1000% Dividend, 0.7% Yield: This FMCG Stock Reports Q3 Profit Up 23%, Surge In Margin; Do You Own?

Page Industries Ltd, the franchise owner of the renowned Jockey brand of innerwear and clothing, has declared its third interim dividend for the fiscal year 2023-24, setting the amount at Rs 100 per equity share. The company's Board of Directors, in a meeting held on February 8, 2024, made the announcement and specified February 16 as the record date for dividend payments. Investors can expect the dividend to be credited on or before March 8, 2024, according to an official filing by the company.

In an exchange filing, Page Industries stated, "We further inform you that the Board of Directors of the Company at their meeting held today (i.e., 8 February 2024) has declared 3rd Interim Dividend 2023-24 of ₹100/-per equity share. As informed earlier, the record date fixed for the payment of the interim dividend is 16 February 2024. The date fixed for payment of dividend is on or before 8 March 2024."

This move follows the company's impressive dividend track record, having consistently declared dividends over the past five years. In the last fiscal year, ending March 2023, Page Industries declared an equity dividend of 2500.00%, equivalent to Rs 250 per share. With the current share price at Rs 35,965 per share, this results in a dividend yield of 0.7%.

Alongside this dividend announcement, Page Industries unveiled its financial results for the third quarter of fiscal year 2023-24. The company reported a net profit of Rs 152 crore, marking a substantial 23% increase from the Rs 124 crore declared in the corresponding quarter of the previous year. Page Industries' revenue witnessed a modest uptick, reaching Rs 1,299 crore in the quarter under review, reflecting a 2.4% growth from the Rs 1,200 crore recorded in Q3FY23.

The EBITDA (earnings before interest, tax, depreciation, and amortization) for the quarter was reported at Rs 230 crore, representing a 19% growth. The EBITDA margin stood at 18.7%, a notable improvement compared to 16.1% YoY.

V.S. Ganesh, Managing Director of Page Industries, expressed his satisfaction with the results, stating, "I am pleased to share that the Company has successfully navigated the complexities of mixed demand trends in the retail sector, a landscape marked by a significant shift in consumer spending patterns. Our strategic commitment to sustainable sales practices and meticulous inventory management has been instrumental in robust margins and enhanced profitability. We have seen early signs of stabilizing revenue in Q3 on the back of our adaptive strategies in response to the market's evolving demands."

The shares of Page Industries ended Thursday's trading session with gains of nearly 2% at Rs 36,905.20 per share on the National Stock Exchange (NSE). The stock has fallen 8% in the last one year.

The positive financial results and the declaration of the interim dividend reinforce Page Industries' position as a strong player in the retail sector. Investors are likely to view these developments as positive signals, underlining Page Industries' resilience and strategic acumen in navigating a challenging business environment.