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Earnings

Page Industries says it's prepared for double-digit volume growth

Updated : November 15, 2019 08:00 PM IST

Page Industries Ltd, the maker of Jockey garments, on Friday said it is prepared for double-digit volume growth after the company reported a mixed set of Q2 earnings

In an interview to CNBC-TV18, K Chandrasekar, chief financial officer, said, "We have grown 12 percent in Q2 and volumes have grown by 9 percent. It is certainly a reversal of trend compared with Q1. It is a bit too early to take a call on a longterm basis including H2."

"The Indian market is quite huge and the penetration in the premium market is pretty low. So, there is a room for the premium space to be grown by even some of our competition and some of them are doing well. They have done well in the past also. We only look at the penetration in the premium market where we have close to 18 percent for men, about 5-6 percent for women segment and about 8-10 percent for the athletes and sports,” he added.

In terms of margins, Chandrasekar said, “20-22 percent EBITDA margin we always achieve historically. We also plan an annual price increase so that we achieve that and it is pretty much intact."

On price hikes, he further mentioned, “We typically do 3-5 percent increase once a year and the price increase is inflation plus. So, we don’t increase the price unless there is a cost increase. We take price increase over a period of many months. We don’t do price increase overnight."

“We have close to 2,500 distributors dealing with all the categories and most of them have stayed with us for more than 10-20 years. So we have grown because of the support of not only the distributor community but the entire channel,” he said.
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