Top Mutual Funds
- 27 May 2022
- ICICIdirect Research
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PAGE POSTS STRONG PROFITABLE GROWTH DESPITE RM PRESSURE
News: Page Industries reported yet another stellar show with PAT coming in at an all-time high despite challenging scenario. Results were above our estimates across all parameters. Key positive surprise was company clocking in 24% EBITDA margins despite RM inflationary pressure. On a high base, revenue for the quarter grew 26% YoY to Rs. 1111.1 crore (I-direct estimate: Rs. 1036.7 crore, three-year CAGR: 22%). Volumes grew by 8.7% YoY to 50 million pieces, while average realisations improved 16% YoY to Rs. 221/piece (price hike was ~8% which was taken in Jan 2022). Company continued to enhance its distribution touchpoints, wherein it added 5500 (FY22: ~32500) taking the total count to 110548 touchpoints. FY22 was a landmark year for exclusive stores as it crossed 1000+ stores (added 193 stores in FY22). Tracking healthy operational performance, PAT grew by 65% YoY to Rs. 190.6 crore. Liquidity positon remains robust with cash worth Rs. 283 crore
Views: The 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. The company is striving to increase the capacities to meet the enhanced demand. 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. The management expects to sustain healthy revenue trajectory and targets to its sales to reach USD 1 billion by FY26
Impact: Positive