Page Industries Q3 profit rises 13.6%, but shares slip as margins shrink

Apparel manufacturer Page Industries Ltd Thursday reported a 13.6% increase in net profit for the quarter ended December 31, 2021, even though revenue expanded at double the pace.

Net profit for the third quarter rose to Rs 174.6 crore from Rs 153.7 crore a year earlier, the company said.

Revenue surged 28.3% to Rs 1,189.8 crore from Rs 927 crore in the third quarter of 2020-21.

Page Industries is the exclusive licensee of Jockey International Inc. (USA) for making and marketing the Jockey brand of products in India, Sri Lanka, Bangladesh, Nepal, Oman, Qatar, Maldives, Bhutan and the UAE. It is also the exclusive licensee of Speedo International Ltd for the Speedo brand of sportswear in India.

The company’s share price fell 3.8% on Thursday after the results announcement to end at Rs 40,775 apiece on the BSE. The shares have jumped nearly 50% from a 52-week low touched in February last year but have lost around 10% since hitting a one-year high last month.

Other key highlights

1) EBITDA margin for Q3 at 21.1 %, on par with 21.5% for Q2 but down from 24.4% a year earlier due to high raw material prices.

2) Profit after tax margin for Q3 at 14.7%, compared with 14.8% in Q2 but 16.6% a year earlier.

3) Cash and cash equivalents at Rs 556 crore, up 13% year on year.

4) Revenue for nine months ended Dec 31 at Rs 2,775.4 crore, up 42.2% year on year.

5) Nine-month EBITDA margin at 18.7%, compared with 18.3% year on year.

6) Nine-month profit after tax at Rs 346 crore, up 53.8% year on year. PAT margin at 12.5%.

Management commentary

Page Industries Managing Director Sunder Genomal said sales momentum picked up significantly during the current financial year across all its product categories backed by expansion in its portfolio and existing network.

Also, the liquidity position remains strong thanks to robust cash flow management, the company said.

“We are well poised on a growth trajectory and remain optimistic on delivering sustainable growth over the long-term. E-commerce continues to witness an increasing trend and our investments in warehousing, technology and logistics support helped not only in strong execution but also in delivering profitable growth,” Genomal said.

“With a strong and proven business model, wide product portfolio, efficient financial management and a very loyal customer base, we remain committed to continue creating value for our stakeholders,” Genomal added.

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