SP Apparels, a Avinashi, Coimbatore-based company, reported a 42 per cent decline in net profit to ₹15 crore for the first quarter ended June 30, 2023 as against ₹26 crore for the corresponding quarter last year. Revenue was down by 4 per cent to ₹245 crore (₹252 crore).

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Revenue from both garment export and retail declined in the June quarter when compared with the corresponding quarter. However, revenue from ‘SPUK’ — incorporated in 2014 to explore additional marketing opportunities and engage in trading activities with new customers in the U.K., Ireland and other European countries — grew during the quarter, according to the company’s presentation to investors.

The integrated garment company for the first time crossed the ₹1,000 crore consolidated revenue mark in a fiscal by reporting ₹1,078 crore for the year ended March 31, 2023. It is India’s biggest manufacturer and exporter of knitted clothes for infants and children. In the retail segment, the company manufactures, distributes and markets in relation to the Crocodile brand in India.

The company has said that the capacity utilisation, which was 72 per cent in June quarter as against 68 per cent a year ago, has the potential to raise to around 90 per cent by March 2024 to fuel future growth.

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Meanwhile, the company has said that in consideration of strategic advantages and cost effective manufacturing circumstances, it proposes to incorporate a subsidiary company in Sri Lanka.

At the time of filing this report, the company’s share price on the NSE was trading at ₹443, down by 2.39 per cent.