- 25 May 2023
- ICICIdirect Research
Page Industries Q4 Results 2023: Dismal operational performance; reports one of the weakest margins
Page Industries Ltd | CMP: 40505 | Market Cap: 45,179.39
Dismal operational performance; reports one of the weakest margins
Q4FY23 Earnings Summary
View: The revenue trajectory has been challenging in H2FY23 mainly due to weak demand in the market and the implementation of Automatic Replenishment System (ARS) across the organisation which impacted the primary sales. The impact of ARS implementation is likely to prevail in the upcoming quarters and sales is expected to remain subdued in H1FY24E. The margins since the past two quarters have been lower than the normal range of 21-22% owing to lower absorption of fixed cost and increased advertisement spend during the quarter. Furthermore, on the balance sheet front, inventory days inched up from 92 days to 120 days owing to higher stocking on anticipation of better demand. The liquidation of the same would take some time owing to subdued market.
Impact: Negative