Sportking India records robust export growth in Q3 FY25 amid marginal domestic demand

Sportking India Limited, a prominent name in India’s textile industry, has showcased its financial resilience yet again by achieving robust export performance during the third quarter of the fiscal year 2024-25 (Q3 FY25). Despite navigating challenging market conditions marked by subdued domestic demand, the company reported improved profitability and record exports, underlining its operational efficiency and strategic focus on global markets.

How Did Sportking India Perform Financially in Q3 FY25?

Sportking India’s financial results for Q3 FY25 demonstrated a steady performance, with revenue from operations rising to ₹609.7 crore, marking a modest 1.8% year-on-year (YoY) growth. A key driver of this growth was the company’s stellar export performance, which contributed approximately 57% of the quarterly revenue—an impressive 18.7% YoY growth in exports.

Profitability metrics also saw significant improvement. The company recorded an EBITDA of ₹57 crore, reflecting a 17.2% YoY increase, while the EBITDA margin expanded by 123 basis points (bps) to reach 9.4%. Similarly, Profit After Tax (PAT) grew by 18% YoY to ₹16.3 crore, with the PAT margin improving to 2.7% from 2.3% in the same quarter last year.

The company’s performance in the first nine months of FY25 also highlighted sustained growth. Revenue for the period stood at ₹1,895.4 crore, a 7.3% YoY increase, while PAT surged by a staggering 54% YoY to ₹73.1 crore.

What Operational Strategies Drove Export Growth?

Sportking India’s operational efficiency played a pivotal role in achieving record export growth during the quarter. The company reported total production volume of 20,336 metric tonnes (MT), with yarn sales reaching 21,214 MT. Despite these figures reflecting a slight dip in production compared to Q3 FY24, the company’s capacity utilization of 95% underscored its ability to optimize output and meet rising international demand.

Munish Avasthi, Chairman and Managing Director of Sportking India, credited this performance to the company’s long-standing relationships, quality-driven manufacturing, and strategic focus on export markets. According to Avasthi, “While demand in the domestic market remained subdued due to mixed consumer sentiment and inflationary pressures, our robust presence in export markets, particularly Bangladesh, enabled us to deliver our highest-ever quarterly export performance.”

What Role Did Market Trends Play in Shaping the Quarter?

The textile sector experienced mixed market dynamics during Q3 FY25. Inflationary pressures and elevated domestic cotton prices posed challenges for industry players. However, Sportking India managed to offset these headwinds by capitalizing on global opportunities. The company reported that cotton prices remained range-bound for most of the quarter, with a slight softening observed toward its end due to the onset of the new harvest.

Avasthi added that the alignment of domestic cotton prices with international benchmarks could further enhance competitiveness. The company remains optimistic about future growth prospects, citing stable cotton prices, improving demand, and favourable cotton-yarn spreads as critical factors that could drive performance in the coming quarters.

Why Is Sportking India a Key Player in the Textile Industry?

Founded in 1989, Sportking India has emerged as a leader in the Indian textile sector, with a reputation for producing high-quality yarns catering to both domestic and international markets. The company operates three state-of-the-art manufacturing facilities in India, equipped with advanced machinery to deliver superior grey and dyed yarns.

With its presence in over 30 countries, Sportking India has positioned itself as a global player, consistently meeting evolving customer demands. Its ability to navigate challenges, adapt to market trends, and maintain a robust export focus has solidified its reputation as a reliable partner in the global textile industry.

What Does the Future Hold for Sportking India?

Looking ahead, Sportking India is optimistic about sustaining its growth momentum. The company anticipates a recovery in domestic demand as inflationary pressures ease and consumer sentiment improves. Additionally, the alignment of domestic cotton prices with global rates is expected to further enhance profitability.

Sportking India’s strategic focus on export markets, particularly in regions like Bangladesh, which remains a robust growth driver, is likely to continue delivering strong results. The company’s commitment to operational excellence and customer-centric innovation positions it well to thrive amid an evolving economic landscape.