149.8) (177.1)
123.5 318.9 428.1 331.6 468.9 578.6

(92.4) (116.1) (129.7) (151.0) (182.7) (211.0)

1.0 0.2 0.0 0.0 0.0 0.0
1.8 0.4 0.0 0.0 0.0 0.0
32.7 (0.2) 0.0 0.0 0.0 0.0
(56.9) (115.7) (129.7) (151.0) (182.7) (211.0)

(42.4) (124.0) 0.0 0.0 0.0 0.0

0.8 0.0 10.8 0.0 70.0 80.0
3.2 3.2 0.0 0.0 0.0 0.0
(8.1) (17.4) (5.2) (19.0) 21.2 (12.8)
(21.8) (64.3) (57.0) (75.3) (112.4) (132.8)
(68.2) (202.6) (51.4) (94.3) (21.2) (65.6)

(1.7) 0.7 247.0 86.3 265.0 302.0

3.2 2.0 2.7 249.7 335.9 600.9
0.0 0.0 0.0 0.0 0.0 0.0
2.0 2.7 249.7 335.9 600.9 902.9

31.1 202.8 298.4 180.6 286.2 367.6

FY19 FY20 FY21E FY22E FY23 FY24E

52.9% 56.6% 59.0% 57.0% 57.0% 57.0%

14.2% 17.1% 22.0% 18.0% 21.0% 21.0%
12.0% 12.9% 17.3% 14.3% 17.6% 18.0%
11.8% 12.2% 16.6% 13.8% 17.1% 17.5%

7.7% 9.4% 12.1% 10.4% 12.8% 13.1%

16.6% 5.2% -1.6% 23.2% 21.0% 15.5%
8.9% 29.0% 26.0% 5.7% 49.2% 18.2%
7.1 9.1 11.5 12.2 18.2 21.5
7.1 9.1 11.5 12.2 18.1 21.4
3.3 1.6 2.3 3.0 4.5 5.4
46.7% 17.5% 20.0% 25.0% 25.0% 25.0%
12.2% 13.1% 14.7% 13.9% 17.6% 17.3%
18.8% 19.0% 20.6% 18.7% 23.7% 23.5%
27.6% 23.9% 26.4% 23.4% 29.7% 29.5%

21.4 6.6 (2.4) (5.9) (11.8) (19.8)

39.7 18.3 22.9 21.9 24.9 20.5
0.8 0.4 (0.1) (0.3) (0.4) (0.6)

0.1 1.2 1.6 1.0 0.9 0.9

0.2 0.1 0.1 0.1 0.1 0.1
1.6 1.9 2.7 2.9 3.1 3.1

61.9 65.5 76.3 93.8 62.9 53.2

34.4 37.0 42.2 54.1 38.2 32.9
4.9 6.3 9.3 9.7 8.0 6.9
0.3% 1.4% 1.4% 0.6% 1.0% 1.3%
0.8% 0.3% 0.3% 0.3% 0.4% 0.5%
0.2 0.2 0.4 0.4 0.3 0.3
9.8 11.6 14.5 16.3 13.7 11.5
Key Financials FY22E FY23E
Revenue 3,044.8 3,772.5
EBITDA 548.1 679.0
Net profit for the year 280.7 353.9
Basic EPS (INR) 11.3 14.3
Return on Equity (%) 18.8% 21.6%
ROCE (%) 17.7% 20.4%
P/E (x) 100.7 79.8
EV/ EBITDA (x) 52.2 42.3

FY22E FY23E
Revenue 2,904.5 3,513.3
Cost of Sales - Raw Materials (1,248.9) (1,510.7)
Gross Profit 1,655.6 2,002.6
Operating Expense (ex D&A) (1,132.8) (1,299.9)
EBITDA 522.8 737.8
Depreciation & Amortisation (122.7) (139.2)
EBIT 400.1 598.6
Net Interest Expense / (Income) (18.3) (24.3)
Profit before taxation 381.8 574.4
Tax Expense (95.5) (143.6)
Net profit for the year 286.4 430.8
Basic EPS (INR) 11.6 17.4
Diluted EPS (INR) 11.6 17.4
DPS (INR) 5.8 10.5

Consolidated Balance Sheet (INR Crores) FY22E FY23E

ASSETS
Cash and cash equivalents 26.1 110.7
Trade and other receivables 206.9 250.3
Other current assets 609.8 733.1
Total current assets 872.4 1,123.6

Property, plant and equipment 780.6 779.1

Intangible assets 42.2 40.0
Other non-current liabilities 457.4 539.7
Total non-current assets 1,284.4 1,363.1
Total assets 2,156.8 2,486.7
LIABILITIES
Trade and other payables 216.0 263.0
Loans and borrowings 30.0 100.0
Other current liabilities 161.6 162.2
Total current liabilities 407.6 525.2

