Page Industries (NSE: PAGEIND) – Premium products help improve realization
Page Industries is engaged in manufacturing, distribution and marketing of Jockey products.
Sales were up 7.5% YoY at Rs.790 Cr. in 3QFY20. Overall volumes declined 2.8% YoY. EBITDA margin contracted 490bp YoY to 17.5%. Investments in technology implementation and staff recruitment (mainly on tech and kids’ businesses) have also impacted the EBITDA margin.
Demand weakness is reflected in considerably reduced walk-ins to Exclusive Brand Outlets (EBO) stores in the last two years.
Average price for winter wear was higher, as a result of which realization growth was higher than usual. The contribution of premium products has also increased. Kids-wear has shown an encouraging demand trend. Two exclusive stores are opened for Jockey Junior during the quarter.
Expensive valuations leave no room for upside.' -