SP Apparels Limited, a prominent player in the apparel industry, has announced significant changes to its board composition, including re-appointments and new additions to its leadership team.

Key Board Changes

The company's board has approved several important leadership changes:

Re-appointments

• P. Sundararajan has been re-appointed as Managing Director for a five-year term starting November 21, 2020.
• S. Latha has been re-appointed as Executive Director for five years, effective from August 16, 2021.
• A.S. Anand Kumar has been re-appointed as Independent Director for another five-year term beginning November 13, 2020.

New Appointments

• C.R. Rajagopal and H. Lakshmi Priya have been appointed as new Independent Directors, each for a five-year term commencing September 2, 2020.

Retirement

• P. Yesuthasen has retired from his position as Independent Director after completing his five-year term on August 28, 2020.

Remuneration Details

The board has also approved remuneration packages for the executive positions:

Independent Directors will be compensated through sitting fees only.

Shareholder Approval

It's important to note that all these appointments and re-appointments are subject to shareholder approval, underlining the company's commitment to corporate governance and transparency.

These board changes reflect SP Apparels' focus on maintaining strong leadership while also bringing in fresh perspectives. The mix of re-appointments and new additions suggests a balance between continuity and innovation in the company's governance structure.

As SP Apparels navigates the dynamic apparel industry, these leadership changes may play a crucial role in shaping the company's strategic direction and operational excellence in the coming years.

SP Apparels , India's largest manufacturer and exporter of knitted garments for infants and children, has reported a robust financial performance for the first quarter, with significant revenue growth despite facing margin pressures.

Strong Revenue Growth

The company's consolidated revenue witnessed a substantial increase of 63.3% year-on-year, reaching ₹4,050.70 crore. This impressive growth was primarily driven by the garment exports segment, which saw a 35.8% rise in revenue to ₹3,729.40 crore.

Operational Performance

SP Apparels demonstrated strong operational metrics in its core garment export business:

• Export volumes increased to 18.6 million pieces, up from 15.8 million pieces in the previous quarter.
• Net sales realization improved to ₹147.20 per piece.
• Capacity utilization reached a healthy 83%.

Financial Highlights

Margin Pressure

Despite the strong top-line growth, the company experienced some margin compression:

• EBITDA margin declined to 13.5% from 14.4% in the same quarter of the previous year.
• PAT margin dropped to 5.1% from 7.3% in the same period last year.

The garment exports segment, while driving growth, also saw its EBITDA margin fall to 14.6% from 15.6% in the previous year.

Segment Performance

• Garment Exports: This segment, including Young Brand Apparel, was the primary growth driver with revenue up 35.8% to ₹3,729.40 crore.
• Retail: The retail segment remained relatively flat with minimal growth.
• SPUK: SP Apparels' UK subsidiary showed revenue growth of 26.3% but continued to report losses, albeit reduced from the previous year.

Looking Ahead

SP Apparels' robust revenue growth, particularly in exports, suggests a positive outlook for the company. However, the pressure on margins indicates challenges that the company may need to address in the coming quarters. The strong capacity utilization and improved sales realization in the garment export segment point to potential for further growth, provided the company can manage its costs effectively.

As SP Apparels continues to navigate the dynamic global apparel market, investors and industry observers will be watching closely to see how the company balances its growth trajectory with profitability in the future.