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Earnings Call Transcript

Campus Activewear Earnings Call Transcript: Key Takeaways

Campus Activewear delivered 12.2% revenue growth despite accounting transitions and price hikes, masking an underlying performance impacted by one-time channel shifts and high school shoe volumes.

Guidance and delivery
Management target Revenue 15.0% FY27
Highlights
Revenue growth12.2% growth; core categories up 5% underlying ASP.
MarginsEBITDA margins stable at 15.9% despite rising labor costs.
Order bookRecord orders from distributor meet provide strong seasonal visibility.
Demand visibilityPositive festive outlook backed by record July production.
Management confidenceConfident, highlighting resilient brand strength and operational efficiency.

Growth

Revenue grew 12.2% with 11.7% volume growth; PAT surged 17.7% despite temporary ASP dilution from school shoe mix.

Outlook

Management targets mid-double-digit growth for FY27, with ASP expected to recover from Q2 onwards.

Risks

ASP dilution persists due to product mix; inventory build-up ahead of festive season risks working capital stress if demand falters.

Last quarter's promises, checked

Delivered

  • Guided 17-19% EBITDA margin → delivered 17.5% (= BEAT)
  • Guided Pant Nagar production commencement → delivered 2L pairs/month (= BEAT)
  • Guided premiumization/ASP growth → delivered 7% YoY increase to INR 683 (= BEAT)

Partly delivered

  • Guided inventory correction → delivered 5-6 day increase in inventory days (= PARTIAL)

Missed

  • Guided aggressive retail expansion → delivered steady 300 stores/flat network (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: CAMPUS. Summary written with AI assistance from the document.

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Campus Activewear Ltd: key numbers

Share price
₹209.99
Market cap
₹6,419 Cr
Revenue (annual)
₹1,774 Cr
Net profit (annual)
₹150.1 Cr
P/E (TTM)
41.7×Sector 67.6×
Promoter holding
72.08%-0.02% QoQ
FII holding
6.03%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Campus Activewear received an ESG rating of 61 from CRISIL ESG. The rating was determined independently based on public information.