The Shares of a top footwear manufacturer fell by 10 % after the company’s net profit decreased by 97.4 percent in the Second quarter results.
Campus Activewear Ltd is a small-cap company with a market capitalization of Rs 7,721.44 crores. The company shares were trading at Rs 252.95 a share, which decreased by 2.27 percent from the previous close price of Rs 264.05 a share.
Looking into the company’s Performance, Campus Activewear Ltd’s revenue decreased by 27 percent on a quarter-on-quarter basis from Rs. 353.97 crores in Q1FY24 to Rs.259.14 crores in Q2 FY24. Further, revenue decreased by 22.3 percent on a year-on-year basis from Rs. 333.91 crores Q2FY23 to Rs.259.14 crores Q2FY24.
Campus Activewear Ltd’s net profit decreased by 99 percent on a quarter-on-quarter basis from Rs. 31.48 crores in Q1FY24 to Rs. 0.32 crores in Q2FY24. Further, net profit decreased by 97 percent on a year-on-year basis from Rs. 14.54 crores Q2FY23 to Rs.0.32 crores Q2FY24.
Campus Activewear Ltd’s reported return ratios in the recent financial year with a return on equity (ROE) of 24.11 percent and a return on capital employed (ROCE) of 27.7 percent.
Campus Activewear Ltd’s recent shareholding pattern, The Promoters of the Company own 73.88 percent while Retail shareholders own a 12.05 percent stake in the company and Foreign Institutional Investors own a 9.25 percent stake.
The company reported a decrease in the debt-equity ratio from 0.41 percent in FY 2022-23 to 0.33 percent in FY 2023-24.
Campus Activewear Ltd is among the biggest sports and athleisure footwear brands in India. The company produces and sells a range of shoes, including running shoes, walking shoes, casual shoes, and floaters.
Written By – Abhishek Singh
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