(Reuters) -Page Industries, which licenses Jockey and Speedo products in India, reported a bigger than expected rise in fourth-quarter profit on Thursday, helped by higher demand for its athleisure products.
The company’s profit increased 51.6% to 1.64 billion rupees ($19.2 million) in the quarter.
Analysts, on average, expected a profit of 1.38 billion rupees, according to data compiled by LSEG.
Increasing preference for casual wear, fitness awareness and shifting lifestyle trends have boosted demand for athleisure wear.
The company said in early February that a rise in the number of its retail chain stores and e-commerce platforms also helped drive demand.
The company’s revenue from operations rose 10.6% year-on-year to 10.98 billion rupees, edging past analysts’ estimate of 10.81 billion rupees.
The retailer said its earnings before interest, tax, depreciation and amortization (EBITDA) margin expanded to 21.4% from 16.6% an year ago, aided by stable raw material prices, smooth supply operations.
“There are significant uncertainties in the near term accentuated by escalated geo‐political conflict in western India,” company said in a statement.
Total expenses grew 4.5% to about 9 billion rupees in the quarter.
Last month, rival Shoppers Stop posted decline in fourth-quarter profit in late April, while Trent’s adjusted Q4 profit doubled on firm sales.
Page Industries’ shares rose 2% after results were reported and fell 10.2% in the quarter ended March 31.
($1 = 85.5590 Indian rupees)
(Reporting by Meenakshi Maidas in Bengaluru)
