India Ratings Confirms Campus Activewear’s LT Rating


Campus Activewear said India Ratings and Research has affirmed the company’s long-term issuer rating at ‘IND A+’ and the outlook for it is ‘positive’.

India Ratings said the “positive” outlook reflects continued portfolio premiumization and strong volume growth in the first half of FY23, leading to substantial revenue growth, and the likelihood of continued growth in the second. half of the year while maintaining a strong credit profile.

Additionally, after the IPO and listing in May 2022, the company’s corporate governance and financial reporting have improved.

The rating agency further stated that a significant improvement in revenue as well as profitability through increased share of premium products, while maintaining credit metrics, will be positive for ratings.

However, lower than expected revenue diversification and/or deteriorating EBITDA margins, higher working capital requirements or significant debt-financed investments, leading to higher net leverage (net debt/EBITDA) at 1.5x, on a sustained basis, could lead to a revision of the outlook to “stable”.

Campus Activewear began business operations as Ankit International in August 2015. The company is part of the Hari Krishan Agarwal group of companies within the wider Action Group, which has been in the footwear business for over three decades. .

The company recorded a 48.51% decline in net profit to Rs 14.54 crore on a 22.04% increase in sales to Rs 333.17 crore in Q2 FY23 compared to Q2 FY22.

The certificate fell 4% to end at Rs 426.50 on BSE yesterday.

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