(Reuters) -Page Industries, which licenses Jockey and Speedo brands in India, reported a marginal decline in quarterly profit on Thursday as consumers reined in spending, in part due to slow income growth.
The apparel maker reported a profit of 1.948 billion rupees ($22.16 million) for the quarter ended September 30, down from 1.953 billion rupees a year ago, according to a regulatory filing.
Sales volumes grew 2.5%, slower than the 6.7% increase in the comparable quarter last year.
Demand for discretionary goods, including for peers such as Metro Brands’ footwear and Trent’s clothing has been muted, even as retailers anticipate better quarters ahead in part due to easing inflation.
Page’s expenses rose 5%, outpacing its 4% growth in revenue, which stood at 12.91 billion rupees.
“Revenue growth was moderate this quarter,” said V.S. Ganesh, managing director at Page Industries.
Similar to its industry peers, Page is betting on tax cuts implemented close to the end of the quarter and the rapid growth of quick-delivery platforms to lift consumption going forward. The company, however, did not quantify the projected boost.
Page Industries’ stock was down nearly 2% after results, taking its decline to about 16% this year.
($1 = 87.8950 Indian rupees)
(Reporting by Komal Salecha in Bengaluru and Praveen Paramasivam in Chennai; Editing by Ronojoy Mazumdar)
