Jockey India licensee's quarterly profit falls on higher expenses
Page Industries, the Indian licensee of apparel maker Jockey International, reported a first-quarter profit fall on Thursday, as expenses rose due to higher raw materials prices. The company posted a profit of 1.93 billion rupees ($20.22 million) for the three months ended June 30, compared with 2.01 billion rupees a year earlier. Page said sales volumes grew 5.7%, faster than the 1.9% increase…
Indian licensee of Jockey International, Page Industries, reported a decline in first-quarter profit on Thursday due to increased expenses caused by higher raw material prices. The company generated a profit of 1.93 billion rupees ($20.22 million) for the quarter ending June 30, a decrease from 2.01 billion rupees in the same period last year.
Despite a 5.7% increase in sales volumes, outpacing the 1.9% growth in the previous quarter, revenue from operations grew by 7.9% to 14.2 billion rupees. However, margins suffered due to higher input costs, particularly for cotton and synthetic fibers, with operating profit margins slipping to 20.3% from 22.4% a year earlier. Operating expenses rose by 10.5%, outpacing revenue growth.
Short-term logistics disruptions hindered the company's ability to meet demand, limiting the full impact of volume growth on reported revenue. The slowdown was temporary, and conditions were expected to stabilize soon. Retail consumption improved briefly in April and May before declining in June, while price hikes helped offset rising raw material costs, although apparel and footwear retailers were anticipated to lag behind other retail segments. Page Industries' stock declined by 4.7% following the results.
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