Campus Activewear : Transcript of Analysts/Institutional Investor Meet/Con. Call

22nd August, 2022

To,

BSE Limited	National Stock Exchange of India Ltd.
Corporate Relationship Department	Exchange Plaza, C-1, Block G,
1st Floor, New Trading Ring, Rotunda	Bandra Kurla Complex, Bandra (East),
Building,	Mumbai - 400 051
P. J. Towers, Dalal Street,
Mumbai - 400 001
SCRIP CODE: 543523	SYMBOL: CAMPUS

Subject: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 -Transcript of the Earnings Call held with Investors/Analysts

Dear Sir,

Pursuant to Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith the Transcript of Conference Call held with the Investors/Analysts on 16th August, 2022 and the same is also available on the Company's website i.e. www.campusactivewear.com

This is for your information and records.

Thanking you

For CAMPUS ACTIVEWEAR LIMITED

ARCHAN A MAINI

Digitally signed by ARCHANA MAINI

Date: 2022.08.22 22:46:22 +05'30'

Archana Maini

General Counsel & Company Secretary

Membership No. A16092

Encl: As above

Campus Activewear Limited

Aug 16, 2022

Campus Activewear Limited

Earnings Conference Call

Aug 16, 2022

Moderator: Good day, ladies and gentlemen and a very warm welcome to the Campus Activewear Limited, Q1 FY23 Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing * then 0 on your touch tone phone. Before we proceed on this call, let me remind you that the discussion may contain forward looking statements that may involve known or unknown risks, uncertainties and other factors. It must be viewed in conjunction with other businesses that could cause future results performance or achievements to differ significantly from what is expressed or implied by such forward looking statements. The Campus Activewear management team is represented by Mr. Nikhil Aggarwal, wholetime Director and CEO, Mr. Raman Chawla CFO and Mr. Piyush Singh, Chief Strategy Officer. I now hand the conference over to Mr. Nikhil Aggarwal, whole time Director and CEO for his opening remarks. Thank you and over to you sir.

Nikhil Aggarwal: Thank you and welcome everyone for joining our Q1FY23 earnings call today. I believe everyone is staying safe. We appreciate and deeply acknowledge your trust in our vision to create India's leading sports and athleisure footwear brand. I'm delighted to share that our quarterly performance has been in line with expectations, despite an uncertain and inflationary macro environment. There has been a

Page 1 of 25

Campus Activewear Limited

Aug 16, 2022

sustained improvement in our YoY quarterly financial exhibiting marked improvement in both top line and bottom-line numbers as compared to Q1FY22 which was largely impacted by the 2nd wave of COVID-19 last year. Because of seasonality seen across product mixed consumption, quarter one empirically has been contributing 18% to 20% of our annual net revenue. During quarter Q1FY23, we sold more than 5.5 million pairs at an aggregate level, thereby clocking net income of INR 338 crores and YoY Growth of about 150% versus Q1FY22, which was at about INR 135 crores. Both trade distribution and D2C channels have delivered a holistic growth of more than 150% on a YoY in Q1FY23 versus Q1FY22. Just to highlight, we sold the highest ever first quarter volume in the history of campus at 5.6 million pairs, registering a YoY volumetric growth of about 141% in comparison to Q1 FY22. Along with volume, our quarterly ASP is also grown by about 3% from INR 580 in Q1FY22 to INR 597 in Q1FY23. Despite the challenging inflationary environment, Campus Activewear balance sheet continues to demonstrate strength with robust return ratios such as ROCE and ROE of 37.4% and 38.2%, respectively as on 30th June 2022. We are sincerely thankful to our end consumers, our channel partners and our passionate team which has helped us in delivering this performance which earmarked the underlying strength and resilience of the brand. As always, we thank you for your invaluable support and investment. I will now hand over to our Chief Strategy Officer, Mr. Piyush Singh, for his remarks. Thank you.

