Margins surprise for Page Industries in March quarter

Current rich valuations could cap significant gains from here

Surprise in Page Industries’ March quarter performance was the rise in margins. The company’s profit before interest, tax, depreciation and amortisation (Ebitda) margin inched up 23 basis points (bps) to 21.2 per cent over a year ago, with a favourable revenue mix and smaller rise in overall costs; analysts were anticipating a sharp fall, due to higher input costs.

Overall performance was healthy, with net sales growing 13 per cent to Rs 499 crore, a tad short of the Bloomberg consensus estimate of Rs 508 crore. Volume growth, estimated at nine per cent, was broadly in line with analysts’ expectations.