Shares of Page Industries Ltd. fell as much as 12.5% on Thursday, November 12, in response to its September quarter results. The numbers was subdued on a year-on-year basis across parameters.
Page Industries reported revenue growth of 11.5% during the September quarter to ₹1,439.6, compared to ₹1,291 crore it reported during the same quarter last year.
Net profit during the period stood at ₹202.5 crore, a growth of 3.8% compared to the year-ago period figure of ₹195 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) during the quarter stood at ₹300.2 crore, compared to ₹279.6 crore, a growth of 7.4% from last year.
EBITDA margin narrowed by 80 basis points from the year-ago quarter to 20.8% from 21.6% earlier.
Here’s what the management said in its footnotes as part of its P&L statement:
The Company has carried out retail trading of Jockey and Speedo branded products, including imported products, throughe-commerce without establishing physical retail stores. Such retail trading of imported products of multiple brands was notin accordance with the retail trading provisions of the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019,issued under the Foreign Exchange Management Act, 1999 (FEMA). Based on legal advice and Management’s assessment, the Company applied to the RBI for compounding on May 20, 2026. On October 16, 2026, the RBI returned the application and advised the Company to first obtain post-facto approval from the Government of India. Management is in the process of obtaining the approval and plans to reapply for compounding thereafter. The Management expects the non-compliance to be compounded by the RBI and the financial impact, if any is not likely to be material. Accordingly, no adjustment has been made to the financial results.
PAGE INDUSTRIES’ FOOTNOTES
Speaking to CNBC-TV18 on this issue, Senior Supreme Court Advocate HP Ranina said that it is wrong on Page Industries’ part to say that the impact will not be material, as the impact of a FEMA violation could be material, basis the independent auditor’s assessment.
Ranina stressed on the importance of an independent assessment, adding that in case if its a pure FEMA violation and not money laundering, the RBI will accept compounding.
Volume Growth Lags Guidance
Sales volumes during the quarter stood at 59.7 million pieces, growing at 5.5% from last year. For the first half of the year, the sales volume stood at 5.6% year-on-year. The management, in the June quarter, had maintained its aspiration to grow volumes by double digits during the full financial year.
“While raw material costs remained elevated, our profitability has remained within our planned range. With positive demand trends, strong brand momentum, an exciting pipeline of new product ranges and ongoing initiatives to improve operational efficiency, we look ahead with confidence,” VS Ganesh, Managing Director of Page Industries was quoted as saying.
With the festive season underway, the management expects a “healthy lift” in consumer demand over the coming months, and the company, using its expanded manufacturing capacity, streamlined processes and technology-led productivity gains will help them serve demand at lower costs, the filing stated further.
Shares of Page Industries are trading 12.7% lower after the results announcement at ₹31,920. With this fall, the stock has turned negative for the year, and is down 7% on a year-to-date basis.
Page Industries Q2 Results: Stock tanks 13% after volume growth lags guidance, FEMA violation concerns
