Sportking India Ltd (BSE: 539221) Q3 2026 Earnings Call dated Feb. 09, 2026
Corporate Participants:
Unidentified Speaker
Sandeep Sachdeva — Chief Financial Officer
Munish Avasth — Chairman and Managing Director
Analysts:
Unidentified Participant
Viral Jain — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to Sport King India Limited Q3 and 9M FY26 earning conference call. As a reminder, all participants 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 Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Darshi Jain from MUFG in time. Thank you. And over to you.
Unidentified Speaker
Thank you. Good afternoon everyone. Welcome to the Sport King India Limited Q3 and 9M FY26 earnings conference call today. On the call we have Mr. Munish Abasti, Chairman and Managing Director Mr. Sandeep Sachdeva, Chief Financial Officer and and Mr. Lavalesh Verma, the company Secretary. A short disclaimer before we start this call. This call will contain some forward looking statements which may be based upon our belief, opinion and expectations of the company as of today. These statements are not a guarantee of future performance and will involve unforeseen risks and uncertainties. With that I would now like to hand over the conference call to Mr.
Sandeep Sachdeva for the Chief Financial Officer for his opening remarks. Thank you. And over to you. Sir.
operator
The line for the management has been disconnected. Stay connected till the time we get them back. The line for the management has been reconnected so you can proceed ahead with your speech.
Sandeep Sachdeva — Chief Financial Officer
Thank you. Good afternoon everyone. To begin with I will walk you through the company financial performance for the quarter and nine months ended 31st February 2025 for Q3FY26 we achieved revenue from position of INR 645.9 crore as 6% increase yoy and gross profit stood at 151.1 crore a margin increase of 0.6% yy it is gross profit margin stood at 23.4%. Operational EBITA for the Q3FB26 stood at INR 65.6 crores as against INR 59.2 crores in Q3FP25 a 10.8% increase on y basis. EBITDA margin was at 10.2% expanded by 45 basis point on year to year paired quarter Q3FB26 was INR 24.6 crores and increase of 33% of yUI pad.
Margin stood at 3.8% and 77bps increase on yearly basis. During the current quarter a fire accident occurred at Bahinda plant of the company however, no casualties were reported. The company has recorded the loss of Aina 32 crores incurred on account of fire which has been netted off with the insurance claim recoveries, the net impact of which is not material. For nine months of February 26th revenue from operations to the 1851.1 crores gross profit mounted to INR 458.5 crores compared with INR double 4 6.1 crores. In nine months average reflecting y increase of 2.8%. Gross profit margin increased by double 13 basis point to 24.7%.
The expansion in gross profit margin was primarily driven by stable raw material prices throughout the period which enabled better inventory optimization, improved facility management. A beta for 9 months average 26 grew by 3.8% to INR 2005 crores with a beta margin of 10.8% an increase of 59 basis point yoyo PAT for 9 months FY26 stood at 987 crore and keys of 11.8%. YY PAT margin stood at 4.7% increase of 57 basis FY. As of Q3FY26 we stand at capacity inflation of 96% among the highest in industry. Coming to export contribution for this quarter, shares of export in the revenue is approximately AINA 309 crores.
It contributed to 48% of total revenue during the quarter. Domestic Revenue stood at 324.7 crores compared to 51.2 crores in Q3FY25 delivering a robust year on year growth of 29%. The export contribution increased from 930.4 crores in 9 months FY25 to INR 984.6 crore in 9 months FY26 an increase of 6% YY contributing 53% share in our revenue. Both cotton production and cotton yarn sales remained cumulative similar in the quarter three FY26 coming to 21.073mt and 21273mt respectively. Overall it was a robust quarter with better margins given by operational efficiency and strong capacity utilization. Now I will hand over the call to Shilmeesh Vaski CMT of the company for his remarks on the result and the outlook.
Munish Avasth — Chairman and Managing Director
Thank you Sandeep Ji and good afternoon ladies and gentlemen. I hope you have an opportunity to go through our press release and investor deck. First of all I would like to update on the quarter which just went by that is October to December. We started the quarter on the back foot as full impact of 50% US tariffs kicked in from first September. Demand was low key across the world with new uncertainties. Only bright spot was Indian government giving a duty free window till 31st December for cotton, thus making at least cotton prices move in balance with international prices.
