Analyst Concall
Demand volatile now amid macro uncertainties, says Page Ind
This story was originally published at 20:49 IST on 7 August 2025
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--Page Ind: Targeting double-digit volume growth when demand normalises
--CONTEXT: Comments by Page Industries' mgmt in post-earnings analyst call
--Page Ind: Controlling operating expenses but not investments in IT, others
--Page Ind: Gross margin growth YoY in Q1 on cut in labour costs per minute
--Page Ind: Current demand environment very volatile
--Page Ind: Ad spend 3.5% in Q1; 4-5% expected for FY26
--Page Ind: Don't see need to hike prices due to value proposition in pdts
--Page Ind: Expect to return to 19-21% operating margin range in coming qtrs
--Page Ind: Online sales growing faster than offline sales for company
--Page Ind: Q1 growth on the back of store expansion
By Shakshi Jain
NEW DELHI – Page Industries Ltd., which sees the current demand environment as "very volatile" amid large macroeconomic uncertainties, is aiming to return to a double-digit volume growth once "things normalise", a top company executive said Thursday in a post-earnings conference call with investors and analysts. The exclusive licensee in India of Jockey International Inc. and Speedo International Ltd. recorded a volume of 58.6 million pieces in the June quarter, up 1.9% on year.
"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. In the June quarter, Page Industries clocked a 22% on-year growth in its bottom line to INR 2.01 billion. However, its growth in revenue from operations rose only 3.1% on year to INR 13.17 billion during the first three months of the current financial year.
The revenue growth recorded in the June quarter came on the back of store network expansion, as per the company. "...we continue to expand but where we've seen a stress is largely at a like-to-like growth level," the company's management said.
Page Industries presently has 1,490 exclusive brand stores for Jockey and 38 exclusive outlets for Speedo, the company said in a presentation to investors.
Page Industries also said it does not see the need to increase prices in the light of value proposition offered by its products. Further, while the company is controlling operating expenses, it is not holding back on investments due to a long-term positive outlook. "...be it the strategic investments on the IT (information technology) side, be it beyond the distribution management system, SAP S4 HANA, by expanding capacities, by way of new plants which are coming up, one in Odisha and one in Karnataka, by coming out with new product ranges and investments in R&D (research and development), this will definitely continue unabated," the management said.
As a result, the company expects to return to an operating profit margin of 19-21% in the coming quarters. "More because our marketing spend will be in the range of 4-5%. As we go ahead, our IT spend will be slightly on the higher side," the company's management said. In the June quarter, the company recorded a lower marketing spend of 3.5%. Its earnings before interest, tax, depreciation, and amortisation margin expanded to 22.4% in the reporting quarter from 19% a year ago. According to the company, gross margin improvement in Apr-Jun resulted from lower labour costs per minute.
The company's management said currently, online sales are growing faster than offline sales. In the June quarter, Page Industries expanded its product range through JKY Groove, which is targeted at a younger audience. "The initial response to the collection has been very encouraging," the company said.
On Thursday, shares of the company ended at INR 45,760 on the National Stock Exchange, down 1.2% from the previous close. End
Edited by Tanima Banerjee
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