Campus Activewear Ltd announces Q2FY23 earnings

Campus Activewear Limited, India's largest omnichannel sports and athleisure footwear brand, has announced its results for the quarter and half year ended on September 30, 2022.

Financial Highlights - Q2 FY23

- Revenue from operations increased by a robust 22.0% YoY to INR 3,331.7 Mn in Q2 FY23 despite tepid demand and inflationary headwinds.

- The sales volume stood at 5.5 million pairs in Q2 FY23 as against 4.7 million pairs in Q2 FY22, thereby registering 15.9% YoY volume growth

- Campus Activewear's ASP stood at INR 608 in Q2 FY23 vis-à-vis INR 577 in Q2 FY22.

- All channels, including Trade Distribution, E-Commerce and Exclusive Retail demonstrated profitable growth

- EBITDA stood at INR 441.8 Mn; EBITDA margins at 13.3% in Q2 FY23

- PAT stood at INR 145.4 Mn in Q2 FY23

- The Franchise stays focused on its holistic agenda of profitable growth, portfolio premiumization and market share enhancement with sustained investments towards brand building and business expansion.

Financial Highlights - H1 FY23

- Revenue from operations increased by 64.3% YoY to INR 6,708.8 Mn in H1 FY23 supported by favourable demand from across all segments coupled with robust growth across D2C channel

- The sales volume stood at 11.1 million pairs in H1 FY23 as against 7.0 million pairs in H1 FY22, thereby registering 57.0% YoY volume growth

- Campus Activewear's ASP stood at INR 606 in H1 FY23 vis-à-vis INR 579 in H1 FY22.

- EBITDA grew by 47.1% YoY to INR 1,064.2 Mn; EBITDA margins declined by 186 bps YoY to 15.9% in H1 FY23 on account of relatively higher raw material inflation.

- PAT grew by 48.6% YoY to INR 458.6 Mn in H1 FY23; PAT margin stood at 6.8% in H1 FY23

Commenting on the results and performance, Campus Activewear's CEO Mr. Nikhil Aggarwal said, "The Company continues to leverage its strong brand recall including array of choices across styles, colour palettes, price points and an attractive product value proposition of bestsellers making Campus Activewear the preferred sports and athleisure footwear brand amongst consumers. The Company launched 100 styles in H1 FY23 including the new 'Autumn-Winter' collection which continues to attract new customers and business partners. Further, the Company plans to launch 200 new shoe styles by the end of FY23."

"Campus Activewear is expected to benefit from Campus AI Private Limited merger with the Company on account of cost rationalisation, simplification of business operations delivering customer satisfaction. It has simplified the corporate structure making it lean and agile for rapid future growth.

Campus Activewear is well placed to benefit from the growing Indian sports and athleisure footwear industry with its omnichannel experience focused on premiumization and product diversification across product segments and categories."

Shares of Campus Activewear Limited was last trading in BSE at Rs. 523.30 as compared to the previous close of Rs. 517.45. The total number of shares traded during the day was 92470 in over 4071 trades.

The stock hit an intraday high of Rs. 527.10 and intraday low of 503.25. The net turnover during the day was Rs. 47567409.00.

Source : Equity Bulls

Keywords

CampusActivewear INE278Y01022 Footwear Q2FY23 H1FY23 ResultUpdate