Page Industries Ltd announces Q1FY21 earnings

Page Industries, India's leading apparel manufacturer announced its financial results for the quarter ended 30th June 2020 today.

Financial Highlights for Q1FY21

- Revenue down 47% QoQ and 66% YoY to Rs. 2,848 million. This quarter witnessed the full impact of Covid-19 lockdowns. As of now, more than 80% of our Multi Brand Outlets, 96% of our EBOs and 90% of our Large Format Stores are fully functional.

- The total operating cost was controlled effectively and reduced by 34% QoQ and 37% YoY to Rs. 1,717 million. This was achieved without any employee/worker lay-offs and salary cuts.

- Profit after Tax for the year stood at Rs. (396) million, as compared to Rs. 1,107 million in Q1FY20. This is primarily on account of lower revenues resulting in lower absorption of wages and fixed cost.

- The cash & cash equivalent has increased by 56% during the quarter to Rs. 1,734 million, due to efficient working capital management. We continue to have a strong balance sheet and not borrowed any additional funds during this period.

Commenting on the results, Managing Director, Mr. Sunder Genomal said, "While this quarter saw a significant impact of the Covid-19 lockdowns, the operations partially resumed from May. We are witnessing an increasing trend of sales with greater demand in e-commerce and athleisure product category. We have seen our amazing teams put in tremendous efforts across sales and operations and are confident of getting back on track to previous year's level of sales and operations as soon as the pandemic is behind us. We continue to remain confident of the medium term given our strong business model, product portfolio and healthy balance sheet.

We are witnessing increasing propensity for online shopping, therefore, our e-commerce business has shown significant growth and is expected to remain strong. We have launched new stores that allow us to continue to serve our customers with the best shopping experience while minimising their risk of contracting COVID-19. We are confident that we will efficiently manage our business during this situation and emerge stronger due to our strong brand, loyal customers and efficient financial management.

There is a huge potential market for all our product categories. We have always continued to invest in our brands, both online and offline, as well as at point-of-sale. In addition to our strong business presence and robust balance sheet, we continue to strengthen the business across all facets. We will continue our unrelenting endeavour to satisfy consumers with the finest products in terms of style, design, comfort, fit and quality in both Jockey and Speedo.

Overall, we remain very optimistic for the future and continue to strive to generate and deliver financial and non-financial value for all our stakeholders".

Shares of PAGE INDUSTRIES LTD. was last trading in BSE at Rs.19790.95 as compared to the previous close of Rs. 19154.45. The total number of shares traded during the day was 1886 in over 959 trades.

The stock hit an intraday high of Rs. 20098.4 and intraday low of 19280. The net turnover during the day was Rs. 37271497.

Source : Equity Bulls

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