Assumptions

Particulars/Year Comment FY 14-15 A FY 15-16 A

Revenue Model
Basic Revenue Model (not used)
Year on Year (YOY) revenue Growth rate Explicit 15.7%
Top Down Approach (Not Used)
YOY Revenue Growth listed footwear universe Explicit 9.71%
Market Share / Revenue of Listed universe in footwear
Relaxo Revenue from Operations (Net of Excise) 28% 29%
Growth in market share over the period of 5 years 2.5%
Bottom Up Approach
YOY Growth in volume data (Qty) Chosen Scenario 1 10.35%
YOY growth in average price realisation Chosen Scenario 1 4.83%
Cost Model
Method 1 (Not used)
Cost of material consumed/ Revenue from operations Explicit 43.59% 41.22%
Method 2 (USED)
Cost of Material Consumed per unit (X) Explicit 52.561842 52.106273
Other Manufacturing Cost
Other Manufacturing Cost/ Revenue from Operations Explicit 11.4% 11.2%
Employee Benefits Expense
Method 1 (USED)
Employee benefit expenses/ Revenue from Operations Explicit 9.1% 9.4%
Method 2 (Not Used)
YOY Growth in volume per employee per yearConstant Average, except for FY 20-21 2.20%
YOY Growth in Average Cost per employee Explcit 10.76%
Selling and Distribution Expenses
Selling and Distribution Expenses/Revenue from operati Explicit 14.75% 15.64%
Cost of Repairs
Cost of repairs/ Revenue from operations Constant Average 1.34% 1.47%
Rent
YOY additional to EBO's under COCO Model 43
Rent expense per EBO Constant Avgerage 0.16 0.15
Legal and Professional Fees/ Revenue from Net Operations
Legal and Professional Fees/ Revenue from Net Operati Explcit 1.94% 2.20%
Other expenses/ Net Revenue from Operations Constant Avgerage 2.07% 2.46%
Working Capital Schedule
Number of Days in Inventory Explicit 140.63 147.77
Number of days in Receivables Explicit 20.6184 23.0216
Number of days of Payables Explicit 60.100198
Capex Scheudule
Freehold Land
Net Additions during the year (Capex) Explicit 0 -0.141
Leasehold Land
Net Additions during the year (Capex) Explicit 47.6942 0.2324
Estimated useful life (in number of years) Explicit 2220.8458 61.089467
Buildings
Estimated useful life (in number of years) Explcit 33.097844 31.409869
 Plant and Machinery
Estimated useful life (in number of years) Explcit 24.016706 18.483095
Other Tangible Assets
Estimated useful life (in number of years) Explcit 12.90034 9.9362635
Installed Capacity utilization rate Explicit 80.0% 80.0%
ConstantCombined
Average ofGB
FYof14-15,
Building,
15-16Plant
andand
16-17.
Machinery
FY 17-18and
andother
18-19 have been ignored
37.046399
due to Change
35.586946
in AS and Acquision transacti
Incremental Capex for Maintainance (Based on Depreciat Explicit
Intangible Assets and Inatngibles under development
Net annual changes to intangible asset (Amortisation)
Constant average of FY 16-17A, 17-18A and
0 18-19A62.5319
Effective Tax rate 27.76% 32.27%
Dividend Schedule
Dividend payout ratio 5.82% 5.99%
Dividend
Government
Distribution
of India
tax rate
, replaced Dividend Distribution tax regime with. Taxablity
20.36% in the
20.36%
hands of Individual from FY20-
Payout ratio (including Dividend distribution tax) 7.01% 7.21%

Debt Schedule
Effective finance cost 10.85%

Valuation Sheet
Terminal Trailing PE Multiple 65
Cost of Equity 15%
CAPM Model (not used)
10 year G Sec India (As on June 21st, 2020) 5.80%
Beta (reuteres Database) 0.9
Equity risk Premium (Explicit) 9.49%
Cost of Equity 14.34100%
FY 16-17 A FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E

1.6% 12.5% 17.1% 12.0% 2.0% 20.0% 12.0% 12.0%

3.95% 9.98% 13.37% 8% 0% 20% 5% 5%

28% 29% 30% 30% 31% 31% 32% 32%

-0.66% 16.94% 16.84% -2.7% -12.0% 35.0% 3.0% 11.0%

2.25% -3.82% 0.25% 8.3% 0.0% 8.0% 8.0% 6.0%
100

41.66% 44.97% 46.43% 45.00% 42.00% 42.00% 44.00% 44.00%

53.855126 55.904066 57.8646 60.00 60 62 64 66

11.5% 11.7% 12.9% 12.90% 15.00% 13.50% 11.74% 11.74%

9.9% 10.9% 11.3% 11.5% 10.0% 11.5% 11.5% 11.5%

2.83% -1.06% 7.20% 2.79% 0.00% 2.79% 2.79% 2.79%

10.84% 5.18% 10.86% 10.75% 3.50% 10.75% 10.75% 10.75%

14.45% 8.62% 7.68% 7.50% 8.00% 7.50% 7.50% 7.50%

1.28% 1.16% 1.14% 1.28% 1.28% 1.28% 1.28% 1.28%

20 30 35 20 0 5 20 30
0.16 0.16 0.15 0.16 0.1572891 0.1572891 0.1572891 0.1572891

2.19% 2.21% 1.61% 1.61% 1.00% 1.61% 1.61% 1.61%

2.39% 2.45% 2.53% 2.38% 2.38% 2.38% 2.38% 2.38%

146.13 130.22 137.73 140.00 170.00 150.00 140.00 140.00

25.9530 35.8767 31.3058 31.00 60.00 31.00 31.00 31.00
62.914129 70.645161 60.507971 60.00 60.00 60.00 60.00 60.00

0 0 0 0.00 0.00 0.00 0.00 0.00

0 0 0 0.00 0.00 0.00 0.00 0.00

95.589286 98.490566 100.38462 99.00 99.00 99.00 99.00 99.00

36.045889 26.410628 30.481518 26.00 26.00 26.00 26.00 26.00

17.195075 11.460025 14.706019 11.50 11.50 11.50 11.50 11.50

11.173536 5.6275465 6.8905411 5.50 5.50 5.50 5.50 5.50

80.0% 80.0% 80.0% 70.0% 80.0% 75.0% 80.0% 85.0%
38.959705 23.974079 31.584992 37.20 37.20 37.20 37.20 37.20
70.00 70.00 70.00 70.00 70.00

-6.4249 -5.54 -7.27 -6.41 -6.41 -6.41 -6.41 -6.41

32.20% 33.88% 34.53% 27.00% 27.00% 27.00% 27.00% 27.00%

9.77% 7.46% 10.29% 5.0% 0.00 12.40% 12.40% 12.40%

20.40% 20.40% 20.55% 21% 0.00 0.00 0.00 0.00
11.76% 8.98% 12.40%

7.49% 6.57% 5.47% 7.00% 8.00% 8.00% 8.00% 8.50%

85 108
0.27058824
Scenario Analysis
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A

Chosen Scenario 1
Select 1 Best Case Scenario
Select 2 Base Case Scenario
Select 3 Worst Scenario

Valuation Per Share 1676.65

Key Assumptions
YOY Growth in volume data (Qty)
Best case Scenario
Base Case Scenario
Worst Case Scenario
YOY growth in average price realisation
Best case Scenario
Base Case Scenario
Worst Case Scenario
Terminal Trailing PE Multiple 65
Best case Scenario 65
Base Case Scenario 50
Worst Case Scenario 30
FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E

-12% 35% 3%
-12% 35% 3%
-15% 27% 2%
-17% 22% 1%
0% 8% 8%
0% 8% 8%
-3% 4% 6%
-5% 2% 4%
FY 23-24 E

11%
11%
10%
8%
6%
6%
2%
0%
Valuation Sheet
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A
Free Cash Flow to Equity 1.9 0.3 7.6
Terminal Trailing PE Multiple 65
Terminal Valuation
Cost of Equity 15%
Value of Equity (Today) (in Rs in crores) 41597.91932
Dates
Cash Flows
Number of shares outstanding at the end of the year (In cr 6.0 12.0 12.0
Value Per Share 1676.647585
FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E
9.2 -17.6 118.6 -0.3 316.8 474.4

