Page Industries Ltd Q1 FY23 Result Updates.
Strong net profit growth & margin performance.
In Q1FY23, company reported a 167% YoY & 20.7% QoQ increase in sales to Rs 13,413 mn. Strong topline growth was backed by a volume growth of 150% YoY & 26% QoQ at 63 mn pieces. Company has taken a price increase of 3.5%-4.5% in Q1FY23.
The Earnings before interest, tax, depreciation and, amortization (EBITDA) increased by 771% YoY & 11.5% QoQ at Rs 2,978 mn. Company has been able to contain the impact of steep increases in raw material prices with a combination of price increase, better inventory management & cost control.
Net profit stood at Rs 2,070 mn up 1791% YoY & 8.7% QoQ. Board of Directors of the company has declared an interim dividend of Rs 60 per equity share.
Volume growth was led by growth across all its product categories.
Page Industries Ltd. (PAGE), reported strong topline growth in Q1FY23, with revenue up by ~167% YoY on a low base of last year backed by volume growth of 150% YoY & 26% QoQ. Volume growth was led by growth across all its product categories which is backed by an increase in distribution network, good demand traction in EBO’s & e-commerce channel. Growth was same across both primary & secondary sales channel. In Q1FY23 company has added 13 EBO’s & now has 1,144 EBO’s stores. Also it has added 3,167 MBO’s and is now present across 1,13,715 stores across India. Company has planned a capex of Rs 4500 mn in FY23 for capacity expansion and investment in increasing digital capabilities.
Demand was good across all its product categories and expects similar trend to continue. Management highlighted that there was good growth across all distribution channels. Demand was good across tier 3/4 cities along with metro and tier 1 cities. Company has taken a price hike of 3.5%-4.5% in Q1FY23 to pass on the impact of raw material inflation. Company has 16%-18% market share in men’s innerwear and a single digit market share in womens, athleisure, kids’ category which provides large opportunities for growth going forward.
Company has been able to contain the impact of steep increase in raw material prices with a combination of price increase, better inventory management and cost control. E-commerce sales contribution is 8.5%, which was 9% during pandemic period. Contribution from MBO’s and modern trade continue to be the same.
At the end of Q1FY23 cash & cash equivalent stood at Rs 3,144 mn vs Rs 2,835 mn QoQ.
The shares of Page Industries Ltd are trading at Rs. 49,517, down by 0.84%.
Valuations:
The return on equity (ROE) is 14.4% for the quarter ended June 2022. The price-to-earning (P/E) ratio stood at 75.2. The return on capital employed (ROCE) for the company is 67.2%. The price to book value of Page Industries Ltd is 50.7. The EV/EBITDA is 51.4. EPS during the quarter came at Rs. 657.