Any current/future new fundraising through debt or equity?

The transcript does not mention any current or planned fundraising through debt or equity. The company’s net debt as of September 30, 2023, stood at INR 162 crores, a marginal increase from INR 157 crores in March 2023. The net debt to EBITDA ratio is stable at 0.7 for H1 FY24 versus 0.6 in FY23, indicating controlled leverage. The management has not provided any forward-looking guidance related to raising new capital. Focus appears to be on recalibrating business strategies and maintaining healthy financial metrics rather than raising funds. There is no explicit indication or announcement abo

Any current/future capex/capital investment/strategic investment?

The company mentioned a peak turnover capacity of INR 2,500 crores without requiring any additional CAPEX, indicating no immediate large capital expenditure plans. There was no specific mention of upcoming or ongoing capital expenditures or strategic investments in the discussed sections. Focus appears to be on brand building, market expansion, product premiumization, and improving distribution rather than heavy capital investments. The company is emphasizing marketing investments and new product development, but these are likely operational expenses rather than capital investments. They plan

Future growth expectations in sales/revenue/volumes?

Q2FY24 saw a volume decline due to subdued demand in Northern markets and exit from some platforms (Udaan, AJIO), but inventory corrections are largely completed. Normalized growth expected from Q3FY24 onwards with a positive outlook for Q3 and Q4. Capacity utilization peak turnover can reach INR 2,500 crores without additional CAPEX. Current manufacturing capacity is about 35 million pairs; last year sales were approximately 25 million pairs, with volumes trending similarly. Focus on growing market share, especially in Western and Southern markets, which remained flat in Q2 despite poor macro

Future growth expectations in earnings/operating earnings/profits/EPS?

The company does not provide forward-looking guidance publicly but has shared a positive outlook for Q3 and Q4 FY24. They expect normalized growth and a meaningful quarter starting Q3FY24, with recovery largely in place after inventory corrections. Peak turnover capacity is around INR 2,500 crores without additional CAPEX, with annual capacity of 35 million pairs and current production close to 25 million pairs. Gross margins are healthy, with ambitions to maintain a high-teen to 20% margin profile, balancing growth and margin sustainability. Focus remains on increasing market share across key

Current/ Expected Orderbook/ Pending Orders?

The transcript on pages 3 to 17 of the provided document does not explicitly mention the current or expected order book or pending orders for the company. The discussion primarily revolves around market strategy, inventory correction, channel performance, geographic focus, and sales volumes. No specific figures or commentary related to order backlog or pending orders were disclosed during the Q&A session. Focus areas highlighted include inventory management in certain states (UP, Bihar, Rajasthan), channel mix adjustments, and market share growth in online marketplaces. The company emphasizes

Campus Activewear LtdQ3 FY24

Campus Activewear Ltd Q3 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹218P/E: 46.3Market Cap: ₹6.9K Cr

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

0 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Q2FY24 saw a volume decline due to subdued demand in Northern markets and exit from some platforms (Udaan, AJIO), but inventory corrections are largely completed.
→Normalized growth expected from Q3FY24 onwards with a positive outlook for Q3 and Q4.
→Capacity utilization peak turnover can reach INR 2,500 crores without additional CAPEX.
→Current manufacturing capacity is about 35 million pairs; last year sales were approximately 25 million pairs, with volumes trending similarly.
→Focus on growing market share, especially in Western and Southern markets, which remained flat in Q2 despite poor macro conditions.
→Eastern market growth targeted through new product categories like outdoor footwear.
→Channel strategy blends MBO, EBO, and distribution to penetrate markets.
→Online marketplaces (e.g. Flipkart) gaining share; market share on Flipkart rose from 5% to 8.5% during Big Billion Day sales.
→Premiumization strategy maintained, with no current plans for lower-priced segments or athleisure expansion.

Margin guidance

Category 3

→The company does not provide forward-looking guidance publicly but has shared a positive outlook for Q3 and Q4 FY24.
→They expect normalized growth and a meaningful quarter starting Q3FY24, with recovery largely in place after inventory corrections.
→Peak turnover capacity is around INR 2,500 crores without additional CAPEX, with annual capacity of 35 million pairs and current production close to 25 million pairs.
→Gross margins are healthy, with ambitions to maintain a high-teen to 20% margin profile, balancing growth and margin sustainability.
→Focus remains on increasing market share across key markets (West, South, and East), supported by strong omni-channel presence, brand building, and product premiumization.
→Initiatives in cost-saving, supply chain improvements, and channel integration are expected to positively impact profitability going forward.
→The company sees FY24 as a transition year but remains committed to long-term value creation and market share growth.

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Fundraise plans

→The transcript does not mention any current or planned fundraising through debt or equity.
→The company’s net debt as of September 30, 2023, stood at INR 162 crores, a marginal increase from INR 157 crores in March 2023.
→The net debt to EBITDA ratio is stable at 0.7 for H1 FY24 versus 0.6 in FY23, indicating controlled leverage.
→The management has not provided any forward-looking guidance related to raising new capital.
→Focus appears to be on recalibrating business strategies and maintaining healthy financial metrics rather than raising funds.
→There is no explicit indication or announcement about any debt or equity fundraising in the discussed earnings call or transcript excerpt.

Order book

→The transcript on pages 3 to 17 of the provided document does not explicitly mention the current or expected order book or pending orders for the company.
→The discussion primarily revolves around market strategy, inventory correction, channel performance, geographic focus, and sales volumes.
→No specific figures or commentary related to order backlog or pending orders were disclosed during the Q&A session.
→Focus areas highlighted include inventory management in certain states (UP, Bihar, Rajasthan), channel mix adjustments, and market share growth in online marketplaces.
→The company emphasizes normalized growth expected from Q3FY24 onwards, driven by pre-orders from distributors confirmed in a Q2 distributor meet, but no exact orderbook numbers are provided.

Capex plans

→The company mentioned a peak turnover capacity of INR 2,500 crores without requiring any additional CAPEX, indicating no immediate large capital expenditure plans.
→There was no specific mention of upcoming or ongoing capital expenditures or strategic investments in the discussed sections.
→Focus appears to be on brand building, market expansion, product premiumization, and improving distribution rather than heavy capital investments.
→The company is emphasizing marketing investments and new product development, but these are likely operational expenses rather than capital investments.
→They plan to continue expanding EBO stores gradually (adding 5-7 stores per month), which reflects ongoing investment in retail presence, but this does not appear to be large-scale CAPEX.
→Any major capex or strategic investment plans were not disclosed or indicated in the provided excerpts.

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