22-Jul-24 31-Mar-21 31-Mar-22 31-Mar-23

0.00 -0.338 316.841 474.369
12.0 12.4 24.81 24.81 24.81 24.81
FY 23-24 E
546.2

38325.84

31-Mar-24
38872.012
24.81
Capex Schedule (INR in Crores)
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A
Freehold Land
Opening Gross Block 33.7507 33.7507 33.61
Acquired under the scheme of Amalgamation 0 0 0
Net Additions during the year (Capex) 0.0 -0.141 0.0
Opening Acumulated Depreciation 0.0 0.0 0.0
Depreciation Charged During the Year 0.0 0.0 0.0
Net Block 33.8 33.6 33.6
Leasehold Land
Opening Gross Block 5.6061 53.3003 53.53
Net Additions during the year (Capex) 47.6942 0.2324 0.0
Opening Acumulated Depreciation 0.12 0.144 1.02
Depreciation Charged During the Year 0.024 0.8763 0.56
Net Block 53.156 52.512 51.950
Estimated useful life (in number of years) 2220.8 61.1 95.6
Average Age of the Leasehold land (in number of years) 6.0 1.2 2.8
Remaining useful life 2214.8 59.9 92.8
Buildings
Opening Gross Block 130.0307 154.557 159.07
Net Additions during the year (Capex) 24.5 4.512 29.45
Acquired under the scheme of Amalgamation 0.0 0 0
Opening Acumulated Depreciation 17.4639 22.1336 27.2
Depreciation Charged During the Year 4.7 5.0643 5.23
Net Block 132.423 131.871 156.090
Estimated useful life (in number of years) 33.1 31.4 36.0
Average Age (in number of years) 4.7 5.4 6.2
Remaining useful life 28.4 26.0 29.8
Plant and Machinery
Opening Gross Block 191.2524 249.5648 259.67
Net Additions during the year (Capex) 58.3 10.1005 5.65
Acquired under the scheme of Amalgamation 0.0 0 0
Opening Acumulated Depreciation 69.9955 80.3868 94.44
Depreciation Charged During the Year 10.4 14.0488 15.43
Net Block 169.178 165.22970 155.450
Estimated useful life (in number of years) 24.0 18.5 17.2
Average Age (in number of years) 7.7 6.7 7.1
Remaining useful life 16.3 11.8 10.1
Other Tangible Assets Includes Leasehold Improvements , Moulds , Computers , Motor V
Opening Gross Block 154.3822 164.5 184.01
Net Additions during the year (Capex) 10.1 19.5 22.0
Acquired under the scheme of Amalgamation 0.0 0.0 0.0
Opening Acumulated Depreciation 66.9 86.1057 104.6
Depreciation Charged During the Year 12.8 18.5 18.4
One time direct charge to General reserve 6.5 0.0 0.0
Net Block 78.416 79.394 82.980
Estimated useful life (in number of years) 12.9 9.9 11.2
Average Age (in number of years) 6.2 5.6 6.7
Remaining useful life 6.7 4.3 4.5

Closing Net Block 466.9 462.6 480.1

Check 1.0 1.0 1.0

Summary - GB
Freehold Land GB 33.8 33.6 33.6
Leasehold Land GB 53.3 53.5 53.5
Buildings GB 154.6 159.1 188.5
Plant and Machinery GB 249.6 259.7 265.3
Other Tangible Assets GB 164.5 184.0 206.0
TOTAL 655.7 689.9 747.0
Total Manufacturing Capacity per annum in number of unit

Revenue Volume data (qty in crores) 12.2796 13.55 13.46

Installed Capacity utilization rate Assumed for en 80% 80% 80%
Total Installed Capacity per annum (in units crores) 15.3 16.9 16.9
Additions to installed capacity during the year (in unit , crores) 1.6 0.0
Combined GB of Building, Plant and Machinery and other tangible assets p 37.0 35.6 39.0
Incremental Capex for Maintainance (Based on Depreciation )
Summary - Capex
Buildings 24.5 4.5 29.5
Increment to Capital Work in Progress -21.9 26.7 33.9
Net Capex to Building 2.6 31.2 63.4
Plant and Machinery 58.3 10.1 5.7
Other Tangible Assets 10.1 19.5 22.0
TOTAL 71.1 60.8 91.0

Capex Allocation splitter

Net Capex to Building 37.87%
Plant and Machinery 35.96%
Other Tangible Assets 26.18%
Total 100.00%

Intangible Assets and Inatngibles under development

Intangible Assets and Inatngibles under development 5.62 68.15 61.73
Net annual changes to intangible asset (Amortisation) 62.5 -6.4
 FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E

33.61 33.61 162.82 162.82 162.82 162.82 162.82

0 129.21 0.00 0.00 0.00 0.00 0.00
0.0 0.0 0.00 0.00 0.00 0.00 0.00
0.0 0.0 0.00 0.00 0.00 0.00 0.00
0.0 0.0 0.00 0.00 0.00 0.00 0.00
33.6 162.8 162.8 162.8 162.8 162.8 162.8

52.2 52.2 52.20 52.20 52.20 52.20 52.20

0.0 0.0 0.00 0.00 0.00 0.00 0.00
0.53 1.06 1.58 2.11 2.63 3.16 3.69
0.53 0.52 0.53 0.53 0.53 0.53 0.53
51.140 50.620 50.093 49.565 49.038 48.511 47.984
98.5 100.4 99.00 99.00 99.00 99.00 99.00
2.0 3.0 4.0 5.0 6.0 7.0 8.0
96.5 97.3 95.0 94.0 93.0 92.0 91.0

161.32 164.01 305.12 367.89 394.40 460.08 486.59

2.69 117.16 62.77 26.51 65.68 26.51 30.02
0 23.95 0.00 0.00 0.00 0.00 0.00
5.23 12.36 22.37 36.52 51.69 69.38 88.10
6.21 10.01 14.15 15.17 17.70 18.71 19.87
152.570 282.750 331.37 342.71 390.70 398.49 408.64
26.4 30.5 26.00 26.00 26.00 26.00 26.00
1.8 2.2 2.6 3.4 3.9 4.7 5.4
24.6 28.2 23.4 22.6 22.1 21.3 20.6

171.17 180.61 254.12 313.72 338.89 401.26 426.43

9.44 73.51 59.60 25.17 62.37 25.17 28.50
0 0 0.00 0.00 0.00 0.00 0.00
15.72 31.48 48.76 76.04 105.51 140.40 177.48
15.76 17.28 27.28 29.47 34.89 37.08 39.56
149.130 205.360 237.68 233.38 260.86 248.95 237.89
11.5 14.7 11.50 11.50 11.50 11.50 11.50
2.0 2.8 2.8 3.6 4.0 4.8 5.5
9.5 11.9 8.7 7.9 7.5 6.7 6.0
ulds , Computers , Motor Vehicles-Other , Motor Vehicles-Transport , Furniture and Fixtures , Electrica Fittings , Office Equipments , Wood
104.1 127.1 166.82 210.21 228.54 273.94 292.26
23.0 39.7 43.39 18.32 45.40 18.32 20.75
0.0 0.1 0.00 0.00 0.00 0.00 0.00
21.1 43.7 67.92 106.14 147.69 197.50 250.64
22.6 24.2 38.22 41.55 49.81 53.14 56.91
 0.0 0.0 0.00 0.00 0.00 0.00 0.00
83.360 98.9 104.07 80.84 76.44 41.63 5.46
5.6 6.9 5.50 5.50 5.50 5.50 5.50
1.9 2.8 2.8 3.6 4.0 4.7 5.4
3.7 4.1 2.7 1.9 1.5 0.8 0.1

469.8 800.4 886.0 869.3 939.9 900.4 862.8

1.0 1.0

33.6 162.8
52.2 52.2
164.0 305.1
180.6 254.1
127.1 166.8
557.5 941.1

15.74 18.39 17.89347 15.746254 21.25744 21.895166 24.303634

80% 80% 70% 80% 75% 80% 85%
19.7 23.0 25.6 25.6 28.3 28.3 28.6
2.7 3.3 2.6 0.0 2.8 0.0 0.2
24.0 31.6 37.20 37.20 37.20 37.20 37.20
70.00 70.00 70.00 70.00 70.00

2.7 117.2
74.5 -126.3
77.2 -9.1 62.77 26.51 65.68 26.51 30.02
9.4 73.5 59.60 25.17 62.37 25.17 28.50
23.0 39.7 43.39 18.32 45.40 18.32 20.75
109.6 104.1 165.77 70.00 173.45 70.00 79.27

56.19 48.92 42.51 36.10 29.69 23.27 16.86

-5.5 -7.3 -6.41 -6.41 -6.41 -6.41 -6.41
ttings , Office Equipments , Wooden Structure , Wind Power Generation Plant
Forensic Checks
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A FY 17-18 A
Reasonable Ratio
Slight Discomfort
Extremenly Suspicious

Cumulative CFO/Cumulative EBITDA 54.87%

Cumulative CFO/Cumulative EBITDA adjusted f 70.20%
Depreciation rate 7.2% 7.5% 7.3%
Debtors outstanding for more than six months 2.2 2.4 3.6
Provisioning for doubtful debts as a proport Not calculated - Materiality Threshold
Opening investable assets 30.8 41.1 46.3
Cash Investments Income 0.4 0.3 0.5 0.5
Cash Yield 0.83% 1.26% 1.17%
Change in Equity over the period of 5 years 737.25
Cumulative Net Profit over the period of 4 ye 579.7565
Dividend (inclusing DDT taxes )paid over 4 ye 59.3486
Shares issues under scheme if amalgamation 178.72979836
Change in reserves (excluding share premium 1.07323985981
Contigent Liability for FY 18-19 46.36
Netwoth for FY 18-19 1105.07
Contigent Liability / Networth 4.20%
Miscellaneous Expenses 5.2 7.1 8.4 9.0
Revenue from Operations (Net of Excise) 1480.8 1713.0 1739.8 1956.9
Miscellaneous Expenses/Revenue 0.35% 0.42% 0.48% 0.46%
Capital Work-in-Progress 1.3 28.0 61.9 136.4
TOTAL GROSS BLOCK 655.7 689.9 747.0 557.5
CWIP/ GB 0.2% 4.1% 8.3% 24.5%
CAGR in Net Revenue 11.54%
CAGR in auditors fees 10.34%
CAGR auditors fees/ CAGR Revenue 0.895616
FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E

11.2%
4.2

30.5
2.9
9.50%

10.2
2292.1
0.44%
10.2
941.1
1.1%
Color Codes
Satisfactory
Negative
Unknown
Needs further research
Investment Checklist of Rlaxo Footwear Ltd
Understanding the Business—The Basics
1)Do I want to spend a lot of time learning about this business?
2)How would you evaluate this business if you were to become its CEO?
3)Can you describe how the business operates, in your own words?
4) How does the business make money?
5)How has the business evolved over time?
6)In what foreign markets does the business operate, and what are the risk of operating in these countries?

