Namaskar!
This year has been a testament to our resilience and commitment to
excellence, even in the face of challenging economic conditions. The global economic
landscape in FY24 was marked by volatility and uncertainty. Despite these headwinds,
Campus Activewear has demonstrated remarkable spirit. Our ability to navigate through
these turbulent times is a reflection of our robust business model, strategic foresight
and the dedicated efforts of our team.
The global market faced numerous challenges, including supply chain
disruptions, inflationary pressures and geopolitical tensions. The local market was
inundated by unbranded and cheaper alternatives from the large unorganised sector in the
footwear industry. However, our strategic initiatives and adaptive measures have enabled
us to withstand these challenges. We have remained committed to our vision of becoming a
leading brand in the sports and athleisure footwear market, focussing on innovation,
quality and customer satisfaction.
BUSINESS PERFORMANCE
Our Revenue from Operations stood at _ 1,448 Crores, reflecting a
marginal decrease of 2.4% YOY. This was primarily driven by a drop in volumes. Despite a
5.6% decline in the volume of pairs sold, our sales decline was less on account of an
increase in average selling price (ASP) by 3.4% from _ 631 to _ 652. This demonstrates our
focus on premiumisation and maintaining competitive pricing even amidst macroeconomic
challenges.
Our EBITDA and PAT also declined as compared to the previous year,
mainly on account of higher Operational Expenses compared with marginal Revenue degrowth.
We have stayed true to our expansion and growth strategy even during this challenging
period, with thrust on more management bandwidth and hiring, higher Advertisements &
Sales Promotion expenses leading to some compression in profitability margins for the year
under review. Our focus on fortifying the balance sheet and optimising the working capital
cycle has also yielded some results. We have significantly decreased our Gross Debt from _
180 Crores in FY23 to _ 24 Crores by the end of FY24. This financial prudence ensures we
are well-positioned in light of a muted industry environment.
OPERATIONAL HIGHLIGHTS
In FY24, we inaugurated 66 new Exclusive Brand Outlets (EBOs) across
western, southern and eastern regions, bringing our total to 250+ EBOs. We expanded from
35 EBOs in 2020 to over 250 EBOs nationwide in 2024, marking significant growth in a short
span across the country. This expansion not only increases our market presence but also
enhances our ability to serve customers better and deliver an unparalleled customer
experience.
In addition to the physical stores, we have strengthened our online
presence. Our e-commerce platform, www.campusshoes.com, along with the strong presence on
leading online marketplaces continues to drive significant online sales. We also exited
some third-party online marketplaces in FY24 as part of strategic realignment, which
partly impacted our volumes during the year under review. We sold more than 7 million
pairs through online channels in FY24, contributing 35.9% to our total revenue.
Our market performance has been encouraging, particularly in the North
and West regions, where we experienced double digit growth in key states during last
quarter. Significant response in states such as Uttar Pradesh, Bihar and Maharashtra
further solidified our market position. We have also focussed on rural demand with a
comprehensive portfolio of designs catering to these price points.
SUSTAINABILITY AND SOCIAL RESPONSIBILITY
At Campus Activewear, we are committed to sustainable business
practices and social responsibility. We have implemented various initiatives to reduce our
environmental footprint and contribute to the well-being of local communities where we
have operations. The efforts include energy-efficient manufacturing processes, waste
reduction programmes, reducing our carbon footprint and community outreach activities.
We believe our success is not just measured by financial performance
but also by the impact on society and the environment. We will continue to prioritise
sustainability and social responsibility as integral parts of our business strategy.
OUTLOOK
We have made strategic investments in branding and new R&D-enabled
product introductions, emphasising our commitment to offering top-tier global designs and
technology in sports and athleisure footwear. Investments in technology and innovation
have been instrumental in driving our growth. We have enhanced our manufacturing
capabilities by incorporating advanced technologies that improve efficiency and product
quality. Our design team continues to innovate, creating footwear that combines style,
comfort and performance. Looking ahead, we are confident in our ability to navigate the
evolving economic landscape. The aspiration to revert to our past profitability margins is
supported by strategic initiatives and relentless pursuit of customer satisfaction. We are
committed to enhancing brand aspiration through innovative marketing and product
offerings. The Indian market presents significant growth opportunities, with increasing
consumer demand for sports and athleisure footwear. We are well-positioned to capitalise
on this trend, leveraging our strong brand, extensive distribution network and innovative
portfolio.
Concluding, I extend my heartfelt gratitude to our shareholders,
customers, partners and all other stakeholders for their sustained support and trust. To
our dedicated employees, your hard work and commitment are the pillars of our success.
Together, we will continue to move forward with confidence, knowing that our foundation is
solid, our vision is clear and our future is bright.
Thank you for your continued confidence in Campus Activewear. We look
forward to a year of growth, innovation and success.
Warm regards,
HK Agarwal
CHAIRMAN AND MANAGING DIRECTOR