Sportking India Limited announced its financial performance for the quarter and year ended 31st March, 2025, along with strategic updates, in its investor presentation.
Key Financial Highlights:
- Q4 FY25:
- Revenue from Operations stood at ₹628.8 crore, up 2.9% YoY and 3.1% QoQ.
- EBITDA was ₹74.3 crore (11.8% margin), up 10.8% YoY and 30.3% QoQ.
- Profit After Tax (PAT) was ₹36.1 crore (5.7% margin), up 58.0% YoY and 121.8% QoQ.
- Gross Profit was ₹167 crore (26.6% margin).
- Export business contributed 58% of the quarter's revenue, marking the highest ever quarterly exports.
- Full Year FY25:
- Revenue from Operations reached ₹2,524.2 crore, a 6.2% increase from ₹2,377.1 crore in FY24.
- EBITDA was ₹262.9 crore (10.4% margin), a 28.2% increase from ₹205.2 crore in FY24.
- PAT was ₹109.3 crore (4.3% margin), a 55.3% increase from ₹70.3 crore in FY24.
- Gross Profit was ₹608.8 crore (24.1% margin).
- Export business contributed 52% of the year's revenue.
Operational Highlights:
- Capacity utilisation was consistently above 95% in Q4 FY25.
- Yarn Production and Sales Volumes were 21.0 '000 MT each in Q4 FY25.
Margin Recovery Triggers:
- Improved demand in key markets.
- Better Cotton-Yarn spreads.
- Rising demand from segments like Weaving, Denim, and retailers.
- Improved operational efficiency from recent de-bottlenecking.
- Expected stable cotton prices aiding inventory management.
- Additional approx. 2.4 MW of solar power capacity commissioned for captive consumption, enabling power cost savings.
Strategic Initiatives:
- Proposed Mergers: Received in-principle approval for the merger of Marvel Dyers and Processors Pvt Ltd (engaged in Dyeing, Printing & Finishing of Fabrics) and manufacturing facilities of Sobhagia Sales Pvt Ltd (engaged in Manufacturing and Retailing of Readymade Garments) with Sportking India Limited. This aims for forward integration and value addition by expanding into processed/dyed knitted fabric and garments.
- Strategic Investment: Proposed investment of ₹12.09 crore for a 26% equity stake in Evincea Renewable Two Pvt. Ltd., a special purpose vehicle. The SPV will commission a 40.3 MW solar power plant to supply power to the company's Bathinda and Ludhiana units for 25 years, expected to start in tentatively 15 months and result in 10-12% power cost savings.
Sector Outlook:
- The company sees the Indian textile sector at an inflection point, ready to capitalize on changing global trade patterns (China +1 strategy).
- Strong domestic factors like a large working population and low costs, combined with government initiatives (FTAs, PM Mitra Yojana, RoSCTL, PLI schemes), support export growth, with Indian textile exports expected to breach US $100 billion by FY30.