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Informist, Monday, Feb. 3, 2025

 

By Noopur Bhandiwad 

 

MUMBAI – Page Industries Ltd.'s revenue is expected to report low double-digit growth in the December quarter, primarily driven by a 7-8% growth in volumes, analysts said. The company is expected to report a revenue of INR 13.55 billion, up over 10% on year, according to an average of estimates from seven brokerages.

 

The manufacturer and seller of Jockey and Speedo brands in India is expected to report a net profit of INR 1.86 billion, up around 22% on year, according to the average of estimates. On a sequential basis, the company is expected to report a 9% increase in revenue and a 5% fall in net profit. The company is likely to have benefited from a rise in festival season consumer demand during the quarter, analysts said.

 

Inventory days at the distributor level have normalised for the inner wear and athleisure wear segment, Motilal Oswal Financial Services Ltd. said. The brokerage said the management's comments on the recovery of demand in rural areas will be keenly watched. 

 

Resource optimisation, improved store throughput, and efficient supply chain management have helped margins to improve in the December quarter, according to Centrum Broking. For the trailing December quarter, Page Industries' earnings before interest, taxes, depreciation and amortisation is expected to be INR 2.71 billion, according to the average of estimates from six brokerages. 

 

Brokerages expect EBITDA margins to improve to over 19% in the December quarter on the back of a better product-mix and softer raw material costs, analysts said. EBITDA margins are likely to get a boost from better cost savings and volume growth, they said. The company's EBITDA margin was 18.6% a year ago.

 

Emkay Global Financial Services Ltd. sees online sales of the company continuing to register robust growth, followed by sales from exclusive branded outlets. With the launch of the sub-INR 1,000 athleisure-wear, the category is seeing a pick-up in growth, while women's innerwear continues to see muted growth trends, the brokerage said in a report.

 

Shares of Page Industries have climbed over 37% so far in the current financial year and have risen nearly 5% since it announced the September quarter earnings on Nov. 7. Yet, the shares have lost 13% from its lifetime high touched in October 2022. On Monday, its shares closed at INR 47,278.75 on the National Stock Exchange, up 1.5%. The company will report its quarterly earnings on Wednesday.

 

Following are the Oct-Dec earnings estimates for Page Industries based on reports compiled from seven brokerage houses in descending order by the estimate of net profit (in INR million):
 

Brokerage firm	Net sales	Net Profit	EBITDA
Kotak Institutional Equities	13,271	1,978	2,853
Anand Rathi Share and Stock Brokers Ltd	13,885	1,921	--
Nuvama Wealth Management Ltd	13,762	1,878	2,751
Systematix Shares and Stocks (India) Ltd	13,664	1,845	2,733
Motilal Oswal Financial Services Ltd	13,479	1,822	2,660
Axis Securities Ltd	13,550	1,790	2,710
Emkay Global Financial Services Ltd	13,214	1,761	2,550
Average	13,546.43	1,856.43	2,709.50

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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