MOSL: PAGE INDS. (Neutral)-Big miss-lack of clarity on recovery leads to sharp cut in earnings
Page Inds.: Big miss; lack of clarity on recovery leads to sharp cut in earnings
(PAG IN, Mkt Cap USD3.5b, CMP INR21970, TP INR19740, 10% Downside, Neutral)
- 4QFY19 flat sales growth of1b (our est. INR7b), was led by meager overall volume growth of 1% YoY. EBITDA declined 18.5% to INR1.2b (our est. INR1.5b), while Adj. PAT was down 20.4% to INR750m (our est. INR1b).
- Gross margin expanded 100bp YoY to 63.6%. Yarn costs were stable. EBITDA margin was down sharply 440bp YoY to 19.7%. Employee costs as % of sales were up 430bp YoY while other expenses as % of sales were up 110bp.
- FY19 performance: Sales/EBITDA/Adj. PAT grew 12%/14%/13%. Overall volumes grew 5.6% for the year. Gross margins were up 60bp YoY to 58% while EBITDA margin expanded 40bp YoY to 21.6%.
Page Industries is a garment manufacturing group based in India. Co. is the exclusive licensee of JOCKEY International for manufacture and distribution of the JOCKEY® brand Innerwear/Leisurewear for Men and Women in India, Sri Lanka, Bangladesh, Nepal and United Arab Emirates. Co. is also the exclusive licensee of Speedo International for the manufacture, marketing and distribution of the Speedo brand in India (products include swimwear, water shorts, apparel, equipment and footwear). Co. maintains manufacturing operations spread over 9 complexes in Bangalore and Hassan in addition to 25,000 plus retail outlets in 1,200 cities and towns across India.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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