Small cap textile stock sets record date for share buyback, premium jumps 33%

The company said in a stock exchange filing today that “This is to inform you that in accordance with the provisions of Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Regulation 9(i) of SEBI (BY)-Back Off Securities) Regulations, 2018, the Board of Directors of the Company at its meeting held on the 28th January, 2023 fixed Friday, the 10th February, 2023 as the record date for the purpose of determining the eligibility and names of the Equity Shareholders, viz. ,80,000 will be entitled to participate in the proposed offer for buyback of fully paid-up Equity Shares 10 at the cost of each company 950/- per equity share.”

Sportking India Limited also today announced that its revenue has reached 513 cr in Q3FY23 against 587 Cr in Q3FY22 and 552 crore in Q2FY23. Company’s EBITDA stood at As compared to 40 Cr in Q3FY23 163 Cr in Q3FY22 and 49 crores in Q2FY23. EBITDA margin reached 8% in Q3FY23 as against 28% in Q3FY22 and 9% in Q2FY23. The company posted a net profit of 18 crore in the quarter ending December 2022 or as against Q3FY23 116 crore in the quarter ending December 2021 or Q3FY22 and 0.01 crore in the quarter ending September 2022 or Q2FY23.

The company said, “The Board has considered setting up an additional rooftop solar power project of about 15 MW capacity at its existing factory unit for captive consumption and is likely to be commissioned by September 2023. 63,072 spindles for the manufacture of cotton The second phase of capacity expansion of Compact Yarn is progressing as per schedule and will be commissioned by Q4 FY23.”

Commenting on the results, Mr. Munish Awasthi, CMD said, “As the industry faced several headwinds, our strategic efforts were focused on improving operational efficiency and we have made substantial progress. In addition to the successful Phase 1 capacity addition in the second quarter, our Board has approved the installation of another rooftop solar power project of a 15 MW plant for captive consumption which will help us reduce our power costs. While raw material costs moderated in the quarter and other input costs also improved from higher levels, we are yet to see substantial rationalization. We are closely monitoring these pressures. Overall, textile mills in the country are operating at increased capacity as compared to the previous quarter and we expect them to operate at higher capacity going forward. Some softening of domestic cotton prices and reduction in stocks with retailers in western countries will stabilize demand in the textile and apparel industry.”

“I am pleased to report that despite the challenges, our team at SportKing posted 7.1% revenue growth on a 9 million year-over-year basis. An improving macro environment will be more favorable as we progress through the year. Various With support from the government in the form of schemes and FTAs ​​and with the need of western countries to reduce dependence on China, the textile sector is set to witness a lot of positive developments in the coming quarters and years. and continue to capture the immense opportunities offered by this sector both in India and abroad,” said Mr. Munish Awasthi.

Shares of Sportking India closed on the NSE on Friday 709.45 each level, down 0.11% from the previous close 710.20. Buyback per share at current market price The company’s 950 represents an upside premium of 33.90%.