Why Page Industries Share Price is Failing

The Indian textile sector has been facing headwinds for the past few quarters due to high cotton prices and weak demand.

Even the best textile stocks in India saw a fall in numbers in 2022.

Page Industries was no exception to this downfall. In the past one year, the company's share price has fallen by 10.7%. On a YTD basis its share price is down 11%.

The stock is under steep pressure once again after the company announced its Q4 results. It touched it 52-week low of Rs 34,968.6 today.

Let us take a look at how the company performed.

Poor Q4 results

For the March 2023 quarter, the company's total revenue fell 13% YoY at Rs 9.7 bn. Rising cotton price and softening demand market led to a fall in company's numbers.

Due to the decline in revenue, the earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 50% to Rs 1,340 m from Rs 2,670 m.

EBITDA margins too fell to 13.9%.

The company's net profit came in at Rs 780 m. This is 59% lower compared to Rs 1.9 bn reported in the corresponding period of the last year.

Net profit margins stood at 8.1%.

The company's board also declared a fourth interim dividend for the financial year 20-2023, of Rs 60 per equity share. The record date fixed for the payment of interim dividend is 2 June 2023 and payment is on or before 23 June 2023.

What next?

The company's quarterly financial figures are negative but the overall performance of the company during the whole financial year was good.

For the financial year 2023, the company reported revenues of Rs 4.8 bn, up 23%, compared with Rs 3.9 bn in the previous financial year. Volumes for the year rose 13% to 215.6 m.

Net profit for the year stood at Rs 5.7 bn higher by 6% YoY in the financial year 2022.

The company is undertaking various expansion plans. It is ramping up both manufacturing and sales capacity. It is also expanding its channel presence in distribution, exclusive brand outlets, large format stores, and e-commerce.

How the expansion plans pan out in the future remains to be seen.

How Page Industries share price has performed recently

In the past five days, Page Industries' share price fell by 10.6%. On a YTD basis, it fell 10.6%.

In the past one year, it is down 10.3%.

Page Industries shares touched a 52-week high of Rs 54,262.3 on 21 October 2022 and a 52-week low of Rs 34,968.6 touched today on 26 May 2023.

About Page Industries

Page Industries Limited is an India-based company that is engaged in the business of manufacturing and trading garments. The company offers knitted garments.

It further offers a range of products for men, women, and children. The company is engaged in the manufacturing, distribution, and marketing of Jockey products.

Page Industries holds the license of SPEEDO, an international brand for swimwear. The company's Jockey brand products are sold through exclusive brand outlets (EBO), large format stores (LFS), multi-brand outlets (MBO), traditional hosiery stores, and multi-purpose stores, spread across India. It also sells its products online.

It has approximately 930 EBOs, which includes, 46 Jockey Woman EBOs catering to its women customers. It has six operational EBOs outside India, four in UAE, and two in Sri Lanka.

The Speedo brand is available in 1,300 stores, 34 EBOs, and 15 large format stores spread across 230 and more cities.

For more details about the company, you can have a look at the Page Industries company fact sheet and quarterly results on our website.

You can also compare Page Industries with its peers:

Page Industries vs Rupa & Co

Page Industries vs Lux Industries

Page Industries vs Bombay Dyeing

Page Industries vs Arvind

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