Q1FY22 Result Analysis
- Page Industries Limited has reported a healthy quarter on yearly basis but has underperformed sequentially.
- The Revenue from Operations of the company has increased significantly by 76.1% YoY from Rs. 284.8 Cr. in Q1FY21 to Rs. 501.5 Cr. in Q1FY22. The same has gone down sequentially by 43.1% from Rs. 880.8 Cr. in Q4FY21.
- The Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) of the company stood at Rs. 34 Cr. in Q1FY22 against negative EBITDA of Rs. 34.7 Cr. in Q1FY21 and is down by around 80% QoQ from Rs. 169.8 Cr. in Q4FY21.
- The EBITDA margin of the company is at 6.8% in Q1FY22 against 19.3% in Q4FY21.
- The Profit Before Tax (PBT) of the company is Rs. 14.5 Cr. in Q1FY22 against Rs. 152.6 Cr. down by 90.5% QoQ.
- The Net Profit of the company is Rs. 10.9 Cr. in the quarter ended 30th June 2021 against Rs. 115.6 Cr. in Q4FY21 down by 90.5% QoQ.
Page Industries- Q1FY22 Results
- For the current financial year 2021 -22, the Board of Directors at their meeting held on August 12, 2021, have declared 1"' interim dividend ~ 50 per equity share respectively.
- Growth in Revenue was aided by increased footfall in stores as lockdown across cities was gradually lifted.
- EBITDA Margin was at 6.8% due to under absorption of wages, selling, and corporate overheads.
- Cash and cash equivalents at Rs. 327 Cr., up 89% YoY. Liquidity continues to remain strong with robust cash flow management.
- Liquidity continues to remain strong with robust OPEX, CAPEX, and cash flow management.
- Retail stores of channel partners’ active as of the end - June 2021
- 61% of our 80,250+ MBO’s are active
- – All 939 EBO’s are active
- – All 2,380+ LFS are fully functional.
Earnings Call Highlights:
- Revenue grew by 70% in volume terms in the first quarter of Q1FY22.
- More than 61% of MBOs outlets were active at June ends. By end of June all Exclusive Brand Outlets (EBOs), and Large Format Stores (LFS) were open.
- Manufacturing Facility and Warehousing have now returned to normalcy.
- Sales Trend has been on an increasing trend, where a raw business looks very bullish barring the lockdown period.
- The company has 39 EBOs that are exclusive to Jockey Junior.
- Continue to expanding presence in existing market geography as well as strengthening distribution system.
- Jockey is now present in 2,895 Cities and Towns.
- EBITDA Margin affected by lower revenue, wages, selling overhead, and carpet overheads under absorption.
- Growth is more towards the Athleisure side where the company is focusing to penetrate more into the market.
- Expanding the footprints in Central India, Uttar Pradesh, Maharashtra, West Bengal, and Rajasthan.
- Raw Material Prices seem to be weakening.
- With the rise in raw material prices, the company took various cost control measures.
- The company took the price increase of around 3.5% to 5% depending upon the brands.
- If Raw MAterical Price does not settle or goes up in the future, the company may take pricing action. In Case, If the RM prices go up by 6%, the management may take a price hike of around 3%.
- In FY21, the e-Commerce business contributed 7.4% to the revenue of the business.
- In Q1FY22, the e-Commerce contribution is 19% and YoY growth is 2.5x.
- Tied with major online portals like Amazon India, Zivame, Paytm, Flipkart, etc. The company also owns its self e-commerce platform.