Operationally the fourth quarter of FY16 for Relaxo Footwear was subdued on back of wage hikes in Haryana. Employee benefit costs went up 19.6 percent at Rs 45.7 crore.
However, the year as a whole was good with revenues up 15.7 percent at Rs 1713 crore versus Rs 1481 crore and EBITDA margins up at 14.1 percent versus 13.6 percent year-on-year (YoY). YoY net profit, too, was up 16.8 percent at Rs 120.3 crore versus Rs 103 crore.
Talking about the outlook for the company going forward, Ramesh Kumar Dua, Managing Director, said they are aiming for a double-digit growth in the next quarter, with focus on sales transformation and better connection with retailers.
He said, ecommerce is a small market, while distribution network is a major one for them.
The company, he said, would also look at bringing in efficiencies into the entire value-chain and increase prices, which could mitigate the impact of wage hikes.
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