52-WEEK BLOCKBUSTER: PAGE INDUSTRIES:: Business Line

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In a budding branded innerwear market, Page Industries has a firm grounding with its Jockey range for men and women. This, together with the non-discretionary nature of products and a diversification into new segments, has put Page Industries on a high-growth path. The company's stock has been on a steady uptick in response to the consistently strong revenue and earnings growth.

Page Industries extended its brand strength into categories such as sportswear and leisure wear. Helping propel sales was its vast retail reach. It has 70 exclusive brand outlets and over 20,000 other lingerie shops which sell its products.

Cotton (the primary raw material) prices surging rapidly in late 2010 through early 2011, and excise duty on branded apparel, added to the cost. But the consequent price hikes Page Industries undertook didn't appear to dent demand in the longer term with consumers adjusting to the higher prices.

Revenues grew 45 per cent in the first half of this fiscal while net profits expanded 76 per cent. Operating margins shot up to 24 per cent for this period from the 21 per cent in the comparable year-ago period.

Net margins improved to 15 per cent from the 12 per cent in the year-ago period. There is also strong potential to ramp up revenues from Page Industries' becoming the exclusive licensee of international swimwear brand Speedo.