Page Inds

Page Industries exports an underwear and sportswear worldwide. Its customers include Jockey licensees in Europe, Middle East, and Asia, Jockey UK, Jockey USA.

The stock price was in the red yesterday on news that its promoters had sold stake for personal use. They sold 2.2% stake and post this, the total promoter holding in the company stands at 49% from 51% earlier. The company had come out with an IPO in 2007 and at that time, promoters stake was at 75%, which over the years has been gradually coming down. In a TV interview yesterday, the CEO said that going ahead, we could see some more stake sale and urged the market to not get perturbed as they were committed to the business. The market remains cautious.

On the financial front, for Q3FY16, the company posted a 15% (YoY) rise in net sales at Rs.433 crore. EBITDA rose 6% at Rs.83 crore but margins dipped marginally from 20.69% to 19.17%. Net profit for the quarter rose 15% at Rs.52 crore. Its 9MFY16 net profit of Rs.175 crore is already 89% of its FY15 profit thus holding the promise of a much better FY16 ending.

The company has brought about a 5% price hike in Q4 and this means a 0.5% addition to the margins but this could get eaten up by wage hikes and other costs.