Page Industries Q3 concall ( Jockey + Speedo ) –
Q3 sales at 1223 cr, up 3 pc yoy
Volumes down 11 pc yoy
Margins also down. Compression due high cost RM purchased previously
Also, lower absorption of fixed costs due volume de-growth led to higher percentage of Op-expenses
Resumed normal A&P spends
Current EBOs – 1228, MBOs – 1.2 lakh, 2900 LFS (like-Central,Lifestyle etc)
Secondary sales were better than primaries in Q3
EBITDA at 193 cr, de-grew by 23 pc
PAT at 123 cr, de-grew by 29 pc
Q4 demand still not back with full force
Expect recovery in Q1 FY 24
Effect of lower cost inventory should start flowing in from Q4
Company continues to be aggressive on EBO/MBO distribution expansion. Strongly believe that slowdown is a short term phenomenon
Kids products growing as per plan
In house vs Outsourced production at aprox 67:33
Focussing on Middle East mkts for exports. Not going after Sri Lanka and Nepal at the moment due macro turbulence
Current number of rural only distributors at 150… double vs last few years. Rural expansion drive to continue
Slowdown in Q3 was more in athleisure, out of home categories. Men and Women undergarments continued to grow in single digits
High cost inventory almost consumed fully as we speak. However, capacity utilisations need to improve for meaningful margin recovery
A&P spends at 4 pc
Disc: not invested. Planning to take up a tracking position
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