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Informist, Thursday, May 8, 2025

By Shakshi Jain

MUMBAI – Page Industries Ltd. is expected to report a healthy on-year growth in its bottom line for the March quarter on the back of higher volume, price hike, and lower raw material prices, according to analysts.

The apparel manufacturer and distributor is expected to post a net profit of INR 1.4 billion for the March quarter, up 25% on year, according to the average of estimates from eight brokerages. Its revenue likely grew 9% on year to INR 10.8 billion. Sequentially, the company's bottom line is expected to fall 34% and its top line is seen lower by nearly 18%.

The highest estimate for net profit was INR 1.5 billion from Elara Securities, while the lowest was INR 1.1 billion from Morgan Stanley. The highest estimate for revenue was INR 10.9 billion from Elara Securities and the lowest was INR 10.6 billion from Morgan Stanley.

In the year-ago quarter, the company's bottom line had risen over 38% on year to INR 1.08 billion. Its top line had, however, grown only 3% to INR 9.95 billion.

"We model revenue increase of 8% year-on-year driven primarily by normalisation of demand for core categories and some pick-up in athleisure," Kotak Institutional Equities said in a note. The brokerage added that revenue growth during the reporting quarter was largely driven by volume, though some positive price movement is also expected. Motilal Oswal Financial Services anticipates revenue growth on the back of a favourable base and inventory build-up for the summer season. The brokerage estimates a 6% uptick in the company's volume in the March quarter.

The manufacturer and seller of the Jockey brand of innerwear and Speedo brand of swimwear is expected to report an earnings before interest, taxes, depreciation, and amortisation of INR 2.1 billion for the reporting quarter, according to the average of estimates from seven brokerages. The EBITDA estimates range between INR 1.8 billion by Morgan Stanley and INR 2.3 billion by Nuvama Institutional Equities.

In the year-ago quarter, the company's EBITDA was INR 1.67 billion and its operating margin was 12.4%.

Kotak estimates a 340-basis-point on-year expansion in the company's EBITDA margin for the reporting quarter on the back of a 130 bps improvement in its gross margin and sharp cost-cutting measures undertaken across the board. Elara Securities estimates a 357 bps improvement in Page Industries' EBITDA margin for the quarter, led by lower raw material prices and a change in product mix tilted towards premium and athleisure products. Motilal Oswal anticipates a 130 bps uptick in the EBITDA margin of the company, while Nuvama expects 420 bps growth in the parameter on a year-on-year basis.

Page Industries will announce its earnings for the March quarter on May 15. Investors will keenly watch the management's commentary on demand recovery, inventory levels, and digitisation initiatives, Motilal Oswal said in its report.

On Thursday, shares of the company closed at INR 45,160 on the National Stock Exchange, down 2.6% from the previous day. It is down 1.4% from its closing price on Feb. 5, when the company reported its results for the December quarter. The stock is down over 9% from its 52-week high of INR 49,849.95.

Among the 10 research recommendations on the stock available with Informist, five have a 'buy' rating on Page Industries, while three have a 'hold' rating, and two have a 'sell' recommendation. The average target price of the 'buy' recommendations is INR 47,081.

Following are the Jan-Mar earnings estimates for Page Industries based on reports from eight brokerage firms in descending order by the estimate of net profit (in INR million):

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Edited by Tanima Banerjee

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