Ludhiana’s leading vertical integrated company Sportking India’s net profit slumped to Rs 0.01 crore in Q2 of current fiscal as against net profit of Rs 110.17 crore in Q2 of previous fiscal.
The company is known for grey and dyed textile yarns as well as final products including men, women and kidswear. It also has a strong retail presence in India.
The company’s net sales rose by 5.4 per cent year-on-year to Rs. 552.14 crore in Q2 of FY ’23 and Profit before tax (PBT) tumbled to 95.5 per cent Y-o-Y to Rs. 6.62 crore in Q2 of FY ’23.
Looking at the second quarter as a challenging one due to higher input costs, inflationary pressures and low demand for clothing and apparel, Munish Avasthi, CMD of the company commented on the results, “Textile mills were operating at less than 50 per cent capacity because of high cotton prices and low demand. We anticipate that the cotton prices and macroeconomic issues will ease in the upcoming quarters, which will improve the margins.”
The company has successfully commissioned the first phase capacity addition of 40,800 spindles for the manufacturing of Polyester cotton yarn at Bathinda unit and the second phase of capacity addition of 63,072 spindles for the manufacturing of cotton compact yarn as per the schedule and these will be commissioned by Q4 of FY ’23.
“We are confident of achieving our strategic growth objectives by maintaining prudent financial practices, better operating leverage, revival in demand and improvement in realisation going forward,” said Munish.
