Page Industries

“On the volume side, I think we still remain committed towards the goal of a double-digit growth in terms of volume for the financial year. This is going to be phased across quarters.”

“And on your second observation, largely yes, majority of this should be reported in quarter two.”

“And anyway, the next three quarters, given that our goal is to hit a double-digit volume, should see above-average volume growth to make up for the shortfalls in quarter one.”

“In fact, we are now looking at augmenting capacities, investing above plan in terms of manufacturing to make sure that both in-house as well as out-source, to make sure that we're able to do justice to the demand that's coming our way.”

“We are also seeing steady progress in the scale-up of our Odisha and K.R. Pet manufacturing facilities, which will progressively enhance our production capabilities and efficiency.”

“But the large pieces, which will be backed with marketing investments, new propositions, etcetera, is going to be in the athleisure space.”

“Today, our online contribution to the overall Speedo business is upwards of 35%. And hence, the our network of multi-brand outlets for Speedo has consolidated to about 700 stores in quarter one.”

“yes, the contribution has shifted more towards the outright model. And this is largely because of quick commerce.”

“We are in strategic partnership with both of our – with majority of the marketplaces where we are operating in outright to ensure that price governance is maintained”

“If I had to combine the two, it's about 950 odd stores.”

“Consumer demand remained healthy with good traction across our key channels, including exclusive brand stores, e-commerce, and our wider retail network.”

“Fairly confident given how the demand atmosphere has been in quarter 1. So we should see recovery for us to make up for lost ground in quarter 1.”

“We don't give away secondary numbers, but I can say that secondary growth performance has been much better than primary”

“In fact, EBO has been better than Q4. We've seen quarter 1 perform better than quarter 4 when it comes to tertiary level performance and the EBOs as well as distribution secondary.”

“Our online channel also continued to deliver healthy growth.”

“So it's about 2.2% weighted average increase that we have taken in the month of May. This is on the back of 2.5%, which was taken in the month of Jan.”

“However, the full gains of the price increase has still not been realized and that's something that we'll be realizing in quarter 2 purely because of the FIFO principles that we operate in our billing.”

“What I can say for me is that it's only partially covered.”

“We believe that with this price intervention, we can operate in our targeted EBITDA range of 19% to 21%. As long as we're able to operate in that space, I think the intent would be to hold prices and drive volumes.”

“Okay, so mid of last quarter, yes, we did see inflationary conditions in the input cost, especially cotton and nylon and even synthetic packaging.”

“Inventory days was 66 in the end of quarter one, as against 73 days in the beginning of the quarter. Net working capital, days was around 54 days as against 56 days in the beginning of the quarter.”

“But I think we've reached optimum level of inventory both in the value chain as well as the inventory at Page level.”

“This year, the collection was taken to close to 500 exclusive brand stores across the country and has been received very, very well and our sell-through numbers look very good.”

“Another big piece is the collaboration with Disney and Marvel to bring in character merchandise. But this again while the go-to-market was planned towards the end of June, a large portion of revenues from this will be realized in quarter 2.”

“Some of them will go through in quarter 2 before the festive season is upon us. Quarter 1, the big ones were Groove 3, which is our street fashion line, was launched in the month of June.”

“This also opens up a window for us to collaborate with other licenses in the character merchandise space going forward.”

“This year, that moved to about seven days. So, a delta of about three days of invoiced revenue -- invoiced billing, was not reported as revenue this quarter one.”

“In terms of overall brand spends, the difference that you're seeing is because the year before last financial year, we had a large campaign for the World Cup, which was a disproportionate spend, which did not follow through in the last financial year.”

“That's because of the disruption we have experienced in the logistics and manpower towards the quarter end.”

“But yes, end of June and even now, the situation has to a large extent normalized and going forward we expect things to be stable. Of course, if there is again an escalation in the Middle East situation, it can happen differently.”

“If the input costs continue to be or resumes to the level of what it was in April and May, then the quantum of price increase will not be enough to absorb the complete input costs.”

“And we should admit there has been some level of lost sales opportunity in quarter one as well because of non-availability, and this was largely attributed to some level of disruptions we've had on the supply side in quarter one.”

“the minimum wage increase for garmenting has already been actioned in the month of April, which was applicable for garment industry. That's already flown into the salaries and it is in a way hit our P&L as well.”

“Financially, revenue grew by 7.9% during the quarter, and profit after tax declined by 4%, reflecting the combined impact of input cost pressure and the temporary constraints on converting underlying volume into billings.”

“Sales volume in the quarter was 61.9 million pieces, growing by 5.7% year-on-year.”

“EBITDA for the period was INR2,890 million, which has declined by 1.9% year-on-year.”

“Profit after tax for the quarter was INR1,928 million, declining by around 4% year-on-year.”

“So, the outlook going forward will definitely be much bigger difference between volume and value performance than what we've seen in quarter one, purely attributable to mix as well as the price increase in May which will start kicking in by quarter two.”