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MUMBAI: & Company Limited, a knitwear firm posted a net profit of Rs 66 crore during the quarter ended March compared with a loss of Rs 4.3 crore in the corresponding quarter of the previous year, helped by higher sales that more than doubled from a year ago. The innerwear company saw sales increase 153 per cent to Rs 454 crore in the fourth quarter.
The company said despite the challenges faced due to the pandemic, it recorded its highest ever revenues and profits in FY2021. "This was possible due to increased sales volumes, changes in product mix, improved operating efficiencies and cost reduction strategies," said Dinesh Kumar Lodha, chief executive officer at Rupa & Co.
During FY21, revenues increased 35 per cent to Rs 1312 crore while net profit rose 183 per cent at Rs 175 crore.
The Kolkata based firm said it is witnessing a second wave of Covid-19 infections, which has resulted in disruption to business after restrictions. "We expect business to start gaining traction in June 2021 and expect higher than industry growth for the coming year," added Lodha.
The innerwear category, estimated at Rs 30,000 crore, accounts for 10 per cent of the total apparel market and is expected to grow at a compounded annual growth rate of 10 per cent over the next decade to Rs74,258 crore. Experts, however, feel innerwear is evolving from being functional to a segment with a fashion quotient. While it has been shifting from a price-sensitive category to a brand-sensitive one, the pandemic year has favoured mass priced products.
"On a full year basis, sales of have declined by 3.8 per cent and are behind smaller players such as Lux, Rupa and Dollar. These players have been beneficiaries of the consumer shift from unbranded to branded, while Page is likely to benefit from the next leg of premiumisation in this consumer cohort," said a recent report by IIFL Securities.
The company said despite the challenges faced due to the pandemic, it recorded its highest ever revenues and profits in FY2021. "This was possible due to increased sales volumes, changes in product mix, improved operating efficiencies and cost reduction strategies," said Dinesh Kumar Lodha, chief executive officer at Rupa & Co.
During FY21, revenues increased 35 per cent to Rs 1312 crore while net profit rose 183 per cent at Rs 175 crore.
The Kolkata based firm said it is witnessing a second wave of Covid-19 infections, which has resulted in disruption to business after restrictions. "We expect business to start gaining traction in June 2021 and expect higher than industry growth for the coming year," added Lodha.
The innerwear category, estimated at Rs 30,000 crore, accounts for 10 per cent of the total apparel market and is expected to grow at a compounded annual growth rate of 10 per cent over the next decade to Rs74,258 crore. Experts, however, feel innerwear is evolving from being functional to a segment with a fashion quotient. While it has been shifting from a price-sensitive category to a brand-sensitive one, the pandemic year has favoured mass priced products.
"On a full year basis, sales of have declined by 3.8 per cent and are behind smaller players such as Lux, Rupa and Dollar. These players have been beneficiaries of the consumer shift from unbranded to branded, while Page is likely to benefit from the next leg of premiumisation in this consumer cohort," said a recent report by IIFL Securities.
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