📢 5 STEPS TOWARDS WEALTH 🚀 The Indian Stock Market Way
### Page Industries Q1 FY25 Financial Analysis and Insights
#### **1. Overview of Q1 FY25 Results**
- **Revenue Growth:** Page Industries reported a revenue of ₹12,775 million for Q1 FY25, marking a 3.9% year-over-year (YoY) increase compared to Q1 FY24. The growth was driven by a 2.6% increase in sales volume, with a total of 57.4 million pieces sold during the quarter.
- **Profit After Tax (PAT):** The company posted a PAT of ₹1,652 million, a 4.3% YoY increase.
- **EBITDA and Margins:** EBITDA for the quarter was ₹2,433 million, representing a margin of 19%. This reflects a sequential growth of 2.5% from Q4 FY24, where the margin was 17.2%.
#### **2. Comparison with Previous Quarters**
- **Q4 FY24 Comparison:** The revenue for Q1 FY25 saw a slight increase compared to ₹9,925 million in Q4 FY24. PAT also grew from ₹1,450 million in Q4 FY24 to ₹1,652 million in Q1 FY25. The EBITDA margin improved from 17.2% in Q4 FY24 to 19% in Q1 FY25.
- **Q1 FY24 Comparison:** The revenue and PAT for Q1 FY25 increased YoY by 3.9% and 4.3%, respectively, reflecting steady growth despite challenging market conditions.
#### **3. Profitability & Earning Ratios**
- **Profit Margins:** The PAT margin for Q1 FY25 was 12.8%, consistent with Q1 FY24 and showing an improvement from 10.8% in Q4 FY24. This indicates that the company maintained its profitability even amidst fluctuating input costs.
- **Earning Ratios:** Company's strong balance sheet and healthy return on capital employed (ROCE) at 51% highlight its low leverage and efficient capital utilization.
#### **4. Company Overview**
Page Industries is the exclusive licensee of JOCKEY International Inc. (USA) for the manufacture, distribution, and marketing of JOCKEY® brand products in India and several other countries. The company is also the exclusive licensee of Speedo International Ltd. for swimwear and accessories in India. With a wide presence across 2,713 cities and towns in India, the company operates over 1,395 exclusive brand stores.
#### **5. Industry Overview**
The apparel industry in India is experiencing a resurgence in consumer confidence, leading to increased spending on clothing and accessories. The rise of e-commerce and digital platforms has expanded market reach, with brands now able to connect with consumers more effectively. The industry is expected to grow significantly, driven by rising disposable incomes, rapid urbanization, and a young consumer base favoring branded products.
#### **6. Peer Group Comparison**
Page Industries competes in the premium innerwear and athleisure market, where other major players include Rupa & Co., Lux Industries, and Dollar Industries. Page Industries has maintained a leadership position in this sector through its strong brand equity and extensive distribution network.
#### **7. Future Outlook**
Page Industries remains optimistic about the resurgence of demand in the coming quarters. The company is well-positioned to capitalize on the anticipated recovery in rural consumption and the continued growth of its e-commerce channel. Strategic investments in digital transformation, marketing initiatives, and inventory management are expected to sustain profitability and drive future growth.
#### **8. Important Aspects for Investors**
- **Steady Growth:** Despite a challenging market environment, Page Industries has shown resilience with steady revenue and profit growth.
- **Strong Brand Positioning:** The company’s flagship brand, Jockey, continues to dominate the premium innerwear market, while Speedo strengthens its position in the swimwear segment.
- **Operational Efficiency:** Improvements in sewing efficiency and cost management have allowed the company to maintain healthy margins without increasing product prices.
- **Digital Expansion:** The company’s focus on e-commerce and digital platforms is expected to be a significant growth driver in the future.
Overall, Page Industries' Q1 FY25 results highlight its strong operational performance, robust financial health, and strategic positioning in a growing market. Investors can consider these factors when evaluating the company's long-term potential.
Disclosure: Do not treat this document as a recommendation, we have prepared it for education purposes.