We were able to navigate these challenges pretty well as our strategy of making operations more efficient in last couple of years helped us in maintaining or improving margins. Even though spreads were down all across the products as the New year started, we have witnessed a sharp demand from China for cotton yards after a long time. Bangladesh has been pretty consistent and resilient for us in spite of all the uncertainties in the market before the impending elections. This has helped in moving the spreads upward. As we speak, further impetus has been given by long awaited India USA deal which has unlocked additional demand since last week.
But all these positives Positive factors coming in but all these positive factors coming in lately pale in front of the landmark EU India FTA deal which was finalized last week. This deal is a game changer for Indian textile industry and we believe is a very positive for the sector for years to come. We thank the Government of India for finally giving us a level playing field in the biggest textile consuming block in the world. Future is looking great for the sector. Cotton prices are the only headwind left in the system to make us the most competitive textile nation in the world.
There is a ray of hope that US cotton would be given a duty free access once the deal is signed. We eagerly await the fine print. We have been engaged with the government to remove the duties and hopeful that this issue will be resolved soon. To unlock the massive potential of this sector, CCI has been procuring the cotton 33 to 40% of the cotton and they are quickly understanding the problems of the industry and trying to align the prices as per the international prices. Now I would like to share with you our various CAPEX programs.
A 40 megawatt solar capacity plan will be starting from the 1st of March which will increase our renewable power consumption to 40 to 45% of total consumption thus making us much more competitive and sustainable. Our new now coming to our captives in the OLESA project. It is progressing as planned. To recap, Greenfield expansion project was announced and approved in quarter 1 FY26 to increase the spinning capacity of the company. In the first phase of the expansion, 1.5 lakh spindles will be set up in the state of Odisha. This will be an approximately 40% increase over existing spindle count to 3.79 lakhs.
The total outlay would be approximately 1000 crores and be funded through mixture of terminals and internal accruals. We have acquired the land and have also completed the full. All the approvals have been received. In addition, advance payments for all the machinery have been made and last about 15 days back we started the ground with the groundbreaking activities and the site construction has commenced at full throttle. With these critical steps completed, the project is firmly on track and position us well for the next phase of our planned capacity build up. Looking ahead, we remain confident in our strategy, the resilience of our operations and the strength of our team.
With disciplined execution and continued growth investments, we are well positioned to navigate external challenges and capture emerging opportunities. With that, I will now hand over the call to the moderator to open the floor for the question and answer session. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rajeev Jain from Arcane Investment. Please go ahead.
Unidentified Participant
Hello. Am I audible?
operator
Yes sir, you are.
Unidentified Participant
Thank you for the opportunity. So I just have a couple of questions. Firstly, I had a question regarding the financial. So if the fire incident had not occurred, what would our part have been for the period? And could you maybe help quantify the financial impact attributable to the incident?
Munish Avasth
Yeah, the financial impact is around 1.5 crores.
operator
Mr. Rajiv, are you there on the line?
Unidentified Participant
Yes. Yes sir. Hello.
Munish Avasth
I just answered the question. The financial impact of fire incident was 1.5 crores to the bottom line.
Unidentified Participant
Understood sir. Understood. And secondly, following on regarding this quarter performance, could you provide clarity on the tariff impact like both in terms of revenue and EBITDA for yarn business?
Munish Avasth
For which quarter are you talking about?
Unidentified Participant
For both previous and current.
Munish Avasth
The previous quarter as I said in my opening remarks that there was a US Tariff which kicked in basically in last quarter because it was in September quarter, it was just there for a month. So there was a lot of negativity and the demand was low all around. So there was a substantial damage to the sentiments. And the overall demand was pretty low in spite of the festival season. But things have improved since January and now with all these new with the deals happening and overall the sentiments are good. So yeah, we hope for the best.
Unidentified Participant
Understood, Understood. And in current Environment where customers are pushing for price reductions. What measures are you taking to manage this pressure while protecting your margins? Could you throw some light on that?
Munish Avasth
So actually you know prices are increasing now after a long time because overall demand has come from all the, from all the countries and within India. So there is no pressure on you know, pricing right now. Rather prices have been going up since last 45 days. There’s been an increase of almost 20 to 25 rupees in the cotton yarn prices.
Unidentified Participant
Understood. Understood. Thank you sir for answering my questions and all the best for the future quarters.
operator
Thank you. The next question comes from the line of Bhavika from Nivishya Investment Advisory. Please go ahead. Yes ma’, am, you are.
