Manufacturers of and marketing products under the brands Jockey and Speedo in India, the reputed textile company Page Industries’ net profit reduced by 58.9 per cent as it was Rs. 78.4 crore for Q4 FY ’23 against a net profit of Rs. 190.5 crore for the same period of last fiscal.
According to a regulatory filing For Q4 FY ’23, the company’s revenue came in at Rs. 969.1 crore as against Rs. 1,111.1 crore for the year-ago period. It declined by 12.8 per cent.
Higher inventories and inflation are supposed to be the main reasons for such a performance of the company.
For the financial year 2022-2023, the company reported a net profit of Rs. 571.2 crore, a 6.5 per cent increase compared to Rs. 536.5 crore in the previous fiscal year (2021-22). The company’s revenues grew 23 per cent to Rs. 4,788.6 crore during FY ’23 from Rs. 3886.5 crore in FY ’22.
VS Ganesh, MD of the company commented, “We are pleased at the company’s overall growth through the year despite a challenging economic climate and a general decrease in consumption. We consider this impact to be temporary and maintain a positive outlook on demand.” He further added that although the company experienced some impact on profitability due to higher inventory levels acquired during an inflationary period and lower than optimal capacity utilisation, we have taken several steps to address these issues.
These measures include transitioning to a pull-based auto-replenishment system, which allows for better management of inventory levels, and strengthening the supply chain planning to effectively manage the situation.
