PAGEIND - Page Industries Ltd. Share Price

Question 1:
Avi Mehta (Macquarie): How do inventory levels at distributors/retailers compare to normalized levels? What does "bottoming out in December" imply (discounting pressures vs. demand improvement)? How should margins be viewed given Q3's 18.6% EBITDA margin?

Answer:
Inventory improved by ~3 days YTD due to ARS implementation, though still above desired levels. December's "bottoming out" reflects subdued demand, not discounting peaks. Margins (19"“21% target range) faced pressure from weak revenue but were safeguarded via cost controls. Demand recovery is critical for margin normalization.

Question 2:
Nihal Mahesh Jham (Nuvama): Are there changes to ARS implementation or software for EBOs/general trade? What drove lower ASPs (average selling prices)?

Answer:
ARS implementation focuses on data-driven inventory replenishment, improving mix and ROI. A new distributor management system enhances supply-chain efficiency. ASP decline (-4% YoY) stemmed from category mix shifts, notably higher Athleisure discounts and accessible product expansion.

Question 3:
Tejash Shah (Avendus Spark): Is excess post-COVID inventory, especially in Athleisure, being addressed via clearance sales? How long will normalization take?

Answer:
Athleisure inventory remains elevated but is non-seasonal and sellable. ARS prioritizes sustainable correction over discounts. Inventory health (mix/quality) improved, but normalization depends on demand revival. Competitor discounting intensity eased in Q3.

Question 4:
Akshen (Fidelity): How are men's/women's innerwear performing? Explain gross margin trends and pricing outlook.

Answer:
Women's innerwear is prioritized for growth via dedicated teams and distribution. Gross margins (53% YTD) were stable despite high-cost inventory; fresh production at lower costs will gradually improve margins. No near-term price hikes planned unless input costs rise sharply.

Question 5:
Videesha Sheth (Ambit Capital): Why did EBO additions slow? Explain in-house manufacturing increase (70% → 80%).

Answer:
EBO expansion remains on track (150"“200/year). Store consolidation (e.g., women's outlets) reduced counts without impacting coverage. Higher in-house manufacturing (80%) reflects demand-driven outsourcing adjustments and operational efficiency, with ~80% capacity utilization.

Question 6:
Amar Kalkundrikar (Nippon India MF): Did innerwear volumes grow in Q3? What's Athleisure inventory reduction progress?

Answer:
Q3 volumes grew 4.6% overall, with men's innerwear contributing positively. Athleisure inventory days improved but remain above ideal levels; further normalization hinges on demand recovery.

Question 7:
Gaurav (Axis Capital): Why did employee costs decline? How is Jockey addressing Athleisure competition?

Answer:
Employee cost reduction (-9% YoY) resulted from operational efficiency, automation, and outsourcing optimization. Jockey avoids discounting; product value justifies MRP, though competition's inventory liquidation impacted tertiary demand.

Question 8:
Ashish Kanodia (Citi): What drove higher sales incentives? How did Q3 discounting compare to earlier quarters?

Answer:
Sales incentives aligned with seasonal promotions. Discounting intensity eased in Q3 vs. H1FY24, driven by reduced industry-wide inventory pressure.

Question 9:
Devanshu Bansal (Emkay): What are EBO like-for-like trends? Is Eid likely to boost Q4 growth?

Answer:
EBO LFL growth mirrored overall modest trends due to lower footfall and basket sizes. Eid may aid Q4, but demand remains subdued. E-commerce grew 39% in Q3 (28% YTD).