Page Industries Q2 Results: Stock tanks 13% after volume growth lags guidance, FEMA violation concerns

Résumé détaillé

Page Industries' sales volumes during the quarter stood at 59.7 million pieces, growing at 5.5% from last year. For the first half of the year, the sales volume stood at 5.6% year-on-year. The management, in the June quarter, had maintained its aspiration to grow volumes by double digits during the full financial year.

Shares of Page Industries Ltd. fell as much as 12.5% on Thursday, November 12, in response to its September quarter results. The numbers was subdued on a year-on-year basis across parameters.

Page Industries reported revenue growth of 11.5% during the September quarter to ₹1,439.6, compared to ₹1,291 crore it reported during the same quarter last year.

Net profit during the period stood at ₹202.5 crore, a growth of 3.8% compared to the year-ago period figure of ₹195 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) during the quarter stood at ₹300.2 crore, compared to ₹279.6 crore, a growth of 7.4% from last year.

EBITDA margin narrowed by 80 basis points from the year-ago quarter to 20.8% from 21.6% earlier.

Here's what the management said in its footnotes as part of its P&L statement:

Speaking to CNBC-TV18 on this issue, Senior Supreme Court Advocate HP Ranina said that it is wrong on Page Industries' part to say that the impact will not be material, as the impact of a FEMA violation could be material, basis the independent auditor's assessment.

Sales volumes during the quarter stood at 59.7 million pieces, growing at 5.5% from last year. For the first half of the year, the sales volume stood at 5.6% year-on-year. The management, in the June quarter, had maintained its aspiration to grow volumes by double digits during the full financial year.

"While raw material costs remained elevated, our profitability has remained within our planned range. With positive demand trends, strong brand momentum, an exciting pipeline of new product ranges and ongoing initiatives to improve operational efficiency, we look ahead with confidence," VS Ganesh, Managing Director of Page Industries was quoted as saying.

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