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Last Updated : Nov 15, 2019 03:40 PM IST | Source:

Page Industries share price up 5%

Page Industries is the licensee of Jockey International and Speedo in India and Sri Lanka.

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Representative image
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  • nselive
Todays L/H

Page Industries share price gained 4.6 percent intraday on November 15 after the management maintained its double-digit long-term margin guidance.

The stock rallied more than 22 percent after the cut in the corporate tax rate, but corrected 21 percent from its record high levels. It was quoting at Rs 24,000, up Rs 411.75, or 1.75 percent, on the BSE at 1406 hours.

"Volume growth in Q2FY20 stood at 9.14 percent. The company prepared for double-digit volume growth. Penetration in premium segment is low in India and the market share in premium men's innerwear is at 18 percent," CFO K Chandrasekar told CNBC-TV18.


The company also maintained its 20-22 percent EBITDA margin guidance, he said, adding the price hike for few products would reflect in Q3FY20.

Page Industries, the licensee of Jockey International and Speedo in India and Sri Lanka, has 2,500 distributors in India.

"We are positive on long-term outlook. We saw better footfalls in Q2 compared to last quarter," Chandrasekar said.

Jockey India's profit in the September quarter grew by 23.7 percent year-on-year to Rs 115 crore and revenue increased 12.3 percent to Rs 775.4 crore.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) rose 4.5 percent year-on-year to Rs 149 crore, but margin contracted 150bps to 19.2 percent.

Profit in the first half of FY20 grew by 4 percent to Rs 225 crore and revenue rose 7 percent to Rs 1,610 crore compared to same period last year.

The working capital has worsened YoY. While inventory increased 21 percent YoY and declined 4 percent over March’19, debtors increased 18 percent YoY and 11 percent over Mar’19. Creditors declined 33 percent YoY and 11 percent over Mar’19. Therefore, net working capital increased 36 percent YoY and was flat over Mar’19. Thus, the sharp improvement in working capital that was expected after 1QFY20 results has not panned out," said Motilal Oswal which has neutral rating on the stock.

The board has declared two interim dividends, amounting to Rs 103 per share (51 percent payout excluding DDT in first half of FY20).

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First Published on Nov 15, 2019 03:40 pm
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