Campus Activewear fell 5.97% to Rs 492.05 after the footwear maker's standalone net profit fell 48.5% to Rs 14.54 crore on 22% increase in net sales to Rs 333.17 crore in Q2 September 2022 over Q2 September 2021.
The company clocked a profit before tax (PBT) of Rs 19.56 crore in the second quarter, down 48.4% over PBT of Rs 37.92 crore posted in the same quarter last year.EBITDA fell 20.2% to Rs 44.18 crore in in Q2 September 2022. EBITDA stood at 13.3% in Q2 FY23, lower than 20.3% in Q2 FY22.
Total expenses rose 32.9% year on year to Rs 306.70 in Q2 FY23. Cost of raw materials consumed was at Rs 254.27 crore (up 49.3% YoY) and employee expenses stood at Rs 21.94 crore (up 40.9% YoY). Finance cost surged 63.8% YoY to Rs 7.65 crore in Q2 FY23.
The company's revenue from operations increased 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 average selling price (ASP) stood at Rs 608 in Q2 FY23 vis-vis Rs 577 in Q2 FY22. All channels, including trade distribution, e-commerce and exclusive retail demonstrated profitable growth.
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.
Net cash from operating activities stood at Rs 31.36 crore in six months ended 30 September 2022 compared with Rs -31.82 crore in six months ended 30 September 2021.
Commenting on the results and performance, Campus Activewear's CEO Nikhil Aggarwal said, "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."
Campus Activewear is India's largest sports and athleisure footwear brand in terms of value and volume. It covers more than 85% of the total addressable market for sports and athleisure footwear in India. The company owns and operates 5 manufacturing facilities across India with an installed annual capacity for assembly of 34.8 million pairs as on 30 September 2022.
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