Tirupur-based S P Apparels Ltd, a leading manufacturer and exporter of knitted garments for children reported a 33 percent increase in net profit to Rs 18 crore ($2.2 million) for the third quarter ended December 2023, as against Rs 13 crore in the year-ago period.
The company’s revenue for the quarter rose to Rs 252 crore, as against Rs 251 crore in the corresponding period of the previous fiscal year.
Commenting on the Q3 results, P Sundararajan, chairman managing director of S P Apparels in a statement said, “Our garment segment reported an adjusted EBITDA of Rs 39 crore in the same quarter with EBITDA margin amounting to 17.2 percent. We are glad to report an increase in utilization levels escalating from 74 percent in Q3 FY23 to 78 percent in Q3 FY24. However, our revenue may be flat year on year despite the reduction in unit realization.”
“About the spinning division during Q3 FY24 we have seen a rebound in our spinning segment compared to the same period last year. The margins have largely stabilized due to a drop in cotton prices enabling us to achieve break even in this segment. We are optimistic that this improved performance and trend towards stability will continue in the future quarters,” he added.
S P Apparels currently operates 21 manufacturing facilities in Tamil Nadu. It owns the women’s wear brand, Natalia and has the exclusive right to manufacture, distribute and market products under the ‘Crocodile’ brand in India.
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