Page Industries Q4 Results: Firm misses earnings estimates on high inventory costs, muted demand

Soaring 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 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 swimwear brand in India, reported a 3.2% rise in its 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 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