Jockey’s India business sees stronger volume growth, but higher raw material costs and logistics disruptions weigh profit
Page Industries, which operates Jockey’s business in India, reported a 4 per cent decline in first-quarter profit, as higher cotton and synthetic fibre costs and a rise in overall expenses weighed on margins.
The company’s profit for the three months ended 30 June stood at Rs 193 crore, compared with Rs 201 crore in the year-ago period. Sales volumes, however, grew 5.7 per cent during the quarter, compared with 1.9 per cent growth in the corresponding period last year.
Revenue And Margins
Revenue from operations increased 7.9 per cent year-on-year to Rs 1,420 crore. However, expenses rose 10.5 per cent, outpacing revenue growth and putting pressure on profitability.
Operating profit margin declined to 20.3 per cent from 22.4 per cent a year earlier, with higher input costs, particularly for cotton and synthetic fibres, affecting margins.
Logistics Impact
Short-term logistics disruptions also affected the company’s ability to meet demand, limiting the extent to which stronger underlying volumes translated into reported revenue growth. Page Industries said operating conditions have started to stabilise and expects the impact of the disruptions to be temporary.
According to PhillipCapital, retail consumption improved in April and May before moderating in June. Price increases helped cushion the impact of higher raw material costs, although apparel and footwear retailers were expected to lag other retail segments.
Shares of Page Industries fell 4.7 per cent following the results.
