Page Inds declines after posting Q1 net loss of Rs 40 cr

Page Industries fell 1.78% to Rs 19,311.45 after the company reported net loss of Rs 39.55 crore in Q1 June 2020 compared with net profit of Rs 110.66 crore in Q1 June 2019.

Lower Q1 PAT was primarily on account of lower revenues resulting in lower absorption of wages and fixed cost. Revenue from operations slumped 65.89% to Rs 284.80 crore in Q1 June 2020 over Q1 June 2019. This quarter witnessed the full impact of COVID-19 lockdowns. As of now, more than 80% of the firm's multi-brand outlets, 96% of exclusive brand outlets (EBOs) and 90% of large format stores are fully functional.

Consolidated pre-tax loss stood at Rs 52.37 crore in Q1 June 2020 compared with pre-tax profit of Rs 169.86 crore incurred in Q1 June 2019. The Q1 earnings were announced during trading hours today, 3 September 2020.

The total operating cost was controlled effectively and reduced by 34% quarter-on-quarter and 37% year-on-year to Rs 171.70 crore. This was achieved without any employee/worker lay-offs and salary cuts. The cash & cash equivalent has increased by 56% during the quarter to Rs 173.40 crore, due to efficient working capital management. Page Industries continues to have a strong balance sheet and not borrowed any additional funds during this period.

Commenting on the Q1 performance, Sunder Genomal, the managing director (MD) of Page Industries, said: "While this quarter saw a significant impact of the COVID-19 lockdowns, the operations partially resumed from May. We are witnessing an increasing trend of sales with greater demand in e-commerce and athleisure product category. We have seen our amazing teams put in tremendous efforts across sales and operations and are confident of getting back on track to previous year's level of sales and operations as soon as the pandemic is behind us. We continue to remain confident of the medium term given our strong business model, product portfolio and healthy balance sheet."

"We are witnessing increasing propensity for online shopping, therefore, our e-commerce business has shown significant growth and is expected to remain strong. We have launched new stores that allow us to continue to serve our customers with the best shopping experience while minimising their risk of contracting COVID-19. We are confident that we will efficiently manage our business during this situation and emerge stronger due to our strong brand, loyal customers and efficient financial management."

"There is a huge potential market for all our product categories. We have always continued to invest in our brands, both online and offline, as well as at point-of-sale. In addition to our strong business presence and robust balance sheet, we continue to strengthen the business across all facets. We will continue our unrelenting endeavour to satisfy consumers with the finest products in terms of style, design, comfort, fit and quality in both Jockey and Speedo. Overall, we remain very optimistic for the future and continue to strive to generate and deliver financial and non-financial value for all our stakeholders," he added.

Page Industries is the exclusive licensee of JOCKEY International Inc. (USA) for manufacture, distribution and marketing of the JOCKEY brand in India, Sri Lanka, Bangladesh, Nepal and the UAE. Page Industries is also the exclusive licensee of Speedo International for the manufacture, marketing and distribution of the Speedo brand in India.

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