Piyush Singh: Greetings to everyone, adding on to what Nikhil just said while FY22 was an exciting year for all our stakeholders. We had started FY23 on a strong note from both an operational and financial performance standpoint. All our distribution channels, category cohorts, and price segments have demonstrated robust growth, both in terms of volume

Page 2 of 25

Campus Activewear Limited

Aug 16, 2022

and value amid the challenging operating environment impacted by supply chain disruptions and inflationary trends. Basis price segments are sealed trade in Q1FY23 has exhibited sustained premiumisation vis a vis FY22 full year where in sales contribution from semi premium and premium categories have increased from 64% in FY22 full year to 68% in Q1FY23. Similarly, on a category basis, revenue mix across men and women and kids have improved from 84:16 in the favour of men in FY22 to 81:19 in Q1FY23 favouring men and women and kids respectively. On a trailing 12 month basis, revenue from operations increased by almost 17% on a year on year basis to INR 1,397 crores in TTM Q1 FY23 as compared to FY22, full year revenue at 1,194 crores. Similarly TTM Q1 FY23 EBITDA stood at INR 290 crores as compared to FY22 to full year EBITDA INR 244 crores demonstrating almost a 19% year on year growth. TTM Q1 FY23 EBITDA margin also improved at 20.8% versus 20.4% for FY22 full year. Net profit during the trailing 12 months of Q1FY23 stood at INR 151 crores with PAT margin of 10.8% as against full year FY22 PAT of INR 124 crores at a margin of 10.4%. On the supply chain front, we continue to stay cautious of the challenging inflationary environment in the near medium term, ensuring that RM and semi-finished goods availability above everything else to maximise sales potential in the coming quarters. We continue to maintain a close watch on our input costs as well. As an outcome while at material margin has improved from 48.4% in quarter four of FY22 to 49.6% in quarter one of FY23 as gross margins have stayed intact at 36% across both the quarters. We are confident of maintaining that trend line growth trajectory and margin profile in the near to medium term. I will now hand over to our CFO us here for Mr. Raman Chawla to take you through more details on the quarter one FY23 performance over to Raman.

Page 3 of 25

Campus Activewear Limited

Aug 16, 2022

Raman Chawla: Good afternoon, everyone and welcome to quarter one FY23 earnings call of Campus Activewear Ltd. During the quarter under review Campus as a brand demonstrated a lot of resilience. Campus delivered its best first quarter, both in terms of top line and the bottom line growth. Revenue from operations increased by 149.6% year on year to INR 338 crores during the quarter with both channels trade distribution and D2C exhibited similar growth profile in this quarter at about 150% YoY growth. Our Q1FY23 sales volume registered at 5.6 million pairs, as against 2.3 million pairs in Q1 FY22, thereby generating 141% YoY volume growth. While Q1FY23 aggregate ASP stood at INR 597 versus INR 580 in Q1FY22, thereby resulting about 3% YoY ASP growth. In terms of profitability, EBITDA was at INR 62.3 crores in Q1FY23. As compared to INR 16.1 crore in Q1FY22, EBITDA margin stood at 18.4% in Q1 FY23 versus 11.9% in Q1FY22. In terms of a net profit during the quarter, it stood that INR 28.7 crores as compared to INR 2 crore in Q1FY22 and a profit margin stood at 8.5% in this quarter versus 1.5% in Q1FY22. Moving on to the balance sheet, our net debt has reduced from INR 174 crore in FY22 end to INR 124 crores as of 30th June 2022. Net debt to EBITDA ratio has improved from 0.7 X in FY22 to 0.4 X in TTM Q1FY23. Similarly, our return on capital employed has also gone up from 29. 7% in FY 22 to 37.4% in TTM Q1FY23 and our return on equity has also gone up from 32.9% in FY22 to 38.2% in TTM Q1FY23. With this I conclude and hand over to the operator for question and answer, thank you.

Moderator: Thank you very much. Ladies and gentlemen, we will now begin the question and answer session. The first question is from the line of Vicky Punjabi from UTI Mutual Fund. Please go ahead.

Page 4 of 25