Unidentified Participant
Thank you for the opportunity. So the first question is regarding like a general because the recent JD for which we had with US and Europe just want to understand how this having impact on the business overall like what management is seeing on the positive side because a lot of demand is going to come in future. So just want to understand like how management is expecting to take advantage of the studies. And the second question is related to the proposed mergers which the company is doing and garment side. So want to understand what is the vision of the management behind it like how they see this segment to grow.
Munish Avasth
Okay, so first question is about the impact of US trade deal and the EU trade deal. So you know because of high tariffs on by USA on Indian apparels the demand has been very muted for last three, four months. And where we were watching a substantial growth in the last year which had totally tampered because of these tariffs. So this. But after this deal now we are slightly better than our competitors. And so we foresee a lot of orders coming back as most of the buyers see India as a stable source of stable country to source their garments as compared to other countries.
And there’s a lot of diversification going on within the brands from Bangladesh, Pakistan, India, China. So we see a lot of business coming back and with EU of course there is a substantial change in the duties because right now most of our competing countries are paying 0% duty and we were paying 12%, 9 to 12% right now. And once this deal is formalized in next six to eight months we are going to come back to zero. We are going to be also at zero. And most of these countries who are enjoying LDC status they’re going to be phased out in next two, three years and it’s going to go to 8%.
So there’s a huge remarkable turnaround of from you know 1012 negative to 8 positive. So that opens a lot of opportunity for the textile sector to you know, grow and we are excited and we are of course increasing our capacity by 40% just because of you know, we know that you know these deals had to be signed and luckily you know we are at the right time at the right place. And regarding the merger, yes, the merger will be completed by the end of this quarter and our vision is definitely our vision is to be a predominantly garment house, garment player in next five to 10 years.
This is just to give us a leverage and know how that we are acquiring these units and we’re going to scale them up as we learn more about the business and with these increased opportunities I think we will have to fast track our, the plans which we have. So yeah, we are very excited towards the future with all these deals happening and overall India is anyways has gotten much more efficient as we compare to the world whatever is happening around the world in the competing countries. So yeah, we are very excited that I think we are, we are looking at a very high growth in textiles in next three to five years.
Unidentified Participant
Just a follow up question that you are like I think most of your like more than 40 of your revenue comes from the Bangladesh. I guess so like there’s a recent news around that the Bangladesh is going to be a fall in the category of developing nation, developing country. So the deal which we have with the Europe is going to expire. So is there any impact you are seeing? Because like a lot of business comes from the Bangladesh. So do you see any kind of risk from that aspect?
Munish Avasth
See Bangladesh will continue to supply to Europe till you know, the brands don’t have an option. So the new option which is, which is coming up is India. So we, so we expect whenever the Bangladesh demand goes down, whenever this happens we expect the Indian demand to go up much faster and which is more of course domestic demand supplying to our domestic manufacturers is much more certain market. So I don’t think so we’re going to be, it’s going to be any problem as such.
Unidentified Participant
Okay, that’s all. Thank you so much.
operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Sia Maheshwari from SNJV Capital. Please go ahead.
Unidentified Participant
Hello.
operator
Yes ma’, am. You are audible. Please proceed with your question.
Unidentified Participant
Yeah, good afternoon sir. Thank you for the opportunity. So as you mentioned in the previous call that the textile industry is consolidating as many mills are Shutting down due to higher operational costs. Are we still seeing further capacity shutdown happening within and what implications could this have on supply dynamics or price going forward?
Munish Avasth
Definitely, I think that’s the process which is not only happening in India, but it’s happening across the world. I think India is one country which is less affected. If you look around Turkey, Indonesia, China, not China that much, but Pakistan and Bangladesh there have been huge, huge shutdowns. And India also from I think as per the machinery supplies, the capacities have come down by at least 5 to 6 million spindles, maybe more. So the recent uptick we have seen in demand is I think a lot to do with the consolidation which has already happened in last two, three years.
So yes, we are seeing it in the short term. We are already seeing the impact of all this and that is the mantra now. I think we are going to see much more consolidation happening in the sector. A lot has happened and we see going forward a lot more happening.
Unidentified Participant
Okay, what percentage of our cotton with the import duty back in place have there been a representation made to extend term for duty remission since as you said due to CCR buying an msp the domestic cotton is either ways expensive than the.
