Bangalore: Page Industries Ltdlicense for lingerie and eyewear brands international racerproducts of India, which reported a quarterly profit drop of nearly 60% on Thursday, was hit by weak demand as inflation pinched consumers.
The company, known for the production and distribution of sports and athletic apparel, posted a profit of 783.5 million rupees ($9.5 million) for the fourth quarter ended March 31, compared with with 1.91 billion rupees a year earlier.
Higher inventory levels and low capacity utilization during the quarter also hit the company’s bottom line.
However, the company said it considered the impact “temporary” and maintained a positive demand outlook for demand.
The Bengaluru-based company, which also licenses swimwear brand Speedo in India, reported a 12.8% drop in operating revenue.
Input costs rose 4% to Rs 3.08 billion, while staff costs increased by nearly 10% to Rs 2.2 billion, the company said.
Shares of Page Industries are down 4% this year. They closed 0.32% lower on Thursday.