![Page Industries Q4 Results: Firm misses earnings estimates on high inventory costs, muted demand](https://img.etimg.com/thumb/msid-110364101,width-210,height-158,imgsize-36194,resizemode-75/page-industries-q4-results-firm-misses-earnings-estimates-on-high-inventory-costs-muted-demand.jpg)
The company, which manufactures and distributes innerwear, sportswear and athleisure for the brand, reported a profit of 1.08 billion rupees ($13 million) for the quarter ended March 31, falling short of analysts' estimates of 1.32 billion rupees, as per LSEG data.
Soaring inventory costs hit Page Industries' bottom-line even as post-COVID demand for its innerwear and athleisure collections stayed steady.
The company reported an inventory cost of 364.6 million rupees, compared to a negative 1.83 billion rupees in inventory value a year ago.
Its total expenses fell just 0.5%, while raw material costs fell 12.6%.
Persistent inflation has prompted consumers to switch to cheaper alternatives, denting the company's top-line as well.
The Bengaluru-based company, which also licenses the Speedo swimwear brand in India, reported a 3.2% rise in its revenue from operations to 9.95 billion rupees, but missed analysts' average estimates of 10.98 billion rupees, as per LSEG data.
"Despite a temporary boost during the festive season last quarter, the retail sector continued to face subdued demand in the fourth quarter," the company said in a statement.
It is also facing an increase in competitive intensity from both organised and unorganized sectors, it added.
However, the company said it expects a "significant" growth in the athleisure market over the next decade.
Peer Arvind Fashions reported a more than two-fold rise in profit on steady demand for its more diverse premium clothing portfolio that includes casual and formal wear.
Page Industries' stock has fallen 10.6% in the March quarter and is down 7.6% so far this year. It closed 2.1% lower after the results on Thursday
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
Read More News on
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price