Campus Activewear – betting on the India Consumption Theme

Campus Activewear has reported its financial performance for the second quarter (Q2) and first half (H1) of the fiscal year 2023-24 (FY24):

Financial Performance for Q2 FY24:

• Revenue from Operations: Campus Activewear recorded revenue of INR 258.7 Crores in Q2 FY24. This figure reflects a decline compared to INR 333.2 Crores in Q2 FY23. The drop in revenue was attributed to subdued consumer sentiments and a challenging macroeconomic environment.
• Sales Volume: The company sold 3.9 million pairs of footwear in Q2 FY24.
• Average Selling Price (ASP): The Average Selling Price for Campus Activewear’s products was INR 658 in Q2 FY24, up from INR 608 in Q2 FY23.
• EBITDA: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter reached INR 24.9 Crores, with an EBITDA margin of 9.6%.

Financial Performance for H1 FY24:

• Revenue from Operations: The first half of FY24 (H1) generated INR 612.4 Crores in revenue from operations.
• Sales Volume: Campus Activewear sold 9.6 million pairs of footwear in H1 FY24.
• Average Selling Price (ASP): The Average Selling Price for their products was INR 641 in H1 FY24, compared to INR 606 in H1 FY23.
• EBITDA: EBITDA for H1 FY24 reached INR 91.3 Crores, with an EBITDA margin of 14.9%.
• Profit After Tax (PAT): The company reported a PAT of INR 31.8 Crores in H1 FY24, with a PAT margin of 5.2%.

The CEO has acknowledged the subdued performance during the quarter, which was influenced by reduced sales volumes due to a challenging macroeconomic environment and channel inventory correction. He also outlined the company’s strategic focus for the future:

• Strengthening Business Objectives: The company aims to continue driving its long-term business objectives and enhance execution strategies, with a particular focus on key geographies in North and Central India.
• Expansion Plans: Campus Activewear intends to make further inroads into key Western and Southern states in India.
• Product Innovation: During the quarter, the company launched Campus ‘Air Turbo,’ designed for the Indian market and featuring thermal management technology to enhance the overall footwear experience.
• Brand Positioning: Campus Activewear continues to strengthen its brand positioning, engage with its target audience, and connect with consumers through innovative 360-degree marketing strategies.