Page Industries Q2 preview: Profit likely to take a hit amid softness in demand

Page Industries, the parent company of the famous Jockey brand, is set to report its Q2 numbers on Thursday (November 9). Zee Business analysts see the company reporting a 6 per cent year-on-year (YoY) decline in September quarter profit after tax (PAT) amid softness in demand. The garments and apparel company is estimated to log a PAT of Rs 152 crore for the period under review in comparison to Rs 162 crore clocked during the same period last year.

Revenue at the company is also likely to shrink by 2 per cent on-year to Rs 1,224 crore as volumes are estimated to decline by 2–3 per cent, added the analysts.

EBITDA, or earnings before interest, taxes, depreciation, and amortisation, that tracks a company's financial performance without taxes, loans, and capital expenses, is also expected to fall by 2 per cent on-year and come in at Rs 233 crore as against Rs 238 crore logged in the same quarter last financial year.

However, Zee Business Research estimates margins to be retained at 19 per cent during the quarter under review.

The key focus will be on the demand momentum in the athleisure segment.

Shares of the company, which also licenses the Speedo swimwear brand, over the last 3 years have zoomed by 75 per cent, while its 1-year return is at -24 per cent.

In the previous June-ended quarter, the Bengaluru-based company logged a profit of Rs 158.3 crore, down 23.5 per cent YoY. Its revenue from operations also weakened YoY and stood at Rs 1,240 crore.

With effect from September 29, the stock of Page Industries was removed from the Nifty Next 50 index.

The innerwear company, with a m-cap of Rs 41,543 crore, is a mid-cap company. The company is trading at a trailing 12-month (TTM) price to earnings of 80.9, suggesting high valuations.