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Informist, Thursday, Aug. 7, 2025

By Shakshi Jain

NEW DELHI – Page Industries Ltd. Thursday posted mixed results for the June quarter with its bottom line surpassing the Street's expectations but the top line falling short of analysts' consensus estimate. A marginal year-on-year decline of 0.6% in total expenses in the June quarter helped the company's net profit growth surpass its revenue growth by a wide margin. However, the company's net profit growth on a year-on-year basis was the lowest in four quarters. The revenue growth was at a five-quarter low. Shares of the company, which were trading 0.9% lower before it released its earnings, recovered immediately after the announcement to trade at INR 46,275, up 0.2%. The stock ultimately closed 1.2% lower at INR 45,760.

The apparel manufacturer and distributer posted a net profit of INR 2.01 billion for the June quarter, up 22% on year as well as sequentially. Analysts had expected the company to report a bottom line of INR 1.97 billion. Its revenue from operations rose slower at 3.1% on year to INR 13.17 billion, lower than the INR 14.00 billion expected by analysts. Sequentially, the top line was up 20%.

The company's other income for Apr-Jun rose 15% on year but fell 26% sequentially to INR 148 million. Its tax cost for the quarter rose 21% on year to INR 694 million. The total expenses declined to INR 10.61 billion, led by a 78% on-year fall in expenses tied to inventories of finished goods, work-in-progress, and traded goods. These expenses added up to INR 411.26 million in Apr-Jun, down from INR 1.91 billion a year ago. Meanwhile, expenses related to purchases of stock-in-trade shot up 74% on year to INR 2.34 billion in Apr-Jun. The employee benefit expense rose 16% to almost the same amount. The cost of materials consumed and other expenses each rose over 1% on year in the June quarter to INR 2.63 billion and INR 2.50 billion, respectively.

"Consumption pattern this quarter was subdued, affecting tertiary sales growth. Shift in festive consumption in the month of April when compared to last year and heightened geo-political tension in early parts of May partly contributed to the same," the company said in a statement. The reference was to the brief military confrontation between India and Pakistan in May in the aftermath of the terrorist strike in Pahalgam in April. The company added that with product pricing remaining unchanged, its focus and efforts have been to maintain operating margins through efficient raw material sourcing, optimum manpower deployment, focused marketing investments, and digital transformation.

The exclusive licensee in India of Jockey International Inc. and Speedo International Ltd. clocked a volume of 58.6 million pieces in the June quarter, up 1.9% on year. The company's earnings before interest, tax, depreciation, and amortisation rose 21% on year in the June quarter to INR 2.95 billion. Its EBITDA margin improved by 340 basis points on year to 22.4%. This was due to an "efficient raw material sourcing strategy and continuing cost optimisation measures along with digital transformation initiatives", Page Industries said.

During the quarter, Page Industries successfully completed a pilot run of a modern distribution management system though Salesforce and is on track for full deployment, the company said. "Migration to SAP S4 HANA is progressing as per plan," it said. The company also started commercial production at its manufacturing facility in Odisha and plans to ramp up output in the coming months.

Presenting the outlook for the following quarters, the company said it is hopeful of demand recovery amid interventions to ramp up consumption. "With all-time-low inflation, lower borrowing rates, and direct tax rates rationalisation, higher liquidity will strengthen consumer's buying ability," it said in the statement. "Deeper adoption of ecommerce will also significantly aid in expanding the organised retail eco-system."

Page Industries declared an interim dividend of INR 150 per share, the record date for which is Aug. 13.  End

Edited by Rajeev Pai

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