This Smallcap Footwear stock, which is engaged in the manufacturing and distribution of a variety of footwear like Running Shoes, Walking Shoes, Floaters, Casual Shoes, Slippers, Sandal, and Flip Flops, surged upto 9 percent after reporting net profit growth of 225 percent quarter on quarter.
Share Price Movement
With a market capitalization of Rs. 8,590.86 Crores, the shares of Campus Activewear Ltd (NSE:CAMU) were up by 9.32 percent in the day’s trade touching a day’s high of Rs. 287.80 per share.
The stock reiterated from the day’s high and was trading at Rs. 281.30 which is 6.86 percent higher than the previous closing price of Rs. 263.25 apiece. It has delivered a return of 12 percent which has outperformed the Nifty Index in the past year.
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Q3FY25 Financial Highlights
The company’s stock was in focus after reporting financial results for the quarter ending December 2024, Campus Activewear consolidated revenue from operations has increased by 9 percent year on year from Rs. 472.01 crores in Q3FY24 to Rs. 514.80 crores in Q3FY25 and increased by 54.46 percent quarter on quarter from Rs. 333.29 crores in Q2FY25.
The consolidated net profit increased by 86.70 percent year on year from Rs. 24.89 crore in Q3FY24 to Rs. 46.47 crore in Q3FY25. As compared to Q2FY25, the company’s net profit has increased by 224.96 percent quarter on quarter from Rs. 14.30 crore.
Dividend Announcement
The Board of Directors on 11th February 2025, has declared an interim dividend of Rs. 0.70 per share on the face value of Rs. 5 per share for the FY25. The Record date for the dividend is fixed on Monday, 17th February 2025.
Management Commentary
Commenting on the results, the CEO of Campus Activewear, Nikhil Agarwal said “We have strengthened our product portfolio by launching 69 new articles during the quarter (234 during 9 month period) and new SKUs for women category, resulting in an improved product mix catering the diverse needs of the Indian families for every occasion. During the quarter, we have added 6 new stores across India, taking our total EBOs count to 290.”
Further, he said, “We would like to share key updates in our capital expenditure journey. The capex for the sole manufacturing unit at our Gannaur facility was completed in Q3FY25. Furthermore, we anticipate the completion of our Haridwar facility, dedicated for manufacturing state-of-the-art uppers, in Q4FY25, with commercial production projected to commence from March 25.”
Business Segment & Operational Highlights
The company recognizes its revenue from operations under Footwear and its related products as its sole segment. The Volume Sold for Q3FY25 was 76.2 lakh pairs and the average selling price stood at Rs. 675. Based on 9MFY25, Regionally they earn 39.7 percent from North India followed by 23.8 percent from West India. Channel-wise, 51.9 percent from Distribution continued by 37.6 percent from Online for 9MFY25.
Company Overview
Campus Activewear Limited was founded in 2008 and is one of India’s largest sports and athleisure footwear brands. They manufacture, distribute, and sell a wide variety of footwear and accessories for men, women, and kids through retail and wholesale networks.
Campus has over 300+ distributors and retailers in 650+ cities across India as of December 31, 2024. They hold a market share of ~17 percent in the Indian branded sports and athleisure footwear industry.
Written By Santhosh S
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