Page Industries Q4 concall Highlights –
Q4 FY 23 results vs Q4 FY 22 vs Q3 FY 23
Sales – 969 vs 1111 vs 1223 cr
EBITDA – 134 vs 267 vs 193 cr
Margins – 14 vs 24 vs 16 pc
PAT – 78 vs 191 vs 124 cr
Volume de-growth @ 14 pc YoY and 19 pc QoQ
Page Industries Q4 concall Highlights-
Q4 FY 23 results vs Q4 FY 22 vs Q3 FY 23
Sales – 969 vs 1111 vs 1223 cr
EBITDA – 134 vs 267 vs 193 cr
EBITDA Margins – 14 vs 24 vs 16 pc(mainly due poor Opex absorption)
PAT – 78 vs 191 vs 124 cr
Volume de-growth@ 14 pc YoY and 19 pc QoQ
Distribution reach – 1.2 lakh MBOs, 1289 EBOs and 24 LFS partners ( like – Lifestyle, Spencers, Reliance Retail, Metro etc )
E-Com business up 34 pc in Q4 (YoY)
Had the revenues been at previous year levels, EBITDA would have been around 17-18 pc
Inventory at distributor/retail level had become extremely lopsided due channels buying whatever was avlb during pandemic vs what the Mkt wanted
Company implementing Auto Replenishment System (ARS) across India which is a very complex exercise and bound to cause shorterm pain
This is a major transformation for the company and is causing inventory de-stocking across the channel partners
The Mkt weakness is further worsening the situation
Company seeing some improvement already
In all probability, the worst is behind
Don’t see a need for price cuts right now
Most of high cost cotton inventory expended
Secondary sales were better than primary sales in Q4 as ARS implementation ensured slower replenishment of inventories
Demand weakness across categories wrt company’s products
Clear shift of demand from inner wear and athleisure to outerwear being witnessed in the Mkt
Aim to get back to 18-20 pc EBITDA band for FY24
Not going to cut back on advertisement, continue to be very bullish-long term
Company’s mkt share in Men’s inner wear at 17-18 pc. Has ample headroom to grow. Athleisure mkt share is in single digits
Inventory at trade level now at 45-50 days, basically at normal levels. Inventory at distributor level is also 45-50 days (got corrected by 20 days in Q4)
However, distributor level inventory is still a little lopsided due pandemic led supply-demand mismatch brought out earlier
Launched Denim category in Q4…well received by the Mkt
Gross Margins at 38 vs 41 pc YoY. 39-40 pc is the normal range for the company
Have created separate division for accessories like Towels, Socks, Caps etc due huge headroom for growth
As the demand recovers, Jockey should be the Quickest off the block …management is confident about it
Aim to grow faster in womenswear due lower base
Disc: initiated a tracking position post the fall in stock price
Hunch : the worst is over
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