Page Industries on Tuesday (7 April) said the national lockdown will impact sales partially for March and for the entire lockdown period.
In emergence of Covid-19 pandemic, the company temporarily shut down its facilities and offices effective 23 March 2020. The duration of the shutdown will depend upon the directive of the respective local and state governments.In view of the national lockdown, the manufacturing and sales for the entire industry for inner wear and athleisure has been affected, as these products do not fall under essential goods. Malls and retail outlets remain closed. This will impact sales partially for March and for the entire lockdown period.
Given Page's strong brands' recall, product quality and pent-up demand, the company is confident that the demand will return and increase once the situation returns to normal. The company said it is thoroughly prepared for the rebound, well organised to resume business and ramp up sales given its superior strengths in distribution and the depth of its product portfolio.
Since the manufacturing facilities have shut down temporarily during the lockdown, there is an impact on production volumes during this period. The company has enough inventory levels to carry on in Q1 June 2020 and as soon as the lockdown is lifted, operations will commence immediately.
The company expects some impact on its Q4 numbers given the loss of sales in March and any further impact will depend on the duration and the impact of the COVID-19 pandemic.
The firm reiterated that its strong balance sheet position can withstand these temporary challenges. The management is reviewing the situation on a daily basis and is initiating prompt actions to minimise impact, it said.
Page Industries' net profit fell 14.59% to Rs 87.02 crore on a 7.51% rise in net sales to Rs 793.80 crore in Q3 December 2019 over Q3 December 2018.
Page Industries is engaged in the business of manufacturing and trading of garments. The company offers knitted garments and a range of products for men, women and children. The firm is engaged in the manufacturing, distribution and marketing of Jockey products. It holds license of SPEEDO, an international brand for swim wear.
Shares of Page Industries rose 1.06% to Rs 16,679.80 amid broader rally.
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