Understanding the Business—from the Customer Perspective

7)Who is the core customer of the business?
8) Is the customer base concentrated or diversified?
9)Is it easy or difficult to convince customers to buy the products or services?
10) What is the customer retention rate for the business?
11) What are the signs a business is customer oriented?
12) What pain does the business alleviate for the customer?
13)To what degree is the customer dependent on the products or services from the business?
14)If the business disappeared tomorrow, what impact would this have on the customer base?

Evaluating the Strengths and Weaknesses of a Business and Industry

15) Does the business have a sustainable competitive advantage and what is its source?
16)Does the business possess the ability to raise prices without losing customers?
17) Does the business operate in a good or bad industry?
18)How has the industry evolved over time?
19)What is the competitive landscape, and how intense is the competition?
20) What type of relationship does the business have with its supppliers?

Measuring the Operating and Financial Health of the Business

21) What are the fundamentals of the business?
22) What are the operating metrics of the business that you need to monitor?
23) What are the key risks the business faces?
24) How does inflation affect the business?
25) Is the business’s balance sheet strong or weak?
26) What is the return on invested capital for the business?

Evaluating the Distribution of Earnings (Cash Flows)

27) Are the accounting standards that management uses conservative or liberal?
28) Does the business generate revenues that are recurring or from one-off transactions?
29) To what degree is the business cyclical, countercyclical, or recession-resistant?
30) To what degree does operating leverage impact the earnings of the business?
31)Does the business have high or low capital- expenditure requirement?

Assessing the Quality of Management—Background and classification:Who are they?

32)What type of manager is leading the company?
33)How does working capital impact the cash flows of the business?
34)What are the effects on the business of bringing in outside management?
35)Is the manager a lion or a hyena?
36)How did the manager rise to lead the business?
37) How are senior managers compensated, and how did they gain their ownership interest?
38) Have the managers been buying or selling the stock?

Assessing the Quality of Management—Competence: How management operates the business

39) Does the CEO manage the business to benefit all stakeholders?
40) Does the management team improve its operations day- to- day or does it use a strategic plan to conduct its business?
41) Do the CEO and CFO issue guidance regarding earnings?
42) Is the business managed in a centralized or decentralized way?
43) Does management value its employees?
44) Does the management team know how to hire well?
45) Does the management team focus on cutting unnecessary costs?
46) Are the CEO and CFO disciplined in making capitalallocation decision?
47)Do the CEO and CFO buy back stock opportunistically?

Assessing the Quality of Management—Positive and Negative traits

48)Does the CEO love the money or the business?
49)Can you identify a moment of integrity for the manager?
50)Are managers clear and consistent in their communications and actions with stakeholders?
51) Does management think independently and remain unswayed by what others in their industry are doing?
52) Is the CEO self-promoting?

Evaluating Growth Opportunities

52)Does the business grow through mergers and acquisitions, or does it grow organically?
53) What is the management team’s motivation to grow the business?
54) Has historical growth been profitable and will it continue?
55)What are the future growth prospects for the business?
56) Is the management team growing the business too quickly or at a steady pace?
Evaluating Mergers & Acquisitions
57)How does management make M&A decisions?
58) Have past acquisitions been successful?
Total
ese countries?

Mass Market product

Diversified
Easy
Some/yes Bahamas Customer retailer ~ 30%
Price sensitive/ Fashion/quality focus/Brand Ambassador Influencer
Gives them Fashion and Quality footwear closer to their house
not much
Some of the customers will miss relaxo

Yes, 1. Distribution Network 2. Cost Advantage

Not much
Great

intense, price competition

Decent

Volumes, avg realisations , Related party transactions, capex , Channel Check, GP margin
Raw material prices, keyman risk, Macro Economics Risks, labour
does not significanltly
strong
20.49%

Conservative
recurring
Recession resistent to a reasonable extent
Reasonable Impact
 High

Strong handle on the market and cosumer taste

significanlty
Culture
Lion

no activity

Need to talk to a few employees

plan to conduct its business?
NO

ustry are doing?

organics

Belts under penetrated, exports , premiumisation (Sparx)

Steady

Don't
NA
Income Statement (INR in Crores)
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A FY 17-18 A FY 18-19 A
Revenue from Operations (Net of Excise) 1480.8 1713.0 1739.8 1956.9 2292.1
Cost of Material Consumed Includes cost of 645.4 706.0 724.9 879.9 1064.1
Other Manufacturing Costs Incudes Electri 169.2 191.8 199.6 228.2 296.6
Cost of Goods Sold (COGS) 814.6 897.8 924.5 1108.2 1360.7
GROSS PROFIT (GP) 666.2 815.2 815.4 848.8 931.4
Employee Benefits Expense 134.5 160.8 172.2 214.1 258.7
Selling and Distribution Expenses 218.4 267.9 251.4 168.6 175.9
Cost of Repairs Includes Buildin 19.8 25.1 22.4 22.7 26.2
Rent 0 33.5 38.5 44.5 47.1 43.3
Legal and Professional Expens0 28.7 37.7 38.1 43.2 36.8
Other expenses Includes Insuran 30.6 42.2 41.6 47.9 58.0
Selling, General and Administrative Expenses 465.5 572.2 570.2 543.6 598.9
Earning before Interest , Taxes, Depreciatio 200.6 243.0 245.2 305.2 332.5
Depreciation and Amortisation Expense 39.9 47.1 51.5 54.3 62.4
Earning before Interest and Taxes (EBIT) 160.7 195.9 193.8 250.8 270.1
Finance Costs 18.5 22.9 15.2 8.6 6.9
Investment Income Refer to other 0.4 0.4 2.8 1.4 4.8
Gain on sale of non current i This items was c 0.0 4.3 0.0 0.0 0.0
Earnings Before Taxes (EBT) 142.6 177.6 181.4 243.6 268.0
Tax Expense Includes Current 39.6 57.3 58.4 82.6 92.5
Earning After Taxes (EAT) 103.0 120.3 123.0 161.1 175.4
FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E
2415.30 2125.46 3098.93 3447.25 4056.03
1073.61 944.78 1317.96 1401.29 1604.04
311.57 318.82 418.36 404.67 476.13
1385.2 1263.6 1736.3 1806.0 2080.2
1030.1 861.9 1362.6 1641.3 1975.9
277.76 212.55 356.38 396.43 466.44
181.15 170.04 232.42 258.54 304.20
30.86 27.16 39.60 44.05 51.83
49.34 49.34 50.12 53.27 57.99
38.89 21.25 49.89 55.50 65.30
57.47 50.57 73.73 82.02 96.51
635.5 530.9 802.1 889.8 1042.3
394.7 331.0 560.5 751.5 933.6
86.59 93.13 109.33 115.87 123.28
308.1 237.8 451.1 635.6 810.3
6.09 6.95 6.95 6.95 7.39
4.79 4.79 4.79 4.79 4.79
0.0 0.0 0.0 0.0 0.0
306.8 235.7 449.0 633.4 807.7
82.83 63.63 121.22 171.03 218.08
223.9 172.0 327.7 462.4 589.6
Balance Sheet (INR in Crores)
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A
ASSETS
Non-Current Assets
Property, Plant and Equipment 466.92 462.62 480.08
Capital Work-in-Progress 1.27 27.99 61.91
Intangible Assets and Inatngibles under development 5.62 68.15 61.73
Investments and other non current financial assets Costant 0.07 0.50 0.83
Loans Constant 12.12 19.05 18.31
Current Assets
Inventories 248.68 285.84 290.21
Trade Receivables 83.65 108.05 123.71
Cash and Cash Equivalents Including o 4.49 2.37 3.65
Loans Constant 14.13 19.21 23.49
Other Current Assets Inluding oth 5.84 2.95 3.22
Total Assets 842.80 996.75 1067.14
EQUITY AND LIABILITIES
Equity
Equity Share Capital Constant 6.00 12.00 12.01
Other Equity/ Reserves and Surplus 361.82 467.98 592.78
Liabilities
Non-Current Liabilities
Borrowings includes oth 144.50 112.99 69.81
Provisions Constant 3.90 5.28 7.26
Other long term liabilities Constat 5.48 10.23 10.06
Deferred Tax Liabilities (Net) Constat 24.91 27.01 28.34
Current Liabilities
Borrowings Constant 66.48 89.61 60.89
Trade Payables 79.20 122.37 125.70
Other Financial Liabilities Current mat 0.00 0.00 0.00
Other Current Liabilities Includes en 128.36 118.11 137.15
Provisions Employee re 22.14 31.16 23.14
Current Tax Liabilities (Net) Constant 0.00 0.00 0.00
Total Equity and Liabilities 842.80 996.75 1067.14
Check 1.00 1.00 1.00

