SBC Exports Reports Strong Q2 Results And Expansion Plans
SBC Exports Ltd, a prominent player in the hosiery garments sector, has released its financial results for Q2 and H1 of FY25, demonstrating significant growth.
In Q2 FY25, the company reported a 56.54% year-on-year (YoY) increase in standalone revenue, reaching Rs 4,849.55 lakh, while net profit after tax (PAT) surged by 63.21% to Rs 315 lakh, resulting in PAT margins of 6.5%. For H1 FY25, standalone revenue climbed 30.97% YoY to Rs 10,555.13 lakh, with PAT jumping 200% to Rs 696 lakh.
On a consolidated basis, Q2 revenue soared by 87.34% YoY to Rs 6,598.36 lakh, and H1 consolidated revenue rose 49.52% to Rs 13,170.7 lakh. The garment division’s growth was fueled by an expanded product portfolio, improved distribution and enhanced brand visibility, aided by the appointment of television celebrity Saurabh Raaj Jain as brand ambassador.
SBC secured export orders worth Rs 50 crore for FY25, reflecting its growing international presence. The management noted that the working capital cycle, temporarily extended due to increased operations, is expected to stabilize in Q3 FY25.
Looking ahead, SBC plans to construct a state-of-the-art garment manufacturing facility in Ghaziabad aimed at export markets, featuring modern stitching, printing and packaging units, alongside a display centre and administrative office. The project is projected for completion within 18 months and will be funded through a rights issue of up to Rs 5,000 lakh for existing shareholders.
The company anticipates 30% revenue growth in Q3 FY25, driven by the festive season, expanded product offerings and higher consumer spending. Management aims to maintain EBITDA margins between 10-13% through cost control and scaling operations.
