Q1 2025 S.P.Apparels Ltd Earnings Call Transcript
Key Points
- S.P. Apparels Ltd (BOM:540048) is benefiting from the China plus one strategy and political unrest in Bangladesh, leading to increased interest from clients.
- The company is expanding into favorable locations like Sri Lanka, leveraging its duty-free status and skilled labor availability.
- The main facility is operating at full capacity, enhancing efficiency and performance.
- The garment division has broadened its range by venturing into the adult market and is set to boost production with new machines.
- The subsidiary in Sri Lanka is yielding positive results, with significant business opportunities expected from new customers.
- The spinning division has faced challenges due to fluctuating cotton prices, impacting overall performance.
- The retail division reported a slight decline in revenue and continues to face profitability issues.
- There is an increase in debt due to the acquisition of EN. brand apparel, raising concerns about financial leverage.
- Capacity utilization is currently at 79.7%, with constraints primarily due to labor availability.
- The company has strategically chosen to discontinue certain brand enhancements due to unprofitable outcomes, which may affect future growth.
Ladies and gentlemen, good day, and welcome to the conference call to discuss Q1 FY 21 of SBFRS. Limited, hosted by Elara Securities Private Limited as a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ignacio Genoa from Elara Securities Private Limited. Thank you, and over to you, ma'am.
Thank you, Todd, and good afternoon, everyone. On behalf of Elara Securities Private Limited, I would like to welcome you all to Q1 FY 25 post result conference call and business update. All of SB. about is limited.
Today.
We have with us the senior management of the company, including Mr. Rajan , Chairman and Managing Director, Mr. S. Shandong Joint Managing
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