Loans and borrowings 0.0 0.0

Lease Liability 130.0 170.0
Other non current liabilities 165.6 205.6
Total non-current liabilities 165.6 205.6
Total liabilities 573.2 730.8

Net assets 1,584 1,756

EQUITY
Share capital 24.9 24.9
Reserves 1,045.0 1,045.0
Retained earnings 513.5 685.8
Total equity 1,584 1,755.8
Consolidated Cash Flow (INR Crores) FY22E FY23E

Profit Before Tax 382.9 576.9

Add item classified as investing activities:
Loss on disposal of property, plant and equipm 0.0 0.0
Add/(less) non-cash items:
Depreciation and amortisation 122.7 139.2
Other Expenses 19.0 24.8
Net cash provided by operating activities befor 524.6 740.9
Add Changes in assets and liabilities (93.7) (125.0)
Less : Taxes (95.7) (144.2)
Net cash provided by operating activities 335.1 471.6

Cash flows from investing activities

CAPEX (180.1) (217.8)
Proceeds from sale of Plant , equipment 0.0 0.0
Income from Investments 0.0 0.0
Others 0.0 0.0
Net cash used in investing activities (180.1) (217.8)

Cash flows from financing activities

Repayments of borrowings 0.0 0.0
Proceeds from borrowings 0.0 70.0
Proceeds from Equity 0.0 0.0
Other Financiang Cost/ Proceeds (19.0) 21.2
Dividends paid (71.8) (108.2)
Net cash used in financing activities (90.8) (17.0)

Net increase/(decrease) in cash and cash equivale 64.2 236.8

Cash and cash equivalents, net of overdrafts at 90.0 154.3
Effect of exchange rate fluctuations on cash hel 0.0 0.0
Cash and cash equivalents, net of overdrafts a 154.3 391.1

Key Ratios FY22E FY23E

Per Share data
BV/share 69.2 82.3
EBIT/share 16.2 24.2
EBITDA/share 21.1 29.8
Basic EPS 11.6 17.5

Profitability Ratios
Gross margin 57.0% 57.0%
 EBITDA margin 18.0% 21.0%
EBIT margin 13.8% 17.0%
PBT margin 13.2% 16.4%
Net margin 9.9% 12.3%

Key Ratios FY22E FY23E

Capital Effiiciency
ROA(%) 13.3% 17.1%
ROE(%) 17.9% 23.1%
ROCE (%) 22.6% 29.1%
a
Solvency & Leverage
EBITDA/Interest (x) 27.5 29.7
EBIT/Interest (x) 21.1 24.1
FFO/Interest (x) 330.2 466.6
Cash Realization Ratio 1.2 1.1
FCF/Debt (x) 0.8 0.8
Debt /EBITDA (x) 0.4 0.4
Total Debt/Equity (%) 11% 15%
 FY24E
4,555.3
819.9
456.5
18.5
25.5%
24.1%
61.9
35.2

FY24E
4,057.9
(1,744.9)
2,313.0
(1,460.8)
852.1
(142.1)
710.0
(33.5)
676.5
(169.1)
507.4
20.5
20.5
13.3

FY24E

163.5
289.1
854.4
1,336.5

799.8
39.8
628.7
1,472.5
2,809.0

307.4
180.0
173.4
660.7

0.0
190.0
214.8
214.8
875.5

1,933

24.9
1,045.0
863.4
1,933
FY24E

682.1

0.0

142.1
35.8
860.0
(118.4)
(170.5)
571.1

(251.6)
0.0
0.0
0.0
(251.6)

0.0
80.0
0.0
(12.8)
(127.9)
(60.6)