Equity 367.82

Borrowing 144.50
TOTAL 512.32
FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E

469.81 800.45 886.04 869.32 939.85 900.39 862.80

136.44 10.17 0.00 0.00 0.00 0.00 0.00
56.19 48.92 42.51 36.10 29.69 23.27 16.86
9.45 7.82 7.82 7.82 7.82 7.82 7.82
16.20 17.09 17.09 17.09 17.09 17.09 17.09

313.93 401.54 411.79 440.03 541.63 537.48 615.25

192.35 196.59 205.14 349.39 263.20 292.78 344.48
4.50 2.22 112.09 116.55 397.54 819.36 1297.20
0.39 0.39 0.39 0.39 0.39 0.39 0.39
69.47 119.37 119.37 119.37 119.37 119.37 119.37
1268.73 1604.56 1802.24 1956.06 2316.57030688 2717.95 3281.26

12.03 12.40 12.40 12.40 12.40 12.40 12.40

749.18 1092.67 1303.12 1475.15 1762.26 2167.33 2683.84

39.97 0.01 0.01 0.01 0.01 0.01 0.01

7.76 9.00 9.00 9.00 9.00 9.00 9.00
0.00 0.00 0.00 0.00 0.00 0.00 0.00
26.31 34.44 34.44 34.44 34.44 34.44 34.44

86.09 86.92 86.92 86.92 86.92 86.92 86.92

174.90 190.93 178.17 159.95 233.35 229.67 276.46
92.63 114.27 114.27 114.27 114.27 114.27 114.27
70.48 58.18 58.18 58.18 58.18 58.18 58.18
6.75 3.69 3.69 3.69 3.69 3.69 3.69
2.63 2.05 2.05 2.05 2.05 2.05 2.05
1268.73 1604.56 1802.24 1956.06 2316.57030688 2717.95 3281.26
1.00 1.00 1.00 1.00 1.00 1.00 1.00

LT Assets 486.00

NWC 60.60
Other Liab -34.29

TOTAL 512.32
Cash Flow Statement (INR in Crores)
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A
Cash flow from Operating Activities
Profit Before Tax 142.65 177.59 181.36
Adjustments for
Depreciation and Amortisation Expense 39.90 47.12 51.48
Finance Costs 18.48 22.89 15.18
Interest income on fixed deposits Includes Inter 0.36 -4.04 -0.19
Other Miscalleneous items Includes Share B 0.33 0.37 0.17
Operating Profit Before Working Capital Changes 201.72 243.93 248.00
Changes in Working Capital
Adjustments for (Increase) / Decrease in Operating Assets
Loans to Employees Current Asset - 0.00 0.00
Other Misc. Items includes Securi 0.00 0.00 0.00
Trade Receivables -19.25 -33.37 -21.11
Other Current Assets 0.00 0.00
Inventories -84.68 -37.16 -4.37
Adjustments for Increase / (Decrease) in Operating Liabilities 0.00 0.00
Trade Payables 49.38 40.28 17.19
Other Financial Liabilities 0.00 0.00 0.00
Provisions Include current 0.00 0.00 0.00
Current Tax Liabilities (Net)
Deferred Tax Liabilities (Net)
Other Current Liabilities 0.00 0.00 0.00
Cash Generated from Operations 147.16 213.69 239.71
Taxes Paid -37.59 -54.26 -58.63
Net Cash Generated from Operating Activities 109.57 159.43 181.08
Cash Flow from Investing Activities
Net Payment for Purchase of Property, Plant, Equipment including -130.19 -134.43 -90.90
Net Investments in Financial Assets Includes Invest 0.00 3.92 0.01
Loans - Non Current
Investment related Income Includes Net G 0.39 0.25 0.52
Net Cash Flow (Used in) Investing Activities -129.79 -130.26 -90.37
Cash Flow from Financing Activities
Proceeds from Issuance of Equity Shares under " Linked to Equity 0.00 0.56 1.84
Other long term liabilities
Net Borrowings includes Procee 41.00 -3.03 -62.52
Dividend and Dividend Distribution Tax Paid -3.50 -7.21 -8.66
Finance Costs Paid -18.48 -21.63 -20.10
Net Cash Flow (Used in) Financing Activities 19.02 -31.31 -89.44
Net (Decrease) in Cash and Cash Equivalents -1.21 -2.13 1.27
Cash and Cash Equivalents at beginning of the year 5.58 4.37 2.24
Changes in Cash and Cash Equivalents under Scheme of Amalgam 0.00 0.00
Earmarked Balances with Banks 0.12 0.14 0.14
Exchange Fluctuation on Foreign Currency Bank Balances
Cash and Cash Equivalents at end of the year 4.49 2.37 3.65
FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E

243.62 267.98 306.77 235.67 448.97 633.43 807.71

54.34 62.41 86.59 93.13 109.33 115.87 123.28

8.59 6.90 6.09 6.95 6.95 6.95 7.39
-4.93 -4.67 -4.79 -4.79 -4.79 -4.79 -4.79
5.92 8.96 0.00 0.00 0.00 0.00 0.00
307.54 341.58 394.66 330.96 560.47 751.47 933.59

-0.07 0.02 0.00 0.00 0.00 0.00 0.00

-1.46 -20.13
-69.80 -24.18 -8.55 -144.26 86.19 -29.58 -51.70
-42.24 -29.52 0.00 0.00 0.00 0.00 0.00
-23.72 -87.61 -10.25 -28.24 -101.60 4.15 -77.77

49.30 18.53 -12.76 -18.22 73.40 -3.68 46.79

10.35 6.26 0.00 0.00 0.00 0.00 0.00
4.26 2.66 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00
0.17 2.12 0.00 0.00 0.00 0.00 0.00
234.33 209.73 363.10 140.25 618.47 722.35 850.91
-80.08 -86.26 -82.83 -63.63 -121.22 -171.03 -218.08
154.25 123.47 280.27 76.62 497.25 551.32 632.83

-108.70 -91.40 -155.60 -70.00 -173.45 -70.00 -79.27

-0.21 31.59 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00
0.54 2.90 4.79 4.79 4.79 4.79 4.79
-108.37 -56.91 -150.81 -65.21 -168.66 -65.21 -74.48