Munish Avasth
Mix of imports in our basket is very dynamic. So whenever there is an opportunity we go for more imports. And whenever we see that Indian cotton is more aligned with the international prices, we switch back to Indian. And there has been consistent talks with the government about this problem and government is aware of all this and we see a little bit of pressure easing because of the US trade deal. There is as mentioned by the minister that cotton has been cotton will come at zero rate. Maybe we will know more about it once the fine print comes in mid March or maybe next week.
And yes, CCI also is aware of all these things happening and they are aggressively reduced prices and the prices are not very far away from what international prices are right now. So for now I think we are at a good place when it comes to domestic prices or international prices. The gap is not that much but we need the duties to go for sure for a long term clarity and certainty in the business.
Unidentified Participant
Okay. Okay, sir, got it. And the marginal decline in gross margins for this both year on year and QoQ. Could you walk us through the key drivers behind this moment? Like particularly in terms of raw material volatility, product mist and pricing environment.
Munish Avasth
It wasn’t. You see the margins year on year have actually gone up and Q on Q there was a slight dip and the main it was mainly to do with the Fall in other income there was some fluctuation because of the forex rate which was in which is there in this quarter because the currency moved very sharply and then there was a small loss because of the fire that is 1.5 cell.
Unidentified Participant
So just the last follow up sir, how do you see gross margins trending over the next few quarters given the current cotton size and dynamics and operational efficiencies being implemented?
Munish Avasth
Yeah, we definitely see some improvement quarter by quarter in next two quarters. So we expect the margins to go up by at least 10% Q1Q this quarter and maybe a further 10, 10 to 15% next quarter. We see because we have that kind of vision so we can give this statement.
Unidentified Participant
Okay, got it. Thank you sir.
operator
Thank you. The next question comes from the line of Pranay Javeri from JNJ Holdings. Please go ahead.
Unidentified Participant
Good afternoon sir. Thank you for giving this opportunity. Sir, if you can just throw some light on the spreads in Q3 this year vis a vis Q2 and how. Is the situation currently saying Jan
Munish Avasth
overall spreads visa vis Q3 had come actually are down by rupee in. Sorry Q3 the spreads were down by almost 34 rupees as compared to Q2 and overall spreads were also down and year on year they were also down. But we have seen currently the spreads are up right now. I think the spreads which were at Cotmian spreads which were at about 112 are now around, you know around 130 or so.
Unidentified Participant
So basically Q3 the average spread was about 112. Q2 was 110.
Munish Avasth
Q. No, Q2 was around 118 rupees and Q3 was around 113 rupees. Sorry, 113 rupees.
Unidentified Participant
Okay. Which currently from January is about 130 rupees. 130.
Munish Avasth
No, it’s not like that. Because see we as a company have a, you know we have a booking for two to 60 to 70 days. What I’m saying is what I’m selling today will be at a spread. The spread will be about 20 rupees higher than what it was last quarter.
Unidentified Participant
Got it, Got it. And one point on the merger. What would be the promoter holding after. This merger is approved?
Munish Avasth
So there is no equity. Impact in this merger. So there won’t be any. It will be the same as it is today.
Unidentified Participant
Okay, thank you sir. I’ll come back in the queue.
operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Hitendra Pradhan from Maximum capital. Please go ahead.
Unidentified Participant
Yeah. Hi sir. So I had a question related to the tariffs and you know the impact that we are anticipating. So sir, on the garments whenever the UFTA kicks in the duties will be going from 12% to 0% and the US in the US it will be 25 to 18. But for Yans we are just going to get zero duty access to you market and we are anticipating the demand from the domestic government manufacturers from the increases. Is that understanding correct sir or the.
Munish Avasth
Yeah, you’re right. Definitely your understanding is right.
Unidentified Participant
Okay. So sir, do you have any plans to kind of increase our revenue share in garments? I mean most of our revenue is coming from behind and I think a smaller portion from governments. So are we trying to scale up anything in the governments as of now.
Munish Avasth
The point of merger is of course to integrate our garment business into this company and the process. So we are learning the garment business right now. I think we’ll be ready in six to eight months to scale it up and especially after these deals have been made there is more incentive to speed it up. So as I mentioned in our my opening remarks that we will be fast tracking all our programs which are on the drawing board. I’ll be sharing with you whenever we are ready.
Unidentified Participant
Got it? Okay sir.
operator
Thank you. The next question comes from the line of Bhavika from new share investment advisory. Please go ahead.
