Shares of Page Industries hit a 52-week low of Rs 19,730 apiece on Monday, plunging 10 per cent on the BSE in intra-day deal after the company delivered its worst-ever quarterly performance. While the revenue grew flat, earnings declined mainly due to weak demand, high base and intensifying competition in the March quarter (Q4FY19) earnings.
The company’s net profit declined 20 per cent year-on-year (y-o-y) at Rs 394 crore coupled with nil growth in sales at Rs 608 crore on sequential basis. Ebitda (earnings before interest, tax, depreciation and amortization) margin too declined by 440 basis points (bps) y-o-y to 19.7 per cent.
"The reported negative growth in profit after tax (PAT) of Q4FY19 is a result of a one-time gain from sales schemes reversals and Goods and Services Tax (GST) transaction credits in Q4FY18, and higher sales schemes incurred in Q4FY19," the company said in a BSE filing.
At 10:08 am, the stock was trading 8.4 per cent lower at Rs 20,120 per share against a 0.37 per cent rise in the benchmark S&P BSE Sensex. A combined 1,07,451 shares have changed hands on the counter on the BSE and NSE so far.The stock today fell below its previous low of Rs 20,310 touched on February 20, 2019 on the BSE.
"Given strong return ratios led by increased outsourcing, Page Industries’ dominant position and retail reach supported by the current market share of 20 per cent in men’s premium innerwear, 5-6 per cent in women’s and 6-8 per cent in outerwear target market should help the stock should find takers at lower levels," analysts at Systematix Shares and Stocks said in result update.
As the company plans to invest aggressively to drive growth and increase manufacturing capacity, the brokerage firm has built-in lower growth trajectory and incremental margin pressure given heightened competition especially in the men’s segment.