Page Industries, the Indian manufacturer and retailer of innerwear, loungewear and licensee of Jockey International, will consider price hike at the end of December quarter to maintain its operating margins.
Speaking to CNBC-TV18, K Chandrasekar, CFO, Page Industries said, “We will definitely look at the price hike at the end of Q3, every year we do that to maintain our margins. Going forward if the raw material prices increase then we will have to look at annual price increase to maintain the EBITDA margins of around 21 percent so we have to wait and watch.”
In the second quarter of fiscal 2021, the company’s gross margins were flat while other operating expenses were down 24 percent.
“We are satisfied with Q2 performance and going forward the outlook is even better. Page Industries have always delivered consistently at least 21 percent EBITDA margins most of the quarters. This is a maintainable margin and by are large we are sort of back to normal and yes these margins are maintainable.”
He further added, “If September and October have shown double digit, then going forward we should expect at least double digit for all the months. If you take Q3 and Q4 definitely that is the way things are panning out.”
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(Edited by : Ankit Gohel)