Earnings Review
Page Ind posts highest net profit growth in three quarters
This story was originally published at 17:25 IST on 5 February 2025
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--Page Ind Oct-Dec net profit INR 2.05 bln
--Analysts saw Page Ind Oct-Dec net profit INR 1.86 bln
--Page Ind Oct-Dec net profit INR 2.05 bln vs INR 1.52 bln year ago
--Page Ind Oct-Dec revenue INR 13.13 bln vs INR 12.26 bln year ago
--Page Ind to pay INR 150 per share interim dividend
--Page Ind Apr-Dec net profit INR 5.65 bln vs INR 4.61 bln year ago
--Page Ind Apr-Dec revenue INR 38.37 bln vs INR 35.77 bln year ago
--Page Ind Oct-Dec raw material cost INR 2.69 bln vs INR 2.85 bln year ago
--Page Ind Oct-Dec EBITDA INR 3.03 bln, up 33.6% on year
--Page Ind Oct-Dec EBITDA margin 23.0% vs 18.5% year ago
--Page Ind Oct-Dec sales volume 57.8 mln pieces, up 4.7% on year
--Page Ind: Subdued demand in Oct-Dec affected operating environment
--Page Ind:Demand rose initially Oct-Dec on festivals but fizzled out later
--Page Ind: E-commerce channels continue to outperform other sales channels
--Page Ind: Sector faces near term headwind on weak consumer sentiment
--Page Ind: Athleisure, innerwear seen pivotal growth drivers
By Noopur Bhandiwad
MUMBAI – Page Industries Ltd.'s net profit grew 34% on year in the December quarter, the highest in three quarters, driven by consistent revenue growth and control over operating expenses, mainly a 6% fall in the cost of raw materials. The net profit was higher than the Street's estimates. The company's revenues grew in mid-single digits on year but missed the analysts' estimates.
Page Industries reported a net profit of INR 2.05 billion for the December quarter. Analysts had estimated the company to report a net profit of INR 1.86 billion. Its revenues for the December quarter were INR 13.13 billion, up 7% on year. Sequentially, the net profit and revenue of the manufacturer and seller of Jockey and Speedo brands rose 5% each. The company declared an interim dividend of INR 150 per share with a record date of Feb. 13.
For the nine months ended December, the company reported a net profit of INR 5.65 billion, up 23% from 4.61 billion a year ago. The company's revenues for the period rose to INR 38.37 billion from INR 35.77 billion a year ago. The company posted earnings before interest, taxes, depreciation, and amortisation of INR 3.03 billion, up 34% higher on year. The company sold 57.8 million pieces in the December quarter, up 4.7% on year.
The company's EBITDA margin improved sharply to 23.0% in Oct-Dec from 18.5% a year ago.
The company's total expenses rose nearly 2% on year to INR 10.52 billion. Of this, other expenses were up almost 2% to INR 2.31 billion. The company's purchases of stock-in-trade costs surged 54% to INR 2.23 billion, the highest in seven quarters. The company spent INR 2.06 billion on its employee benefits, up 5% on year. The cost of materials declined nearly 6% on year and boosted the company's bottom line. Of the INR 530 million increase in net profit, INR 165 million came from savings on the cost of raw materials.
Dampened consumer sentiment poses a risk to the domestic apparel retail sector, with subdued demand conditions continuing to affect the operating environment, the company said. However, the company was positive on long-term prospects due to economic expansion, urbanisation, and rising disposable incomes. The company said the athleisure and the innerwear segments are poised as pivotal growth drivers.
The company also said the festive season propelled demand at the start of the December quarter but fizzled out eventually. Modern retail channels, including exclusive branded stores and e-commerce, continue to grow impressively, with e-commerce channels continuing to outperform other sales channels, the company said.
Shares of the company rose nearly 3% after the company announced the earnings, but gave up the gains to end at INR 45,795.15 on the National Stock Exchange Wednesday, down 2.4%. End
Edited by Saji George Titus
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