4.56 3.17 0.00 0.00 0.00 0.00 0.00

0.00 0.00 0.00 0.00 0.00
-21.73 -41.58 0.00 0.00 0.00 0.00 0.00
-14.46 -21.76 -13.50 0.00 -40.64 -57.34 -73.11
-14.64 -8.07 -6.09 -6.95 -6.95 -6.95 -7.39
-46.27 -68.24 -19.58 -6.95 -47.59 -64.29 -80.50
-0.39 -1.68 109.87 4.45 280.99 421.82 477.84
3.51 3.12 2.22 112.09 116.55 397.54 819.36
0.00 0.43 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00
0.00 0.01 0.00 0.00 0.00 0.00 0.00
3.12 1.88 112.09 116.55 397.54 819.36 1297.20
Vertical Analysis-Income Statement
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A
Revenue from Operations (Net of Excise) 100.00% 100.00% 100.00%
Cost of Material Consumed Includes co 43.59% 41.22% 41.66%
Other Manufacturing Costs Incudes Ele 11.43% 11.19% 11.47%
Cost of Goods Sold (COGS) 55.01% 52.41% 53.13%
GROSS PROFIT (GP) 44.99% 47.59% 46.87%
Employee Benefits Expense 9.08% 9.39% 9.90%
Selling and Distribution Expenses 14.75% 15.64% 14.45%
Cost of Repairs Includes Bu 1.34% 1.47% 1.28%
Rent 0 2.26% 2.25% 2.56%
Legal and Professional Expenses (Refer Note 49) 0 1.94% 2.20% 2.19%
Other expenses Includes In 2.07% 2.46% 2.39%
Selling, General and Administrative Expenses (S,G & A) 31.44% 33.40% 32.77%
Earning before Interest , Taxes, Depreciation and Amortisation (EBITDA) 13.55% 14.18% 14.09%
Depreciation and Amortisation Expense 2.69% 2.75% 2.96%
Earning before Interest and Taxes (EBIT) 10.85% 11.43% 11.14%
Finance Costs 1.25% 1.34% 0.87%
Investment Income Refer to o 0.03% 0.02% 0.16%
Gain on sale of non current investments This items 0.00% 0.25% 0.00%
Earnings Before Taxes (EBT) 9.63% 10.37% 10.42%
Tax Expense Includes Cu 2.67% 3.35% 3.36%
Earning After Taxes (EAT) 6.96% 7.02% 7.07%
FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E
100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
44.97% 46.43% 44.45% 44.45% 42.53% 40.65% 39.55%
11.66% 12.94% 12.90% 15.00% 13.50% 11.74% 11.74%
56.63% 59.37% 57.35% 59.45% 56.03% 52.39% 51.29%
43.37% 40.63% 42.65% 40.55% 43.97% 47.61% 48.71%
10.94% 11.28% 11.50% 10.00% 11.50% 11.50% 11.50%
8.62% 7.68% 7.50% 8.00% 7.50% 7.50% 7.50%
1.16% 1.14% 1.28% 1.28% 1.28% 1.28% 1.28%
2.41% 1.89% 2.04% 2.32% 1.62% 1.55% 1.43%
2.21% 1.61% 1.61% 1.00% 1.61% 1.61% 1.61%
2.45% 2.53% 2.38% 2.38% 2.38% 2.38% 2.38%
27.78% 26.13% 26.31% 24.98% 25.88% 25.81% 25.70%
15.59% 14.51% 16.34% 15.57% 18.09% 21.80% 23.02%
2.78% 2.72% 3.59% 4.38% 3.53% 3.36% 3.04%
12.82% 11.78% 12.75% 11.19% 14.56% 18.44% 19.98%
0.44% 0.30% 0.25% 0.33% 0.22% 0.20% 0.18%
0.07% 0.21% 0.20% 0.23% 0.15% 0.14% 0.12%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
12.45% 11.69% 12.70% 11.09% 14.49% 18.38% 19.91%
4.22% 4.04% 3.43% 2.99% 3.91% 4.96% 5.38%
8.23% 7.65% 9.27% 8.09% 10.58% 13.41% 14.54%
Ratio Analysis
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A FY 17-18 A
Per Unit Economics
Average price realisation p.u 120.59 126.42 129.26 124.33
Average manufacturing cost per unit 66.3 66.3 68.7 70.4
Employee Cost Allocated per unit 11.0 11.9 12.8 13.6
Selling and General Cost Allocated per unit 17.8 19.8 18.7 10.7
Allocation of Depreciation on per unit 3.2 3.5 3.8 3.5

Profitability Ratios
Gross Profit Margin ratio 44.99% 47.59% 46.87% 43.37%
EBITDA Margin 13.5% 14.2% 14.1% 15.6%
Operating Profit Margin (EBIT) 10.9% 11.4% 11.1% 12.8%
Pre- Tax margin (EBT) 9.63% 10.37% 10.42% 12.45%
Net Proft Margin 6.96% 7.02% 7.07% 8.23%
Effective Tax rate 27.76% 32.27% 32.20% 33.88%
Return on Capital Employed 22.67% 22.39% 19.50% 20.95%
Return on Invested Capital 22.72% 22.90% 19.75% 20.81%
Cash Profit (X) 91.5 138.1 161.5 140.1
Cash Return on Invested Capital 17.85% 23.28% 23.94% 17.49%
Earning After Taxes (EAT) (Y) 103.0 120.3 123.0 161.1
Correlation (X,Y) 0.1641802
Return on Equity (ROE) 28.02% 25.06% 20.33% 21.16%
Net Profit Margin 6.96% 7.02% 7.07% 8.23%
Total Asset Turover Ratio 1.8 1.7 1.6 1.5
Financial Leverage Ratio 2.3 2.1 1.8 1.7
Check 1.0 1.0 1.0 1.0

Solvency Ratios/ Coverage Ratios/Liquidity Ratio

Long term. Borrowing/ Total Capital 28.21% 19.05% 10.35% 4.99%
Fixed Cost Coverage Ratio 4.503 4.583 4.857 6.326
Defensive Interval Ratio 0.073 0.040 0.066

Efficiency Ratios
Volume (qty) manufactured per employee per year 26379.377 26959.809 27723.996 27431.161
Fixed Asset Turover Ratio 3.125 3.066 2.882 2.954
Operational Fixed Assets turnover ratio 3.134 3.227 3.211 3.720
Number of Days in Inventory 140.633 147.772 146.128 130.220
Number of days in Receivables 20.618 23.022 25.953 35.877
Number of days of Payables 0.000 60.100 62.914 70.645
Working Capital Cycle/ Operating Cycle 161.251 170.794 172.081 166.097
Cash Conversion Cycle/ New Operating Cycle 0.000 110.694 109.167 95.451
FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E

124.64
74.0
14.1
9.6
3.4

40.63%
14.5%
11.8%
11.69%
7.65%
34.53%
16.11%
16.28%
118.3
10.71%
175.4

15.88%
7.65%
1.4
1.5
1.0

0.00%
7.481
0.090

29405.181
2.667
2.699
137.730
31.306
60.508
169.035
108.527
Working Capital Schedule (INR in Crores)
Particulars/Year C FY 14-15 A FY 15-16 A FY 16-17 A FY 17-18 A FY 18-19 A FY 19-20 E
Working Capital 60.6 57.2 97.4 147.2 264.1
working Capital Turover Ratio 24.4 30.0 17.9 13.3 8.7
Revenue from Operations (Net 1480.8 1713.0 1739.8 1956.9 2292.1 2415.30
Inventory Analysis
Inventories 248.684 285.8441 290.21 313.93 401.54 411.79
Raw Materials,including Pac I 62.03 65.57 74.85 85.37 117.74
Work-in-Progress 35.04 39.68 42.27 43.48 58.51
Finished Goods 119.04 134.49 127.05 135.70 151.67
Stock-in-Trade 32.57 46.11 46.04 49.38 73.62
Total 248.68 285.84 290.21 313.93 401.54
Check 1.00 1.00 1.00 1.00 1.00
Vertical Anlysis - Inventory
Raw Materials,including Packi 24.9% 22.9% 25.8% 27.2% 29.3%
Work-in-Progress 14.1% 13.9% 14.6% 13.9% 14.6%
Finished Goods 47.9% 47.1% 43.8% 43.2% 37.8%
Stock-in-Trade 13.1% 16.1% 15.9% 15.7% 18.3%
TOTAL 100% 100% 100% 100% 100%

Inventory Turnover Ratio

Cost of Material Consumed 645.4 706.0 724.9 879.9 1064.1 1073.61
Inventory Turnover Ratio 2.6 2.5 2.5 2.8 2.7 2.61
Number of Days in Inventory 140.6 147.8 146.1 130.2 137.7 140.00

Accounts Receivable Turnover Ratio

Trade Receivables 83.6494 108.045 123.71 192.35 196.59 205.14
Accounts Receivable Turnover 17.7 15.9 14.1 10.2 11.7 11.77
Number of days in Receivable 20.6 23.0 26.0 35.9 31.3 31.00

Ageing Schedule
Up to 30 days past due 93.5 103.81 157.96 155.23
31 to 90 days past due 11.57 14.51 23.87 29.89
91 to 180 days past due 1.45 2.44 6.96 7.3
181 to 365 days past due 1.54 1.87 2.63 3.11
More than 365 days past due 0.63 0.55 0.93 1.06
TOTAL 196.6
Check 0.6 -0.5 TRUE TRUE
Vertical Analysis
Up to 30 days past due 86.5% 83.9% 82.1% 79.0%
31 to 90 days past due 10.7% 11.7% 12.4% 15.2%
91 to 180 days past due 1.3% 2.0% 3.6% 3.7%
181 to 365 days past due 1.4% 1.5% 1.4% 1.6%
More than 365 days past due 0.6% 0.4% 0.5% 0.5%
Accounts Payables
Purchases 743.2 729.3 903.7 1151.7 1083.9
Trade Payables 79.2 122.4 125.7 174.9 190.9 178.17
Accounts Payable Turnover Ratio 6.1 5.8 5.2 6.0 6.08
Number of days of Payables 60.1 62.9 70.6 60.5 60.00

Working Capital Cycle/ Operat 161.3 170.8 172.1 166.1 169.0 171.0
Cash Conversion Cycle/ New Operating Cy 110.7 109.2 95.5 108.5 111.0
FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E

2125.46 3098.93 3447.25 4056.03

440.03 541.63 537.48 615.25

944.78 1317.96 1401.29 1604.04

2.15 2.43 2.61 2.61
170.00 150.00 140.00 140.00

349.39 263.20 292.78 344.48

6.08 11.77 11.77 11.77
60.00 31.00 31.00 31.00
973.0 1419.6 1397.1 1681.8
159.95 233.35 229.67 276.46
6.08 6.08 6.08 6.08
60.00 60.00 60.00 60.00