Unidentified Participant
Hello.
operator
Yes ma’.
Unidentified Participant
Am. Yeah.
operator
Yes you are.
Unidentified Participant
Actually I need understanding on the CAPEX plan. So like thousand crores of CAPEX is happening for this greenfield expansion. So I want to understand what kind of domain potential we can expect from it and what will be the timeline of ramp up and how it will go like at what time the optimum utilization can be expected from this expansion.
Munish Avasth
So we right now we have. So this is a thousand crore project which will give us a turnover of about 12 to 1300 crores. So additional turnover and so we expect to start commissioning machines commissioning by third quarter of this year and I think it will take us three to four months to wrap it up and be at 96 to 98% of capacity utilization. Expect that to come by the end of next financial year.
Unidentified Participant
I think on geography, diversify point I want to understand like what the current share we have from the Bangladesh and what other countries they are catering and going forward what we are expecting the share will be like domestically and export side and the Bangladesh share specifically.
Munish Avasth
Ma’, am we are a very dynamic company so we keep on switching our share. We are present in almost all the countries where cotton yen goes. So we. And we have good relations everywhere. So we keep on varying our percentage as per the market demand and where we can get better product prices. So it’s very, very dynamic. So wherever we get more margins and wherever so we shift. So I cannot give you exactly what it will be in the future. Of course our endeavor will always be that, you know, to sell more and more domestically because that market is more certain.
But we are very dynamic and we keep on changing our product mix as the demand kicks in and the market.
Unidentified Participant
Thank you.
operator
Thank you. The next question comes from the line of Udit Gupta, an individual investor. Please go ahead.
Unidentified Participant
Good afternoon sir. So by when is this merger process expected to be complete?
Munish Avasth
So we are. We will be finishing this. So we are within this quarter. By this quarter end we should finish this merger. And from the 1st of April we shall be one company.
Unidentified Participant
Okay. And sir, how much does this add to the top line or the bottom line as per last year’s or current year’s financials of those companies?
Munish Avasth
So it will add around about 200 crores. And bottom line was around 15% in those companies. So you can do the math.
Unidentified Participant
And so we are looking at some expansion in those facilities as well.
Munish Avasth
Yes, definitely. We are already on the job. And we expect to increase the turnover by at least 25 to 30% in next financial year. From 200 we wish to go to 250 to 60 crores.
Unidentified Participant
So this is all garmenting capacity.
Munish Avasth
Yes, commenting and dying.
Unidentified Participant
And sir, regarding the power costs of our company as a whole. So you said we are gradually moving towards solar. So how much in amount terms can we look at the numbers? Like how much can it go down? Like how much can be the benefit in rupee terms.
Munish Avasth
So we already have about 15% of using. 15% of our power is through solar. And for the 1st of March new solar capacities are kicking in which will give us an additional 25 to 27% of power renewal power. And we should translate in a saving of around 16 crores per year from starting from the 1st of March next month.
Unidentified Participant
And sir, any other solar capacities in the pipeline or. Sir, this is the right for now. This is the last one.
Munish Avasth
So this is. We have maxed out as per the government policies. There’s a maximum we could go to and so we cannot go any beyond this.
Unidentified Participant
And so what are the power prices per unit in Punjab from the grid If we buy, ?
Munish Avasth
that’s around 6.3 rupees. Right?
Unidentified Participant
And sir, in Odisha we’ll be getting a subsidy on the power prices as well.
Munish Avasth
Yeah, that. That is for 10 years. We’re going to get power at 4 rupees.
Unidentified Participant
Get it? And so what is the debt that we’re looking at to for this Odisha plant for the 1000 crore capex?
Munish Avasth
It’s around 650 crores. 650 crores.
Unidentified Participant
And you said the commissioning will start from October?
Munish Avasth
Yes, we’ve already spent about 100 crores from our internal accruals and the construction is going on at full speed and we hope to be in start commissioning from before October actually.
Unidentified Participant
Okay. And so it will take about six months to commission like you said.
Munish Avasth
Yeah. The partial production will kick in by December but in spinning it takes because you can’t do it all at once. So the project of such size takes at least four to six months to fully commission.
Unidentified Participant
And sir, is there any capital or interest subsidy in Odisha as well?
Munish Avasth
Yeah, there are capital subsidies there and there are no interest subsidy as such but capital subsidy and egs that is Employment guarantee scheme subsidies are there.
