Page Industries Stock Hits A Two-Year High On Record Q3 Profit
Shares of Page Industries Ltd. jumped to the highest in more than two years after the maker of Jockey underwear and Speedo swimwear reported record profit in the third quarter.
The company's net profit rose 77% over the year earlier to Rs 153.7 crore in the October-December period, according to an exchange filing. That compares with the Rs 124-crore consensus estimate of analysts tracked by Bloomberg.
Its revenue increased 17% to Rs 927.1 crore, against the Rs 865.5-crore forecast.
"We are encouraged by the strong demand in all our product categories. The athleisure and kids categories have particularly shown very promising growth and acceptance," Managing Director Sundar Genomal was quoted as saying in the filing.
Other highlights (year-on-year)
- Operating profit or Ebitda jumped 63% to Rs 263.2 crore, compared with the estimated Rs 183.7 crore.
- Margin expanded nearly 700 basis points to 24.4%. Analysts had pegged the metric at 21.2%.
The company, according to the filing, has repaid all outstanding debt during the quarter and is now debt-free. Liquidity in the form of cash and cash equivalents rose to Rs 494.1 crore, a growth of 23% sequentially and 275% year-on-year.
Gross margin for the period stood at 40.7% compared with 38.2% a year ago.
"Given our strong and proven business model, wide product portfolio, efficient financial management and a very loyal customer base, we continue to remain very confident of our medium- to long-term prospects," Genomal said.
Shares of Page Industries gained as much as 3% after the results were announced on Wednesday to Rs 31,225 apiece—the highest since October 2018. The stock is up for the second straight session.
Of the 21 analysts tracking the company, eight have a 'buy' rating, seven suggest a 'hold' and six recommend a 'sell'. The stock is trading 24% higher than its Bloomberg consensus 12-month price target of Rs 23,233.