230.0 181.0 171.0 171.0

170.0 121.0 111.0 111.0
Debt Schedule
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A FY 17-18 A FY 18-19 A
Borrowings Non Current 144.5 113.0 69.8 40.0 0.0
Borrowings Current 66.5 89.6 60.9 86.1 86.9
Total 211.0 202.6 130.7 126.1 86.9
Finance Costs 18.4836 22.8926 15.18 8.59 6.9
Effective finance cost 10.9% 7.5% 6.6% 5.5%
FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E
0.01 0.01 0.01 0.01 0.01
86.92 86.92 86.92 86.92 86.92
86.9 86.9 86.9 86.9 86.9
6.0851 6.9544 6.9544 6.9544 7.38905
7.00% 8.00% 8.00% 8.00% 8.50%
Dividend Schedule
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A
Earning After Taxes (EAT) 103.0499 120.2765 122.9700
Number of shares outstanding at the end of theConstant 6.0006 12.0040 12.0130
Earning Per Share 17.1733 10.0197 10.2364
Proposed Dividend (Rs in Crores) 6.0006 7.2024 12.0100
Divident distribution tax (Rs in crores) 1.2216 1.4662 2.4500
Dividend payout ratio 5.8% 6.0% 9.8%
Dividend Distribution tax rate 20.36% 20.36% 20.40%
Payout ratio (including Dividend distribution tax) 7.01% 7.21% 11.76%
Dividend Per Share 1.0 0.6 1.0
FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E
161.0700 175.4400 223.94 172.04 327.75 462.41 589.63
12.0354 12.4051 24.81 24.81 24.81 24.81 24.81
13.3831 14.1426 9.0 6.9 13.2 18.6 23.8
12.0100 18.0500 11.20 0.00 40.64 57.34 73.11
2.4500 3.7100 2.30 0.00 0.00 0.00 0.00
7.5% 10.3% 5.00% 0.00% 12.40% 12.40% 12.40%
20.40% 20.55% 20.55% 0.00% 0.00% 0.00% 0.00%
8.98% 12.40%
1.0 1.5
 Cost Model (INR in Crores)
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A
Cost of Material Consumed
Method 1 (Not used)
Cost of Material Consumed 645.4384 706.04 724.89
Revenue from Operations (Net of Excise) 1480.8142 1713.0161 1739.84
Cost of material consumed/ Revenue from operations 43.59% 41.22% 41.66%
Method 2 (USED)
Cost of Material Consumed 645.4384 706.04 724.89
Revenue Volume data (qty in crores) 12.2796 13.55 13.46
Cost of Material Consumed per unit (X) 52.6 52.1 53.9
ETHYLENE-VINYL ACETATE COPOLYMERS- Import Source
Price -(Y)
Screener
118.2 90.5 95.5
Correlation (X,Y) 0
polyurethane Import Prices (Z) Source - Screener 232.0 518.2 520.0
Correlation (X,Z) 0
Other Manufacturing Cost
Other Manufacturing Costs 169.2036 191.7721 199.57
Other Manufacturing Cost/ Revenue from Operations 11.43% 11.19% 11.47%
Employee Benefits Expense
Employee Benefits Expense 134.5044 160.8449 172.21
Method 1 (USED)
Employee benefit expenses/ Revenue from Operations 9.08% 9.39% 9.90%
Method 2 (Not Used)
Number of employees during the year 4655.0 5026.0 4855.0
Average Cost per employee (*in INR) ### ₹ 320,025.67 ₹ 354,706.49
Revenue Volume data (qty in crores) 12.2796 13.55 13.46
Volume (qty) manufactured per employee per year 26379.4 26959.8 27724.0
YOY Growth in volume per employee per year 2% 3%
YOY Growth in Average Cost per employee 10.76% 10.84%
Employee Benefits Expense 134.5044 160.8449 172.21
Remuneration of Mukand Lal Dua 7.166 8.79 9.12
Remuneration of Ramesh Kumar Dua 7.166 8.79 9.12
TOTAL 14.3 17.6 18.2
Remuneration of Dua Brothers/ Net Profit 13.9% 14.6% 14.8%
Selling and Distribution Expenses
Selling and Distribution Expenses 218.3963 267.8858 251.39
Selling and Distribution Expenses/Revenue from operations 14.75% 15.64% 14.45%
Cost of Repairs
Cost of Repairs 19.7839 25.1126 22.35
Cost of repairs/ Revenue from operations 1.34% 1.47% 1.28%
Cost of repairs/ Cost of Goods Sold 2.43% 2.80% 2.42%
Rent
Rent 33.5129 38.5262 44.46
Exclusive Brand Outlets (EBO) 207.0 250.0 270.0
Rent expense per EBO 0.162 0.154 0.165
YOY additional to EBO's under COCO Model 43.0 20.0
Legal and Professional Expenses (Refer Note 49)
Legal and Professional Expenses (Refer Note 49) 28.7332 37.6604 38.12
 Payment to Statutory Auditors
Audit Fees 0.06 0.09 0.09
Other Services 0.07 0.12 0.12
TOTAL 0.13 0.21 0.21
Payment to Statutory Auditors/Net Revenue from operations 0.01% 0.01% 0.01%
Payment to Statutory Auditors/ Net Profit 0.12% 0.17% 0.17%
Legal and Professional Fees/ Revenue from Net Operations 1.94% 2.20% 2.19%
Other expenses
Other expenses 30.6042 42.2 41.62
Other expenses/ Net Revenue from Operations 2.07% 2.46% 2.39%
FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E

879.93 1064.13 1086.88 892.69 1301.55 1516.79 1784.65

1956.92 2292.08 2415.30 2125.4639373 3098.9264205 3447.2457502 4056.0293497
44.97% 46.43% 45.0% 42.0% 42.0% 44.0% 44.0%

879.93 1064.13 1073.61 944.78 1317.96 1401.29 1604.04

15.74 18.39 17.89347 15.7462536 21.25744236 21.895165631 24.30363385
55.9 57.9 60.00 60.00 62.00 64.00 66.00
95.0 119.3

338.0 345.0

228.24 296.57 311.57 318.82 418.36 404.67 476.13

11.66% 12.94% 12.90% 15.00% 13.50% 11.74% 11.74%

214.08 258.66 277.76 212.55 356.38 396.43 466.44

10.94% 11.28% 11.50% 10.00% 11.50% 11.50% 11.50%

5738.0 6254.0 5920.00 5209.00 6842.00 6855.00 7403.00

₹ 373,091.67 ₹ 413,591.30 ₹ 458,052.37 ₹ 474,084.20 ₹ 525,048.25 ₹ 581,490.94 ₹ 644,001.21
15.74 18.39 17.89347 15.7462536 21.25744236 21.895165631 24.30363385
27431.2 29405.2 30226.68 30226.68 31071.13 31939.17 32831.46
-1% 7% 2.79% 0.00% 2.79% 2.79% 2.79%
5.18% 10.86% 10.8% 3.5% 10.8% 10.8% 10.8%
214.08 258.66 271.17 246.95 359.24 398.61 476.75
12.10 13.72
12.10 13.72
24.2 27.4
15.0% 15.6%

168.6 175.94 181.15 170.04 232.42 258.54 304.20

8.62% 7.68% 7.50% 8.00% 7.50% 7.50% 7.50%

22.73 26.15 30.86 27.16 39.60 44.05 51.83

1.16% 1.14% 1.28% 1.28% 1.28% 1.28% 1.28%
2.05% 1.92%

47.1 49.84 49.34 49.34 50.12 53.27 57.99

300.0 335.0 355.00 355.00 360.00 380.00 410.00
0.157 0.149 0.16 0.16 0.16 0.16 0.16
30.0 35.0 20.00 0.00 5.00 20.00 30.00

43.22 36.82 38.89 21.25 49.89 55.50 65.30

 0.11 0.12
0.07 0.07
0.18 0.19
0.01% 0.01%
0.11% 0.11%
2.21% 1.61% 1.6% 1.0% 1.6% 1.6% 1.6%

47.85 57.97 57.47 50.57 73.73 82.02 96.51

2.45% 2.53% 2.38% 2.38% 2.38% 2.38% 2.38%
Revenue Model (INR in Crores, unless otherwise mentioned)
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A
Basic Revenue Model (not used)
Revenue from Operations (Net of Excise) 1480.8 1713.0 1739.8
Year on Year (YOY) revenue Growth rate 15.7% 1.6%

Top Down Approach

Peer Group Companies (revenue from footwear business)
Relaxo Revenue from Operations (Net of Excise) 1480.8 1713.0 1739.8
Bata India 2155.2 2425.0 2474.0
Mirza International 689.0 694.0 702.0
Sreeleathers 66.7 79.7 99.5
Liberty Shoes 526.0 454.0 497.0
Khadim India 460.2 534.5 621.2
TOTAL 5377.8 5900.2 6133.6
YOY Revenue Growth listed footwear universe 9.71% 3.95%