258.8
391.1
0.0
650.0

FY24E

97.8
28.7
34.5
20.7

57.0%
21.0%
17.5%
16.8%
12.6%

FY24E

16.9%
23.0%
29.1%

23.8
19.9
567.8
1.1
0.8
0.5
17%
Charts

Financial Data Charts

FY17 FY18 FY19 FY20 FY21E FY22E

Revenue 1,637.6 1,952.0 2,275.9 2,394.7 2,357.6 2,904.5
Revenue growth (RHS) -4.8% 19.2% 16.6% 5.2% -1.6% 23.2%
EBITDA (reported) 230.9 302.1 324.3 409.0 518.7 522.8
EBITDA margin 14.1% 15.5% 14.2% 17.1% 22.0% 18.0%
EBIT (reported) 194.4 251.0 274.3 307.5 408.4 415.7
EBIT margin 11.9% 12.9% 12.1% 12.8% 17.3% 14.3%
Net Profit (reported) 120.0 161.1 175.4 226.3 285.1 301.3
Net margin 7.3% 8.3% 7.7% 9.4% 12.1% 10.4%
Basic EPS (reported) 10.0 13.4 7.1 9.1 11.5 12.2
EPS growth (RHS) -0.3% 34.1% -47.2% 29.0% 26.4% 5.7%
Diluted EPS (reported) 10.0 13.4 7.1 9.1 11.5 12.2
EPS growth (RHS) -0.2% 34.1% -47.2% 28.9% 26.4% 5.7%
ROA 11.5% 13.8% 12.2% 13.1% 14.7% 13.9%
ROE 21.9% 23.6% 18.8% 19.0% 20.6% 18.7%
ROCE 28.5% 32.5% 27.6% 23.9% 26.4% 23.4%
FCF/Debt (x) 46% 20% 12% 122% 157% 95%
Net debt/EBITDA (x) 83.0% 75.1% 81.8% 40.1% -11.5% -27.9%
FCF yield 3.0% 1.1% 0.3% 1.4% 1.4% 0.6%

Revenue analysis EBIDTA A

4,000 25.0% 800
3,500 20.0% 700
3,000 15.0% 600
2,500 500
INR Crores

INR Crores

10.0%
2,000 400
5.0%
1,500 300
1,000 0.0% 200
500 -5.0% 100
0 -10.0% 0
FY17 FY18 FY19 FY20 FY21E FY22E FY23E FY17 FY18 FY19 FY

Revenue Revenue growth (RHS) EBITDA (reported)

Net Profit Analysis Basic EPS A

500 14.0% 20
450 18
12.0%
400 16
10.0%
 Net Profit Analysis Basic EPS A
500 14.0% 20
450 18
12.0%
400 16
350 10.0% 14
300 12
INR Crores

INR Crores
8.0%
250 10
200 6.0% 8
150 4.0% 6
100 4
2.0%
50 2
0 0.0% 0
FY17 FY18 FY19 FY20 FY21E FY22E FY23E FY17 FY18 FY19 FY

Net Profit (reported) Net margin Basic EPS (reported)

ROA Analysis ROE An

19.0% 26.0%
18.0% 24.0%
17.0%
22.0%
16.0%
20.0%
15.0%
18.0%
14.0%
16.0%
13.0%
14.0%
12.0%
11.0% 12.0%

10.0% 10.0%
FY17 FY18 FY19 FY20 FY21E FY22E FY23E FY17 FY18 FY19 F

FCF/ DEBT Analysis FCF/ Net Debt

180% 100.0%
160% 80.0%
140%
60.0%
120%
40.0%
100%
20.0%
80%

60% 0.0%
FY17 FY18 FY19 FY
40% -20.0%
20% -40.0%
0%
FY17 FY18 FY19 FY20 FY21E FY22E FY23E -60.0%
 Margin An
25.0%

20.0%

15.0%

10.0%

5.0%

0.0%
FY17 FY18 FY19 FY

EBITDA margin EBIT

 FY23E
3,513.3
21.0%
737.8
21.0%
617.4
17.6%
449.5
12.8%
18.2
49.2%
18.1
49.2%
17.6%
23.7%
29.7%
94%
-40.0%
1.0%

EBIDTA Analysis EBIT Analysis

0 25.0% 700
0 600
20.0%
0 500
0 15.0%
INR Crores

400
0
10.0% 300
0
0 200
5.0%
0 100
0 0.0% 0
FY17 FY18 FY19 FY20 FY21E FY22E FY23E FY17 FY18 FY19 FY20 FY21E FY22E FY2

EBITDA (reported) EBITDA margin EBIT (reported) EBIT margin

Basic EPS Analysis Diluted EPS Analysis

0 60.0% 20
8 18
6 40.0% 16
 Basic EPS Analysis Diluted EPS Analysis
0 60.0% 20
8 18
6 40.0% 16
4 20.0% 14
2 12

INR Crores
0 0.0% 10
8 8
6 -20.0% 6
4 -40.0% 4
2 2
0 -60.0% 0
FY17 FY18 FY19 FY20 FY21E FY22E FY23E FY17 FY18 FY19 FY20 FY21E FY22E FY23

Basic EPS (reported) EPS growth (RHS) Diluted EPS (reported) EPS growth (RHS)

ROE Analysis ROCE Analysis

35.0%

30.0%

25.0%

20.0%

15.0%

10.0%
FY17 FY18 FY19 FY20 FY21E FY22E FY23E FY17 FY18 FY19 FY20 FY21E FY22E

FCF/ Net Debt Analysis FCF Yield Analysis

3.5%

3.0%

2.5%

2.0%

1.5%

17 FY18 FY19 FY20 FY21E FY22E FY23E

1.0%

0.5%

0.0%
FY17 FY18 FY19 FY20 FY21E FY22E
 Margin Analysis

17 FY18 FY19 FY20 FY21E FY22E FY23E

EBITDA margin EBIT margin Net margin

Analysis
20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
FY20 FY21E FY22E FY23E

d) EBIT margin

PS Analysis
60.0%

40.0%
PS Analysis
60.0%

40.0%

20.0%

0.0%

-20.0%

-40.0%

-60.0%
FY20 FY21E FY22E FY23E

ed) EPS growth (RHS)

Analysis

FY20 FY21E FY22E FY23E

d Analysis

FY20 FY21E FY22E FY23E

Results Review & Preview

Results Review Table - Full Year Analysis

FY21A FY20 YoY FY21E Act vs. Est Cons Est.

