Textile Stock engaged in manufacturing cotton yarn, fabrics, and many more with Jockey, Ikea, H&M, and Zara as customers jumped 19 percent in the day’s trade upon declaring its Q1FY25 results along with dividend and split of equity shares of the company.
Price Action
With a market capitalization of Rs. 1,474 Crores, the shares of Sportking India Limited were trading at Rs. 1,174.80 per equity share, up 18 percent from its previous day’s close price of Rs. 998.30.
Q1Y25 Results
Its revenue from operations grew by 18 percent YoY from Rs. 538.92 Crores in Q1FY24 to Rs. 634.04 Crores in Q1FY25 and it grew by 4 percent QoQ from Rs. 611.17 Crores in Q4FY24 to Rs. 634.04 Crores in Q1FY25.
Its Net Profit grew by 75 percent YoY from Rs. 18.17 Crores in Q1FY24 to Rs. 31.82 Crores in Q1FY25 and it grew by 39 percent QoQ from Rs. 22.86 Crores in Q4FY24 to Rs. 31.82 Crores in Q1FY25.
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Dividend
Further, the Board of Directors of Sportking India Limited has fixed August 10, 2024, as the Record date for issuing the Final Dividend of Rs. 5 per equity share with a face value of Rs. 10 per share for the financial year 2024-25.
Stock Split
In Addition, the Board of Directors of the company has approved the sub-division/split of equity shares of the company in the ratio of 1:10 where one equity share with a face value of Rs. 10 will be split into ten equity shares of the company with a face value of Rs. 1 each.
Key Operational Highlights of the Quarter
The Total Production Volume stood at 20,311 MT for the quarter compared to 18,455 MT in Q1 FY24, the Yarn Sales Volume for Q1 FY25 stood at 19,964 MT compared to 17,396 MT in Q1 FY24 and the Capacity Utilization was at 95 percent for Q1 FY25.
Chairman’s Message Regarding Company’s Performance
Commenting on the results, Mr. 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 the recovery of local segments such as weaving and denim. Export market demand for yarns garnered strength in our key markets 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 the prices of cotton have enabled better purchase and inventory management.
It was another strong quarter on the operational front as we remain on the path to margin recovery. Growth for the quarter was volume led with our production and sales volumes both registering a growth of 10 percent and 15 percent 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 toward the sector’s growth.”
About the Company
Sportking India Limited is a textile manufacturing company engaged in the manufacturing of cotton, cotton polyester blended, Synthetic Yarn, acrylic-blended yarn, fabrics, garments and many more. It has a diversified product range with 3 state of the art manufacturing facilities and a presence across 30+ countries.
It has a strong customer base, with well-known marquee clients such as Jockey, Ikea, H&M, Zara, Cotton USA, S. Oliver, Sailor, and many others. As of FY24, it generated 53 percent of its revenue from Exports and 47 percent from domestic markets.
Written by: Bharath K.S
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