Ludhiana, January 29, 2025 – Sportking India Limited (BSE: 539221 | NSE: SPORTKING) has announced its Q3 FY25 financial results, highlighting consistent revenue growth, margin recovery, and record-high export performance. The company reported ₹1,895 crore in revenue for the nine-month period, marking a 7% year-on-year (YoY) increase, while exports contributed 50% of total revenue.
Financial Highlights
Q3 FY25 Performance (YoY Growth)
- Revenue from Operations: ₹610 crore (up 2% YoY).
- Gross Profit: ₹148 crore (24% margin).
- EBITDA: ₹57 crore (9% margin).
- Profit After Tax (PAT): ₹16 crore (3% margin).
- Export Revenue Contribution: 57% of total revenue, achieving highest-ever quarterly exports.
Nine-Month FY25 Performance (YoY Growth)
- Total Revenue: ₹1,895 crore (up 7% YoY).
- Gross Profit: ₹441 crore (23.3% margin).
- EBITDA: ₹189 crore (10% margin).
- PAT: ₹73 crore (4% margin).
- Export Revenue Contribution: 50% of total revenue.
Key Operational Metrics
- Production Volume: 20.3 thousand MT of yarn.
- Capacity Utilization: 95%+ across all units.
- Revenue Growth from Exports: 14% increase YoY.
- Major Growth Segments: Weaving and denim sectors, with improving demand from retailers.
Margin Recovery & Business Strategy
1. Strong Margin Recovery
- Gross Margin increased to 24.3% in Q3 FY25, up from 22.4% in Q3 FY24.
- EBITDA Margin improved to 9.4%, compared to 8.1% last year.
- PAT Margin rose to 2.7%, reflecting 37 bps improvement YoY.
2. Expansion & Forward Integration
- Ongoing merger of Marvel Dyers & Processors and Sobhagia Sales Pvt. Ltd. to strengthen Sportking’s fabric processing and garment manufacturing capabilities.
- Increased focus on value-added textile products, moving up the supply chain from yarn to fabric and garments.
3. Sustainability Investments
- Investment in 40.3 MW Solar Power Plant (₹12.09 crore equity commitment).
- Projected 10-12% savings in power costs once operational within 15 months.
- Existing 25MW rooftop solar project fully operational for captive consumption.
Sector & Market Outlook
1. Indian Textile Industry Growth
- India’s textile exports projected to exceed $100 billion by FY30, driven by global demand shifts.
- China+1 strategy benefiting Indian manufacturers.
- Government incentives: Production Linked Incentive (PLI) schemes, Free Trade Agreements (FTAs), and PM Mitra Yojana.
2. Raw Material & Demand Trends
- Cotton prices stabilizing, aiding efficient inventory management.
- Improved cotton-yarn spreads, leading to better profitability.
- Demand growth from key segments like denim, weaving, and global apparel brands.
Investor Insights & Future Prospects
- Continued focus on exports and premium yarn products.
- Strategic investments in fabric and garment production for better margins.
- Strengthened position in the global market with expanding customer base.
- Stable financials with improved profitability and operational efficiency.