Jockey India licensee's quarterly profit falls on higher expenses

According to Business Recorder, Page Industries, the Indian licensee of Jockey International, posted a smaller profit for the first quarter, with expenses climbing as raw material prices increased. The company earned 1.93 billion Indian rupees ($20.22 million) in the three months to June 30, down from 2.01 billion rupees a year earlier. Its shares fell 4.7 per cent after the announcement.

Sales volumes rose 5.7 per cent, a faster pace than the 1.9 per cent gain recorded a year earlier, and revenue from operations went up 7.9 per cent to 14.2 billion rupees. Costs, however, grew 10.5 per cent, outstripping sales growth, and the operating margin narrowed to 20.3 per cent from 22.4 per cent. Higher input costs, mainly for cotton and man-made fibres, squeezed margins.

The company said short-lived logistics disruptions stopped volume growth from fully showing up in reported revenue, and conditions were beginning to stabilise, with the effect expected to be temporary. PhillipCapital noted that retail spending firmed in April and May, softened in June, and that price increases offset some raw material inflation, though footwear and clothing sellers were seen trailing other retail segments.