- 12 Aug 2022
- ICICIdirect Research
Page delivers robust performance amid challenging scenarioPAGEIND - 38597 Change: 369.25 (0.97 %)
News: On a favourable base, Page revenue for Q1FY23 grew 167% YoY to Rs 1341.3 crore (I-direct estimate: Rs 1239.2 crore, three-year CAGR: 17%). Owing to RM inflationary pressure, gross margins declined 320 bps YoY (down 60 bps vs. pre-Covid levels) to 54.5% (I-direct estimate: 56.8%), However, on account of positive operating leverage, EBITDA margins stood at 22.2% (I-direct estimate: 22.2%). Absolute EBITDA grew at an impressive three year CAGR of 17% to Rs 297.8 crore (I-direct estimate: Rs 275.1 crore). Tracking robust operational performance, PAT was at Rs 207.1 crore (I-direct estimate: Rs 190 crore, Q1FY22: Rs 10.9 crore, three-year CAGR: 23%).
View: Page Industries delivered a strong financial performance in a challenging business scenario. Over the last two years, the company has expanded its MBO network from 65000 outlets to 115000 outlets, which has enabled it to capture demand from new geographies and add to its customer base. Category wise, growth was broad based with healthy recovery witnessed across all segments (men’s, women athleisure and kids). Management continues to monitor the ongoing inflation concerns and expects to maintain EBITDA margin of around 21-22% on a sustainable basis. The company’s products are witnessing strong demand and the management expects the trend to continue. All its channels are fully operational and the company is witnessing increased momentum in sales across all product categories backed by expansion in its product portfolio and existing network.