Page Industries (PAGEIND) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw stable operating conditions with early signs of demand recovery, especially in rural and smaller towns, and continued focus on sustainable sales and inventory health.

• Sustained earnings in Q1 FY25 despite subdued consumption growth; continued investments in digital transformation, marketing, and technology to enhance consumer engagement and operational efficiency.

• Unaudited financial results for the quarter ended June 30, 2024, were approved and released on August 8, 2024.

• Focus on sustainable sales practices and inventory health led to increased secondary sales and improved distributor ROI.

Financial highlights

• Q1 FY25 revenue: ₹12,775 million, up from ₹12,291 million in Q1 FY24 and ₹9,925 million in Q4 FY24.

• EBITDA for Q1 FY25 at ₹2,433 million (19% margin), up from ₹2,100 million in Q4 FY24; PAT at ₹1,652 million, up 4.3% year-over-year.

• E-commerce sales grew 32% year-over-year in Q1 FY25.

• Inventory days reduced to 72 from 93 at FY24 end; working capital days at 73.

• Basic and diluted EPS for the quarter were ₹148.13, compared to ₹97.01 in the previous quarter and ₹141.98 year-over-year.

Outlook and guidance

• Management is optimistic about demand revival, especially with the upcoming festive season, but remains cautious due to past volatility.

• No price increases expected in FY25 due to stable input costs, particularly cotton.

• The $1 billion revenue target by FY26 is being revisited; growth trajectory is being recalibrated for realism and sustainability.

• Interim dividend declared for FY25 signals confidence in ongoing performance.