BENGALURU (Reuters) – Page Industries, which licenses products of innerwear and loungewear brand Jockey International in India, reported a 7.3% fall in second-quarter profit on Thursday as inflation-hit consumers continued to cut back on spending.
The Bengaluru-based company, which also operates in countries such as Sri Lanka and the United Arab Emirates, said its profit fell to 1.5 billion rupees ($18.02 million) for the quarter ended Sept. 30, from 1.62 billion rupees a year earlier.
India’s malls and high streets saw lower footfall during the quarter as rising inflation forced people to tighten their belts. Foreign brands offering steep discounts to encourage consumer spending also ate into Page’s earnings.
As a result, the company, which also licenses the Speedo swimwear brand in India, posted an 8.4% fall in its revenue from operations to 11.25 billion rupees.
The apparel company, however, said it expects the ongoing festive season to bring a turnaround in sales.
Its EBITDA (earnings before interest, tax, depreciation and amortization) margin contracted to 20.8%, falling 1.8% from a year earlier.
In contrast, rival Tata-owned Trent reported a three-fold surge in quarterly profit earlier this week.
Shares of Page Industries fell 1% after the results, driving its year-to-date losses to 12.6%.
($1 = 83.2500 Indian rupees)
(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Sonia Cheema)