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Informist, Thursday, Nov. 7, 2024

By Steffy Maria Paul

MUMBAI – Page Industries Ltd. beat the Street's estimates on its September quarter earnings. The company reported a net profit of INR 1.95 billion, up 29.93% on year, and higher than the INR 1.66 billion expected by analysts. 

The company reported a revenue of INR 12.46 billion for the quarter, up 11.06% on year, and also higher than the INR 12.16 billion estimated by the Street. The company reports revenues from operations net of its sales incentives. This is the highest on year growth in revenue for Page Industries in the last two years, after its top line grew 13% in Jul-Sept 2022. Sequentially, Page Industries' net profit grew 18.18% while its revenue fell 2.45%.

For Apr-Sept, the company reported a net profit of INR 3.60 billion, up from INR 3.09 billion a year ago. For the half-year, the company reported revenues of INR 25.24 billion, up from INR 23.51 billion a year ago. 

The manufacturer and seller of the Jockey and Speedo brands in India reported other income and financial income of INR 145.52 million for the quarter, more than triple of that reported a year ago; this was also the highest growth in such income in the last three quarters. The raw material cost for the company for the quarter was INR 2.76 billion, down 7.7% on year. The company's cost for the purchase of traded goods for the quarter was INR 1.73 billion, up 8.21% on year. The company's other expenses for the quarter were INR 2.17 billion, up 15.56% on year. The company's total expenses for the quarter were INR 9.98 billion, up 7.65% on year. 

The company sold a total of 55.2 million pieces in Jul-Sept, 6.7% higher on year. The earnings before interest, tax, depreciation, and amortisation was INR 2.82 billion, up 22% on year, beating analysts' estimate of INR 2.48 billion. The company's EBITDA margin for the quarter was 22.6%. 

Page Industries said it will pay a second interim dividend of INR 250 per share and set Nov. 16 as the record date for the dividend.

Stable input costs and improved operating efficiency contributed to the growth in operating profit, the company said. "Our operating margins remain strong, thanks to our focus on operational efficiencies, cost control, and strategic sourcing initiatives," V.S. Ganesh, managing director of Page Industries said in a statement.

While the growth in consumer demand trended higher than the June quarter, it remained subdued in the latest quarter, the company said. The company expects a surge in consumer demand with the festive season on the horizon. The company said while it is yet to see a revival in consumer sentiment, the onset of the festive season towards the end of the latest quarter has shown encouraging signs.

The growth rate across all channels of sales improved in the latest quarter as compared with the previous quarter, the company said. The e-commerce channel continues to grow at a higher rate as compared with the brand average. In the general trade channel, tier 3 and tier 4 towns continue to grow higher than brand average, the company said. The inner-wear and swimwear manufacturer said the growth in the apparel retail market will be driven by a young consumer base, rising disposable income, and rapid urbanisation.

On Thursday, shares of the company closed at INR 45,064.10 on the National Stock Exchange, up 2.1%.  End 

Edited by Vidhi Verma

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