Small Cap Textile Stock Sets Record Date for Share Buyback, Premium is Up 33%
Sportking India Ltd. is valued at 941.53 Cr on the market. is a small-cap company that operates in the consumer discretionary industry. The company is a leading, highly integrated textile conglomerate in India with operations in retail, yarn, fabric, and apparel as well as exports to more than 30 other nations.
The company has said today in a stock exchange filing that “This is to let you know that, in accordance with Regulation 42 of the SEBI (Listing Obligation and Disclosure Requirements) Regulation, 2015 and Regulation 9(i) of the SEBI (Buy-Back of Securities) Regulations, 2018, the Board of Directors of the Company fixed Friday, February 10, 2023, as the record date for determining the eligibility and names of Equity Shareholders, who shall be entitled to participate.”
Sportking India Ltd. also disclosed today that its revenue for the third quarter of fiscal year 2013 was $513 million, up from $587 million for the third quarter of fiscal year 2012 and $552 million for the second quarter of fiscal year 2013. In comparison to Q3FY22’s EBITDA of 163 Cr and Q2FY23’s EBITDA of 49 Cr, the company’s EBITDA in Q3FY23 was 40 Cr. Comparatively to 28% in Q3FY22 and 9% in Q2FY23, EBITDA Margin reached 8% in Q3FY23. In comparison to 116 Cr in the quarter ended December 2021 or Q3FY22, the company reported a net profit of 18 Cr in the quarter ended December 2022 or Q3FY23, and a loss of 0.01 Cr in the quarter ended September 2022 or Q2FY23.
The company said “The installation of an additional rooftop solar power project with a 15 MW capacity at their current factory unit for captive consumption has been considered and approved by the Board. This project is anticipated to be operational by September 2023. 2nd phase capacity addition of 63,072 spindles for manufacturing of cotton compact yarn isgoing as per schedule and will be commissioned by Q4 of FY23.”
Regarding the Results, Mr. Munish Avasthi, Chairman & Managing Director said, ” Our strategic efforts were concentrated on increasing operational efficiency as the industry faced numerous headwinds, and we have made significant advancements in this area. Our board has approved the installation of another rooftop solar power project of 15 MW plant for captive consumption, which will aid us in lowering our power costs. Phase 1 capacity addition was successful and was completed in Q2. We haven’t yet noticed enough rationalization, despite the fact that raw material costs decreased this quarter and other input costs decreased from high levels. These pressures are being carefully watched. Overall, compared to the previous quarter, the country’s textile mills are operating at higher capacities, and we anticipate this trend to continue. The demand for textiles and apparel will stabilize as domestic cotton prices start to decline and retailers’ inventories in western nations start to decline.”
“I’m happy to report that, despite the difficulties, our team at Sportking was able to increase revenue by 7.1% over the previous nine months. As the year goes on, the macro environment will become more favorable. With the government’s support in the form of various schemes and FTAs, as well as the need for the west to lessen its reliance on China, the textile sector will experience a lot of positive developments in the upcoming quarters and years. We continue to befocused on our growth objectives and to capture the immense opportunity that the sector providesboth in India and abroad,” said Mr. Munish Avasthi.
Reference: https://www.livemint.com/market/stock-market-news/small-cap-textile-stock-sets-record-date-for-share-buyback-premium-is-up-33-11674919650690.html