Revenue 2,357.6 2,394.7 -1.6% 2,334.7 1.0%

Cost of goods sold (966.6) (1,039.3) -7.0% (957.2) 1.0%
Gross Profit 1,391.0 1,355.4 2.6% 1,377.5 1.0%

Operating Expenses (895.9) (962.2) -6.9% (887.2) 1.0%

Other Income 23.6 15.8 49.3% 23.3 1.0%

EBIDTA 518.7 409.0 26.8% 513.6 1.0%

Depreciation and Amortization (110.3) (109.4) 0.8% (148.7) -25.8%
Other Income 0.0 8.6 0.0
EBIT 408.4 308.2 32.5% 365.0 11.9%
Finance income - interest 0.1 0.4 -88.1% 0.1 0.0%
Finance expense - interest (17.8) (16.9) 5.7% (17.8) 0.0%

Profit before Income Tax 390.6 291.7 33.9% 347.2 12.5%

Income Tax Expenses (105.5) (65.5) 61.1% (93.7) 12.5%
Tax Rate % 27.0% 22.4% 20.3% 27.0% 0.0%

Net Profit 285.1 226.3 26.0% 253.5 12.5%

Earnings revisions
A$mn FY20A FY21E
Old New % chg Old New % chg
Revenue 2,394.7 #DIV/0! 2,357.6 #DIV/0!
EBIDTA 409.0 #DIV/0! 518.7 #DIV/0!
EBIT 308.2 #DIV/0! 408.4 #DIV/0!
Net Profit 226.3 #DIV/0! 285.1 #DIV/0!
EPS 9.1 #DIV/0! 11.5 #DIV/0!
 Results Preview Table - Full Year A
Act vs Cons. FY21E

Revenue 2,357.6
Cost of goods sold (966.6)
Gross Profit 1,391.0

Operating Expenses (895.9)

Other Income 23.6

EBIDTA 518.7
Depreciation and Amortization (110.3)
Other Income 0.0
EBIT 408.4
Finance income - interest 0.1
Finance expense - interest (17.8)

Profit before Income Tax 390.6

Income Tax Expenses (105.5)
Tax Rate % 27.0%

Net Profit 285.1

FY22E
Old New % chg
2,904.5 #DIV/0!
522.8 #DIV/0!
415.7 #DIV/0!
301.3 #DIV/0!
12.2 #DIV/0!
Results Preview Table - Full Year Analysis
FY20A YoY Cons Est. Our est vs Cons.

2,394.7 -1.6%
(1,039.3) -7.0%
1,355.4 2.6%

(962.2) -6.9%
15.8 49.3%

409.0 26.8%
(109.4) 0.8%
8.6
308.2 32.5%
0.4 -88.1%
(16.9) 5.7%

291.7 33.9%
(65.5) 61.1%
22.4% 20.3%

226.3 26.0%
Preliminary checks on the financial model

Model Mechanics

Timing

Integrated Financial Statements

Sensitivity Analysis
Company Name: Marsden maritime Holdings Limited (MMH)
Financial model File name: Marsden Maritime Holdings Limited (MMH) Financial Model
Updated on: 11/07/2020

► Model uses a consistent color scheme; Hardcoded Numbers - Blue; Formula - Black
► There are no errors in the model (worksheets and named ranges)
► There are no links to external files
► Inputs are separated from Calculations and Results
► Uniform column structure across all worksheets
► The units of measurement of each element in the financial model are clearly defined
► Use of unique formulas across rows
► Rows for error checks included
► There are no circularities in the model
► Model include output calculations such as financial statements ratios and valuation calculations
► Model include a summary sheet containing key model inputs and outputs and charts
► There are no hidden or password protected sheets or macros

► Key dates like financial opening and close date are captured
► Years of financial projections = 5

► The financial model contains the 3 financial statements: Cash flow, Income and Balance sheet
► Does the balance sheet balances

► Sensitivitiy table is built into the DCF sheet

For yes enter 1
For no enter 0
No. of issues 17
No. of issues 17
% of correcte 100%

Check Comment

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