S. P. Apparels Limited — PPTs, 11-11-2024: Investor Presentation

**Financial Highlights:** For Q2 FY25, S.P. Apparels delivered a total revenue of ₹2,575 million, marking a year-on-year growth of 4.6%. The adjusted EBITDA stood at ₹440 million with a margin of 17.1%, while PAT was ₹180 million, translating to a PAT margin of 7.0%. On a consolidated basis, total revenue reached ₹3,937 million, a significant rise of 32.1% year-on-year. The consolidated PAT was ₹219 million, with a margin of 5.6%.

**Strategic Initiatives and Growth Drivers:** The company's growth strategy includes expanding its capacity and geographic footprint, with recent developments in Sri Lanka and a focus on increasing the product portfolio across men, women, and intimate wear. The acquisition of Young Brand Apparels strengthens SPAL's presence in the US market.

**Business Developments:** Notable expansion efforts include installing new machinery in Sivakasi and plans for new shipments from Sri Lanka, leveraging duty-free benefits to enhance export efficiency.

**Market Position and Competitive Advantage:** SPAL is well-positioned as a leading exporter of infant and kids' apparel, catering to global brands with stringent quality compliance, strong in-house design capabilities, and an ability to meet diverse manufacturing demands.

**Investor Implications:** The positive growth trajectory and strategic initiatives indicate a favorable outlook for SPAL, supported by strong demand in the garment export sector, particularly given macro tailwinds favoring Indian exports. Investors should watch closely for developments in capacity enhancements and market expansions.