Market Share / Revenue of Listed universe in footwear % Change in market share over 5 years
Relaxo Revenue from Operations (Net of Excise) 2.43% 27.5% 29.0% 28.4%
Bata India -1.8% 40.1% 41.1% 40.3%
Mirza International -1.5% 12.8% 11.8% 11.4%
Sreeleathers 1.0% 1.2% 1.4% 1.6%
Liberty Shoes -1.9% 9.8% 7.7% 8.1%
Khadim India 1.8% 8.6% 9.1% 10.1%

Bottom Up Approach
Revenue from Operations (Net of Excise) 1480.8142 1713.0161 1739.84
Revenue Volume data (qty in crores) 12.2796 13.55 13.46
YOY Growth in volume data (Qty) 10.35% -0.66%
Average price realisation p.u 120.6 126.4 129.3
YOY growth in average price realisation 4.83% 2.25%
entioned)
FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E

1956.9 2292.1 2567.13 2618.47 3142.17 3519.23 3941.53

12.5% 17.1% 12.0% 2.0% 20.0% 12.0% 12.0%

1956.9 2292.1 2516.74 2558.04 3119.21 3327.21 3548.20

2634.0 2931.0
729.0 864.0
140.9 167.7
544.0 602.0
741.10 791.04
6745.9 7647.8 8259.64 8259.64 9911.57 10407.15 10927.51
9.98% 13.37% 8% 0% 20% 5% 5%

29.0% 30.0% 30.47% 30.97% 31.47% 31.97% 32.47%

39.0% 38.3%
10.8% 11.3%
2.1% 2.2%
8.1% 7.9%
11.0% 10.3%

1956.92 2292.08 2415.30 2125.46 3098.93 3447.25 4056.03

15.74 18.39 17.89 15.75 21.26 21.90 24.30
16.94% 16.84% -2.7% -12.0% 35.0% 3.0% 11.0%
124.3 124.6 134.98 134.98 145.78 157.44 166.89
-3.82% 0.25% 8.3% 0.0% 8.0% 8.0% 6.0%
Balance Sheet (INR in Crores)
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A
ASSETS
Non-Current Assets
Property, Plant and Equipment 55.40% 46.41% 44.99%
Capital Work-in-Progress 0.15% 2.81% 5.80%
Intangible Assets and Inatngibles under development 0.67% 6.84% 5.78%
Investments and other non current financial assets 0.01% 0.05% 0.08%
Loans 1.44% 1.91% 1.72%
Current Assets
Inventories 29.51% 28.68% 27.20%
Trade Receivables 9.93% 10.84% 11.59%
Cash and Cash Equivalents Including o 0.53% 0.24% 0.34%
Loans 1.68% 1.93% 2.20%
Other Current Assets Inluding ot 0.69% 0.30% 0.30%
Total Assets 100.00% 100.00% 100.00%
EQUITY AND LIABILITIES
Equity
Equity Share Capital 0.71% 1.20% 1.13%
Other Equity/ Reserves and Surplus 42.93% 46.95% 55.55%
Liabilities
Non-Current Liabilities
Borrowings includes oth 17.15% 11.34% 6.54%
Provisions 0.46% 0.53% 0.68%
Other long term liabilities 0.65% 1.03% 0.94%
Deferred Tax Liabilities (Net) 2.96% 2.71% 2.66%
Current Liabilities
Borrowings 7.89% 8.99% 5.71%
Trade Payables 9.40% 12.28% 11.78%
Other Financial Liabilities Current mat 0.00% 0.00% 0.00%
Other Current Liabilities Includes e 15.23% 11.85% 12.85%
Provisions Employee r 2.63% 3.13% 2.17%
Current Tax Liabilities (Net) 0.00% 0.00% 0.00%
Total Equity and Liabilities 100.00% 100.00% 100.00%
Check 1.00 1.00 1.00
FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E

37.03% 49.89%
10.75% 0.63%
4.43% 3.05%
0.74% 0.49%
1.28% 1.07%

24.74% 25.02%
15.16% 12.25%
0.35% 0.14%
0.03% 0.02%
5.48% 7.44%
100.00% 100.00%

0.95% 0.77%
59.05% 68.10%

3.15% 0.00%
0.61% 0.56%
0.00% 0.00%
2.07% 2.15%

6.79% 5.42%
13.79% 11.90%
7.30% 7.12%
5.56% 3.63%
0.53% 0.23%
0.21% 0.13%
100.00% 100.00%
1.00 1.00
Income Statement-Horizontal Analysis-Base year FY 14-15
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A
Revenue from Operations (Net of Excise) 1.00 1.16 1.17
Cost of Material Consumed Includes cos 1.00 1.09 1.12
Other Manufacturing Costs Incudes Elec 1.00 1.13 1.18
Cost of Goods Sold (COGS) 1.00 1.10 1.13
GROSS PROFIT (GP) 1.00 1.22 1.22
Employee Benefits Expense 1.00 1.20 1.28
Selling and Distribution Expenses 1.00 1.23 1.15
Cost of Repairs Includes Bui 1.00 1.27 1.13
Rent 0 1.00 1.15 1.33
Legal and Professional Expenses (Refer Note 49) 0 1.00 1.31 1.33
Other expenses Includes Ins 1.00 1.38 1.36
Selling, General and Administrative Expenses (S,G & A) 1.00 1.23 1.22
Earning before Interest , Taxes, Depreciation and Amortisation (EBITDA) 1.00 1.21 1.22
Depreciation and Amortisation Expense 1.00 1.18 1.29
Earning before Interest and Taxes (EBIT) 1.00 1.22 1.21
Finance Costs 1.00 1.24 0.82
Investment Income Refer to ot 1.00 0.93 7.12
Gain on sale of non current investments This items was classifies as an exceptional items on reported
Earnings Before Taxes (EBT) 1.00 1.24 1.27
Tax Expense Includes Cur 1.00 1.45 1.47
Earning After Taxes (EAT) 1.00 1.17 1.19

Compunded Annual Growth Rate -Revenue 11.54%

Compunded Annual Growth Rate -EAT 14.23%
Compunded Annual Growth Rate -EBITDA 13.46%
Compunded Annual Growth Rate -EBIT 13.85%
 14-15
FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E
1.32 1.55
1.36 1.65
1.35 1.75
1.36 1.67
1.27 1.40
1.59 1.92
0.77 0.81
1.15 1.32
1.41 1.29
1.50 1.28
1.56 1.89
1.17 1.29
1.52 1.66
1.36 1.56
1.56 1.68
0.46 0.37
3.52 12.23
tional items on reported IS
1.71 1.88
2.08 2.34
1.56 1.70
Horizontal Analysis_Balance Sheet
Particulars/Year Comment FY 14-15 A FY 15-16 A FY 16-17 A
ASSETS
Non-Current Assets
Property, Plant and Equipment 1.00 0.99 1.03
Capital Work-in-Progress 1.00 22.07 48.80
Intangible Assets and Inatngibles under development 1.00 12.12 10.98
Investments and other non current financial assets 1.00 7.48 12.30
Loans 1.00 1.57 1.51
Current Assets
Inventories 1.00 1.15 1.17
Trade Receivables 1.00 1.29 1.48
Cash and Cash Equivalents Including o 1.00 0.53 0.81
Loans Security De 1.00 1.36 1.66
Other Current Assets Inluding ot 1.00 0.50 0.55
Total Assets 1.00 1.18 1.27
EQUITY AND LIABILITIES
Equity
Equity Share Capital 1.00 2.00 2.00
Other Equity/ Reserves and Surplus 1.00 1.29 1.64
Liabilities
Non-Current Liabilities
Borrowings includes oth 1.00 0.78 0.48
Provisions 1.00 1.36 1.86
Other long term liabilities 1.00 1.87 1.83
Deferred Tax Liabilities (Net) 1.00 1.08 1.14
Current Liabilities
Borrowings 1.00 1.35 0.92
Trade Payables 1.00 1.55 1.59
Other Financial Liabilities Current maturities of non current borrowings, payabl to emp
Other Current Liabilities Includes e 1.00 0.92 1.07
Provisions Employee r 1.00 1.41 1.04
Current Tax Liabilities (Net)
Total Equity and Liabilities 1.00 1.18 1.27
Check 1.00 1.00 1.00
 FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E

1.01 1.71
107.55 8.02
9.99 8.70
140.00 115.85
1.34 1.41

1.26 1.61
2.30 2.35
1.00 0.49
0.03 0.03
11.90 20.45
1.51 1.90

2.00 2.07
2.07 3.02

0.28 0.00
1.99 2.31
0.00 0.00
1.06 1.38

1.30 1.31
2.21 2.41
orrowings, payabl to employees and directors commision
0.55 0.45
0.30 0.17

1.51 1.90
1.00 1.00
Other Expenses Schedule (INR in Crores)
Particulars/Year Comments
Other Expenses
Manufacturing expense
TOTAL

Other Expense Re-classification

Other Manufacturing Costs Incudes Electricty expenses , p
Amount transferred to Selling and Distribition expenses on IS Includes Advertisment and sale
Cost of Repairs Includes Building , Machinaery a
Rent
Legal and Professional Expenses (Refer Note 49)
Other expenses Includes Insurance , rates and t
TOTAL
CHECK

