BENGALURU, May 23 Reuters Page Industries, which licenses Jockey International39;s products in India, reported smallerthanexpected profit and revenue on Thursday, hurt by high inventory costs and subdued demand.

The company, which manufactures and distributes innerwear, sportswear and athleisure for the brand, reported a profit of 1.08 billion rupees 13 million for the quarter ended March 31, falling short of analysts39; estimates of 1.32 billion rupees, as per LSEG data.

Soaring inventory costs hit Page Industries39; bottomline even as postCOVID 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 raw material costs fell 12.6.

Persistent inflation has prompted consumers to switch to cheaper alternatives, denting the company39;s topline as well.

The Bengalurubased company, which also licenses the Speedo swimwear brand in India, reported a 3.2 rise in its revenue from operations to 9.95 billion rupees, but missed analysts39; 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,…