Campus Activewear (CAMPUS) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 514.9 crores in Q3 FY25, up 9.1% year-over-year, driven by aggressive distribution, online sales, and festive demand.

• Sold 7.6 million pairs in Q3 FY25, a 10% year-over-year increase; direct-to-consumer channels contributed 48.2% of revenue.

• EBITDA margin improved to 16.7% in Q3 FY25 from 12.2% in Q3 FY24; PAT margin rose to 9.0% from 5.3% YoY.

• Launched 69 new products and expanded women's SKUs; added six new exclusive brand outlets, totaling 290.

• Interim dividend of Rs. 0.70 per share declared, representing 24.8% of PAT for FY 2024-25.

Financial highlights

• Q3 FY25 revenue: INR 514.9 crores (+9.1% YoY); net profit: INR 46.5 crores, nearly doubling YoY.

• Average selling price per pair in Q3 FY25: INR 675, down 0.9% YoY.

• Gross margin at 51.2%, down 20 bps YoY; EBITDA at INR 85.9 crores with margin at 16.7%.

• PAT margin up to 9.0% in Q3 FY25; basic and diluted EPS at INR 1.52.

• Total income for 9M FY25 was INR 1,196.65 crores, up from INR 1,086.44 crores YoY.

Outlook and guidance

• Margins expected to normalize as non-VIS inventory is largely liquidated by March; less than 10% of finished goods remain non-VIS.

• Selective price hikes of 7%-10% in less price-sensitive categories to offset input cost inflation.

• No significant increase in advertising or employee costs anticipated; AMP spend to remain at 7%-7.5% of sales.

• EBITDA margin aspiration remains at 17%-19% for the medium term, contingent on demand normalization.

• Interim dividend to be paid to shareholders as of record date 17 February 2025.