Other expense Breakup- As per Annual report and notes to accounts

Electricity expenses Transferred to other manufactu
Production Expense Transferred to other manufacturing expenses
Advertisement and Sales Promotion Expenses
Freight and Forwarding Charges
Power and Fuel Transferred to other manufactu
Stores Consumed Transferred to other manufactu
Contract Processing and Handling Charges Transferred to other manufactu
Processing Charges Transferred to other manufactu
Handling Charges Transferred to other manufactu
Building repairs
Machinery (Including Spares) reapirs
Others repairs
Rent (Refer Note 37)
Insurance
Rates and Taxes
Printing and Stationery
Travelling and Conveyance
Communication Expenses
Legal and Professional Expenses (Refer Note 49)
Security Expenses
Allowances for Doubtful Trade Receivables (Expected Credit Loss Allowance) (Refer Note 9 & 42)
Bad debts Written off
Net loss on Disposal / Write off of Property, Plant, Equipment and Intangible Assets
Net loss on Foreign Currency translations and Transactions
Fair Valuation loss on Derivative Financial Instruments
Contribution towards CSR (Refer Note 48)
Miscellaneous Expenses
TOTAL
CHECK
 FY 14-15 A FY 15-16 A FY 16-17 A FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E
281.8378 335.2713 156.16 557.74 636.79
189.96
281.8378 335.2713 346.12 557.74 636.79

169.2036 191.7721 199.57 228.24 296.57

0 0 0 168.6 175.94
19.7839 25.1126 22.35 22.73 26.15
33.5129 38.5262 44.46 47.1 43.34
28.7332 37.6604 38.12 43.22 36.82
30.6042 42.2 41.62 47.85 57.97
281.8378 335.2713 346.12 557.74 636.79
1 TRUE TRUE TRUE TRUE

0 0 6.65
manufacturing expenses 5.31
0 0 86.21 76.76
0 0 82.39 99.18
49.2694 50.4211 40.98 54 70.88
6.4212 5.8589 5.7 7.3
113.513 135.4921
0 0 126.77 148.48 194.76
0 0 19.86 20.06 23.63
0.6787 1.4075 0.94 1.41 1.73
10.5791 13.6989 10.69 10.7 13.9
8.5261 10.0062 10.72 10.62 10.52
33.5129 38.5262 44.46 47.1 43.34
1.6713 2.2333 2.17 2.69 3.06
0.436 0.5391 0.46 0.62 0.87
1.1698 1.2687 1.35 1.61 1.78
12.4943 14.7687 14.91 17.12 20.62
3.3219 3.7154 4.4 3.75 3.57
28.7332 37.6604 38.12 43.22 36.82
5.3606 7.2107 8.61 8.45 9.58
0.2818 0.6617 0.41 0.73 0.55
0.1814 0.0073 0.03 0.3 0.02
0.1751 0.3207 0.45 0.55 1.22
0.3365 0
0 0.6771 0.42 0.27 2.49
0 3.6695 0 2.78 4.03
5.1755 7.1278 8.41 8.98 10.18
281.8378 335.2713 346.12 557.74 636.79
1 1 1 1 TRUE
FY 23-24 E
Other Income Schedule (INR in Crores)
Particulars/Year Comments FY 14-15 A
Other Income As per IS 0.3917
Interest Income on Fixed Deposits, Security Deposits and Bonds, measured at Amortise 0.2334
Dividend Income on Current Investments 0
Net Gain on Sale of Current Investments 0.1583
Net Gain on Foreign Currency Transactions and Translations 0
Miscellaneous Income 0
TOTAL 0.3917
Check TRUE

Investment Income Other Income 0.3917

Net Gain on Foreign Currency Transactions and Translations 0

Yield/Income Generating assets

Investments and other non current financial assets 0.0675
Loans- non -Current 12.12
Cash and Cash Equivalents 4.4886
Loans -Current 14.13
TOTAL 30.8084

Investmnent income/ opening income generating assets

FY 15-16 A FY 16-17 A FY 17-18 A FY 18-19 A FY 19-20 E FY 20-21 E FY 21-22E FY 22-23 E FY 23-24 E
2.2542 3.73 4.46 12.98
0.2669 0.74 0.58 0.65
1.15
0.0964 0.01 0.5 1.06
1.8909 0.94 3.08 8.19
0 2.04 0.3 1.93
2.2542 3.73 4.46 12.98
TRUE TRUE TRUE TRUE

0.3633 2.79 1.38 4.79

1.8909 0.94 3.08 8.19

0.5049 0.83 9.45 7.82

19.05 18.31 16.20 17.09
2.3741 3.65 4.5 2.22
19.21 23.49 0.39 0.39
41.147 46.28 30.54 27.52

1.18% 6.78% 2.98% 15.68%

Relaxo produces over 6 lacs pairs of footwear, every day
10 Manufacturing units
Largest footwear manufacturer in India.
‘Value for Money’ products.
Portfolio of mass appeal brands.
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 with the domestic market being the major contributor of around 90%.
The Indian Footwear industry has potential to grow near to `1.00 Lac Crore by 2021.
India is still an underpenetrated market – a per capita consumption of only ~1.66 pair p.a against a global average of 3 pair. Developed
India’s share in global exports is just 2% compared to China’s share of ~40%, thus presenting room for growth
In-season launches with optimal product portfolio. ~ 20% of the portfolio is restyled every year
8 manufacturing facilities with a capacity to produce ~7.5 Lac pair/day.
Q3 _ investor presentation - data on volume
100,000 MBO in india , relaxo is in ~40,000 of them
Read more at: https://www.bloombergquint.com/business/relaxo-expects-to-grow-faster-than-industry-even-as-slowdow
Copyright © BloombergQuint
Management compnesation as A % TO PAT and Sales
Cash levels onm latest BS
Debtor days and inventory dates
Our primary raw materials are textile, rubber, PU and EVA . Crude has a marginal impact on the
For Competitive reason we cannot give you exact ratios of these divisions, but all are performing well and growing. We can only tell that Spar
See what we have done is we have geotagged the relevant outlets, total number of footwear outlets are more than a lakh, but relevant to Relaxo are arou
Inventory is in all polymers, because PU and EVA are imported so there is a long supply time, so we accordingly have little more inventor
Due to adoption of IND AS 116, our rental expenses have reduced, and simultaneously depreciation and interest expenses have increased. The total im
We shifted INR 50 Crores lease out land from the PPE to the ROU assets and then property which were on rent we converted due to Ind AS-116 aroun
The Company received order from NCLT Delhi for merger of Relaxo Rubber Private Limited and Marvel Polymers Private Li
employee data available on page number 20annual report ,staff -2183, sub staff- 4071
Total Foreign Currency Used - 446 crores
Foregin currency earned - 87 crores , FY 19 annual report - page no 38
Average age of. Building andPPE
Intellectual Property rights ~ 50 crs- could be. SAP Implementation cost / Trademark / Bata
Bahadurgarh Footwear Development Services Private Limited
Track Promoter Shareholding
Amalgamation Scheme needs to be investigated
a
Related Party rent transactions

Gaurantees and loans Taken

2019 20-18
Current 86.92 86.09
Non Curren t 11.25 41.25
FX 13.83 26.02
112 153.36

Legal and Professional expenses - 38 to 40 crores

Cost of material consumed as a ratio to sales has gine by 300-400 bps in last two years
Selling and distribution cost as a % to revenue has reduced by almost 5 tp 6% in FY 18-19

From Aditya Jaiswal to All Panelists: 09:01 PM

Found one piece of info on Relaxo.
Sales breakup by Geography:
North India, contributing ~50% to total sales.
West & South: 30%
East India: 20%

PPE in Fy 2018-19 jumps by +70%, singnificant increase in depreciation expense

Are they outsourcing m,anufacturing of certain products ? If yes, which type products and why?
What kind of companies are manufacturing for them ?
How many acres of land owned by Relaxo, freehold ? How many acres were acquired under the scheme of Amalgamation
 ket with ~22bn pair.
tributor of around 90%.

average of 3 pair. Developed countries average 6-7 pair p.a

ndustry-even-as-slowdown-hurts

ginal impact on the prices of PU and EVA. However, raw materials prices are largely governed by market f
ng. We can only tell that Sparx and Flite divisions are growing faster than other divisions.
, but relevant to Relaxo are around 75000 and our availability is on about 45000 to 50000 outlets, the MBOs is what I am talking about.
have little more inventor
es have increased. The total impact of this new accounting standard on EBITDA is an increase of 11.8 cr.
verted due to Ind AS-116 around INR 158 Crores, so a total of INR 205 Crores has been shown and on the other side we have shown the liability.
Marvel Polymers Private Limited (Transferor Companies) with your Company and subsequently allotted 36,18,453 fully paid up equity sh
cheme of Amalgamation
overned by market forces and supply-demand dynamics

453 fully paid up equity shares of C 1/- each to the shareholders of transferor Companies during the year.