Page Industries Ltd shares dropped over 5.5% in intraday trade to their lowest levels in 52 weeks after the company reported poor set of earnings for the first quarter ended June (Q1).
Shares of Page Industries, which is the seller of Jockey International and Speedo brands in India, were trading at Rs 17,651, down 4.5%, on BSE at 11:20 am, after hitting an intra-day low of Rs 17,449 earlier.
Page Industries, in a notification released after market hours on Thursday, said net profit for the June quarter 11% to Rs 110.6 crore against Rs 124.4 crore a year ago. The company’s revenue grew by a tepid 2.4% to Rs 835 crore against Rs 815.3 crore in the same quarter last year.
At the operating level, the company’s earnings before interest, tax, depreciation and amortization (Ebitda) fell to Rs 186.6 crore, while margins contracted to 22.3%.
The board of directors at Page Industries also declared a dividend of Rs 51 per equity share for 2019-20. The record date for the dividend has been fixed at 20 August 2019.
After the earnings, research house Ambit cut its target price on the Page Industries stock from Rs 18,000 per share to Rs 17,000. It also cut its FY20/FY21 earnings per share (EPS) estimates by 10% to factor growth deceleration.
Credit Suisse also maintained its ‘underperform’ rating on the stock, while cutting its target price to Rs 15,500 per share. It said Q1 results are weak, with volumes down 2% and profit after tax (PAT) declining 11%. The brokerage cut Page Industries’ FY20-21 earnings guidance by 9-11%.
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