Unidentified Participant
Thank you so much sir.
operator
Thank you. A reminder to all the participants that you may press Star in one to ask a question. The next question comes from the line of Viral Jain from SNG Finance. Please go ahead.
Viral Jain
Yeah. Hi. Am I audible?
Munish Avasth
Yes.
Viral Jain
Yeah. Thank you for the opportunity. So I got few questions. The first one was on the budget part. So after the recent announcement on the budget can we expect any potential benefit for the company? Let’s say there can be any government scheme that or the policy change that will help the company to grow grow more positively to the cost structure, expansion plan or competitiveness.
Munish Avasth
Yes, I think our industry didn’t need much in the budget. But one substantial thing which was in budget was that government has made textile as their core emission sector and they have allocated a large amount towards improving the cotton yields in India. I think this will go a long way in actually securing good quality and cheaper raw material for the country. I think that was the main salient feature which I thought was very good which the government, the initiative they have started and they have also stated to open up many more textile parks in India and give them certain incentives.
So we see a lot of downstream momentum going forward. So that of course is going to benefit us being a yarn producer.
Viral Jain
Got it sir. And my next question was with the future outlook. So given the current demand environment and the cost structure, what is the management outlook on the revenue growth and the margin expansion for FY26?
Munish Avasth
FY26 we are already. We are in the last quarter and as you know that we are running at 96% of utilization which is maximized. So we don’t have much to go in the revenue. The only uptick in the revenue can be with the increased prices in margins. Definitely we see some uptake in next 2, 3 quarters with all the positive sentiments all around and but the new, the revenue expansion will only come once we start with the visa project.
Viral Jain
Got it, sir. And can we expect that the industry will be normal back in, in next two to three quarters?
Munish Avasth
Yes, future looks good. So you know as the industry has consolidated in last two, three years, you will see everybody, all the people involved in the textile, the well managed and well run efficient units doing well in going forward. And not only for next 2, 3/4. We see a good bright future with India signing these treaties, especially with the EU and UK and the usa. Business has also been resumed now with this tariff reduction. So we see a short term, of course the things have gotten better because of Chinese demand and U.S. tariffs. But long term also we see a lot of business coming in because of all these trade deals and more trade deals.
The Finance Minister is talking, Congressman is talking about many more deals. So I think we are in a good place.
Viral Jain
Got it sir, thank you for answering all my question. That was all from my side. All the best.
operator
Thank you. A reminder to all the participants that you may press Star and one to ask a question. The next question comes from the line of Pratik Shah from Investing Alpha. Please go ahead.
Unidentified Participant
Hello? Yeah, hi sir. So one quick question on the EU fda so being.
operator
Hello, Mr. Pratik, are you there?
Unidentified Participant
Hello? Am I audible?
operator
Yes, you are now.
Unidentified Participant
Yes sir. I was saying given that the EU FTA has been finalized, are we trying to broaden our reach in the garmenting business?
Munish Avasth
Yes, as I stated before also in my remarks that the whole point of merger was of our company, the garment company and the fabric dyeing company was actually to take advantage of these opportunities whenever they come and now they have come. So as you know, the merger is going to be complete on the 1st of April and we are actively looking at the opportunities this all these FTAs give us going forward. And we are going to fast track some of our plans which we have on the garment side which will announce shortly. I think maybe it takes us around three to six months, but we are ready for that.
Unidentified Participant
Okay. And just to follow up on this sir, with this new trade landscape, are you looking, are you rethinking your long term integration strategy or seeing the new areas the company can add more value.
Munish Avasth
We are comfortable in what we are doing and in spite of all the challenges, a lot of consolidation has already happened in our sector. And with all these capacities coming in, I think the downstream opportunities coming in, I think we would have our hands full in all the areas we are operating. And the value, I think with all this demand going up, the value will be created within the sectors we are operating. We just have to be more efficient and productive, which we are. And that’s our vision going forward, to be more efficient and more cost conscious and more automation.
So that’s what we are doing. That’s what we have done for last three years. I think a lot of value will be created in the coming time once the demand is unlocked.
Unidentified Participant
Got it, sir. That’s it from my side. Thank you.
operator
Thank you ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to management for closing remarks.
Munish Avasth
Thank you everyone for taking some time out of hours to participate in this call. In case of any queries, reach out to us on our investor relationship agency, MUFD Investor Relations. Wish you all the best. Thank you so much.
operator
On behalf of Sport King India Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.