Sportking India: Crisil Ratings has upgraded its rating on the long-term bank facilities

  • Sportking India FY25  PAT growth of 55.3%
  • Key Financial Highlights – FY25:
  • Revenue from operations stood at Rs. 2,524.2 Crs for FY25, up 6.2% Y-o-Y. 
  • Exports contributed ~ 52% to overall revenue in FY25 registering a growth of 15% on a yearly basis ➢ EBITDA for FY25 was Rs. 262.9 Crs – an increase of 28.2% YoY. 
  • EBITDA Margin for the financial year improved by 179 bps on a yearly basis to reach 10.4%
  • Profit After Tax for the financial year was Rs. 109.3 Crs – registering a growth of 55.3% YoY. 
  • PAT Margin was 4.3% and expanded by 137 bps on a yearly basis
  • Commenting on the results, Mr. Munish Avasthi, Chairman & Managing Director said, “We are pleased to report robust growth across all key financial metrics for FY25. Our Q4 performance continued the strong trajectory established in the earlier quarters, with strong export revenue growth and margin expansion due to softer input costs contributing to a 58% year-on-year increase in profit after tax. Solid business performance generated significant free cash flow which was utilized in paring down debt further strengthening our balance sheet and enabling savings on interest outlay. We believe in creating value for all stakeholders including our shareholders. To this effect, it pleases me to report that the Board, subject to shareholder approval, has declared dividend of Rs. 1 per equity share for the financial year 2024-2025. Exports form a significant part of our business and over the years we have consistently demonstrated resilience, even achieving our highest quarterly export revenue in the current quarter. Our well-established presence in both domestic and international markets positions us to effectively navigate dynamic market conditions—whether that means meeting rising domestic demand or serving as a reliable sourcing partner for global customers. The domestic operating environment continues to be favourable, supported by healthy demand trends and stable input costs, which have helped maintain yarn spread levels. Additionally, policy support from the government through FTAs with other countries, and initiatives like the development of integrated textile parks further strengthen the sector's outlook. This combined with our strength in efficient manufacturing, prudent resource management, and a steadfast commitment to quality, we remain confident in sustaining our growth momentum into the next financial year.”  
  • The domestic operating environment continues to be favourable, supported by healthy demand trends and stable input costs, which have helped maintain yarn spread levels. 
  • Additionally, policy support from the government through FTAs with other countries, and initiatives like the development of integrated textile parks further strengthen the sector's outlook  
  • The Board has, subject to shareholder approval, recommended a Final Dividend of Rs. 1/- per equity share amounting to Rs. 12.71 Crores
  • About Sportking India Ltd: Established in 1989, Sportking India Ltd emerged as one of India’s leading textile in company & owns 3 state-of-the-art manufacturing facilities in India equipped with latest machinery, produces yarns that are a benchmark in quality. The company produces well diversified range of grey and dyed textile yarns to cater to the demands of weaving and knitting industry in domestic as well as international markets. With presence in more than 30 countries, Sportking India Ltd. is representing India on a world stage with a commitment to deliver superior quality products among evolving trends in customer preferences.    



Sportking India: Crisil Ratings has upgraded its rating on the long-term bank facilities 
  • Crisil Ratings has upgraded its rating on the long-term bank facilities of Sportking India Limited (Sportking) to ‘Crisil A+/Stable’ from ‘Crisil A/Positive’; The short-term rating has been reaffirmed at ‘Crisil A1’.
  • The rating upgrade reflects the improvement in the business risk profile of Sportking, with fiscal 2025 revenue reaching above Rs. 2500 crores and operating margin improving to 10.6%, from ~10.1% in fiscal 2024. 
  • The revenue of the company is expected to increase by 1-3% to ~Rs. 2600 crores in fiscal 2026 as it is operating near full capacity. 
  • Further, the operating margins are expected to remain healthy at 10.5-11.5% in fiscal 2026, supported by stable spreads, and minimal inventory losses. 
  • The margins are expected to improve to 11-12% over the medium term, supported by additional use of solar power, resulting in lower power costs. 
  • Accordingly, the Net Cash Accruals for the company are expected to remain at ~Rs. 200-220 crores for fiscal 2026.
  • Additionally, the financial risk profile continues to remain healthy with debt/ebitda at 2.17 times and interest cover of 5.7 times fiscal 2025. 
  • The overall debt levels for the company had reduced significantly, in fiscal 2025 driven by lower short-term debt on account of significant procurement by CCI, obviating the need for holding inventory. 
  • This is expected to normalize this fiscal and debt is accordingly expected to remain around Rs. ~650-700 crores for fiscal 2026. 
  • With repayment obligations of Rs. 70-80 crores over the next 2-3 years the debt is expected to reduce to Rs. 500-580 crores over the medium term. 
  • However, given the capacity utilization remains at ~95%, any significant debt funded capex will remain a key monitorable.
  • The debt protection metrics of the company are expected to remain comfortable with the interest coverage and net cash accrual to adjusted debt (NCAAD) ratios expected to improve to 7-9 times and 0.3-0.4 times, respectively, in the medium term from 5.7 times and 0.33 time, respectively, in fiscal 2025. 
  • Moreover, gearing and total outside liabilities to tangible networth (TOL/TNW) ratios are also likely to improve from 0.58 and 0.76 times, respectively, as on March 31, 2025 to below 0.6 and 0.8 time, respectively, in the medium term. 
  • The debt/ebitda is anticipated to be below 2.5 times in the medium term, compared to 2.17 times in fiscal 2025.
  • These strengths are partially offset by the large working capital requirement and susceptibility to volatility in raw material prices and foreign exchange (forex) rates.

Sportking India Limited announces a buyback of upto 5,80,000 fully paid equity shares at a maximum price of Rs. 950/- per share
  • EBITDA for 9M FY23 stood at Rs. 223 crores. EBITDA margin stood at 13%     (  28%    last yr)
  • The Board has considered and approved the installation of additional Rooftop Solar PowerProject of about 15 MW Capacity at their Existing Factory Unit for captive consumption andsame is likely to commissioned by September 2023. 
  • 2nd phase capacity addition of 63,072 spindles for manufacturing of cotton compact yarn is going as per schedule and will be commissioned by Q4 of FY23
  •  Commenting on the Results, Mr. Munish Avasthi, Chairman & Managing Director said, “ As the industry faced multiple headwinds, our strategic efforts were focused on improving operational efficiency and we have made substantial progress.
  • While raw material costs softened this quarter and other input costs also corrected from high levels, we are yet to see sufficient rationalization. We are monitoring these pressures closely. 
  • Overall, the textiles mills in the country are functioning at increased capacity compared to the last quarter and we expect them to function at higher capacities going forward. 
  • Some softening in domestic cotton prices and reduced inventories with retailers in western countries will bring stability to the demand in textile and apparel industry.
  • The improving macro environment will be more favorable as we progress through the year. 
  • Textile sector is going to see a lot of positive developments in the coming quarters and years with support from the government in form of various schemes and FTAs;and with the need of the western countries to reduce dependency on China. We continue to be focused on our growth objectives and to capture the immense opportunity that the sector provides both in India and abroad.”  

Sportking India: Profit After Tax for 9M registering a growth of 54.0% YoY

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