Sportking India Q1 FY25: Revenue Up 17.7%, PAT Jumps 75%
Sportking India Limited, a leading textile company in India, has announced strong financial results for Q1 FY25, ending 30th June 2024. The company reported a revenue of Rs. 634.0 crores, reflecting a 17.7% year-over-year (YoY) increase and a 3.7% rise quarter-over-quarter (QoQ). EBITDA surged by 48.3% YoY to Rs. 73.8 crores, with the EBITDA margin improving by 240 basis points to 11.6%. Profit After Tax (PAT) saw a significant jump of 75.1% YoY to Rs. 31.8 crores, with the PAT margin expanding by 165 basis points to 5.0%.
The quarter also saw a gross profit of Rs. 154.0 crores, up 30.1% YoY, and earnings per share (EPS) rising from Rs. 14.18 in Q1 FY24 to Rs. 25.05 in Q1 FY25. Operationally, Sportking’s total production volume was 20,311 metric tons, compared to 18,455 metric tons in Q1 FY24, and yarn sales volume increased to 19,964 metric tons from 17,396 metric tons. The company maintained a high capacity utilization rate of 95% for the quarter.
In addition, the Board of Directors approved a stock split, subdividing each equity share of Rs. 10 into 10 equity shares of Re. 1, subject to member approval.
Chairman and Managing Director, Munish Avasthi, expressed optimism about the company’s performance and future prospects. He said, “We continue to experience steady recovery, as evidenced by our consistent growth and margin expansion. The overall demand scenario is encouraging, with domestic market demand rising, driven by retailers and a recovery in local segments such as weaving and denim. Export market demand for yarns has strengthened, particularly in key markets like Bangladesh. Cotton yarn spreads have remained steady with some sequential improvement, largely due to stable cotton prices, which we expect to continue in the upcoming quarters. This price stability has enabled better purchasing and inventory management.”
He further added, “This was another strong quarter operationally, as we remain on the path to margin recovery. Our growth this quarter was volume-led, with production and sales volumes both registering year-on-year increases of 10% and 15%, respectively. We have maintained a dedicated focus on improving efficiency, resulting in peak utilization levels that are among the highest in the industry.”
He concluded by saying, “We are optimistic about the industry’s prospects, supported by improved demand, competitive cotton prices, and regulatory support for the sector’s growth.”
