Textiles company Sportking India announced Q1FY25 results:
Financial Highlights:
- Revenue from operations stood at Rs 634.0 crore for Q1FY25, up 17.7% YoY and 3.7% QoQ. Exports contributed 47% in Q1FY25
- EBITDA for Q1FY25 was Rs 73.8 crore – an increase of 48.3% YoY and 10.0% QoQ. EBITDA Margin for the quarter improved by 66 bps sequentially & 240 bps on a yearly basis to reach 11.6%
- Profit After Tax for the quarter was Rs 31.8 crore – registering a growth of 75.1% YoY & 39.2% QoQ. PAT Margin expanded by 165 bps on a yearly basis and 128 bps sequentially
Operational Highlights:
- Total Production Volume stood at 20,311 MT for the quarter v/s 18,455 MT in Q1FY24
- Yarn Sales Volume for Q1FY25 stood at 19,964 MT v/s 17,396 MT in Q1FY24
- Capacity Utilization at 95% for Q1FY25
Commenting on the results, Munish Avasthi, Chairman & Managing Director said, “We continue to enjoy steady recovery as evidenced by consistent growth and margin expansion in our financial results. The overall demand scenario remains encouraging with domestic market demand rising led by retailers and recovery of local segments such as weaving and denim. Export market demand for yarns garnered strength in our key market such as Bangladesh.
Cotton Yarn spreads have remained steady with some improvement being witnessed sequentially. This is largely due to cotton prices remaining range bound and we expect them to be stable for the upcoming quarters. Reduced vagaries in prices of cotton have enabled better purchase and inventory management.
It was another strong quarter on the operational front as we remain on path to margin recovery. Growth for the quarter was volume led with our production and sales volumes both registering a growth of 10% and 15% year on year, respectively. We strive to maintain a dedicated focus on improving our efficiency and that has resulted in us being able to maintain our peak utilization levels which remain amongst the highest in the industry.
We remain hopeful of the overall industry prospects going forward aided by improvement in demand, competitive cotton prices and regulatory support towards the sector’s growth.”