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Indian Terrain Fashions Ltd has posted a 46 per cent dip in net profit at Rs 0.7 crore (Rs 1.3 crore) for the first quarter of 2011-12 financial year on an increase in excise duty and interest rates.
Net sales rose 15 per cent year on year to Rs 26.68 crore for the quarter ended June 30, 2011.
“The first quarter normally is a lean season for retailers. This quarter has also seen interest costs jumping from Rs 1.18 crore to Rs 1.87 crore. Increase in RBI base rates, and banks increasing interest rates subsequently and working capital going up have resulted in profits going down,” said Mr S. Surya Narayanan, CFO.
Indian Terrain Fashions was recently hived off its parent company Celebrity Fashions to give the brand independence . “The move has helped increase market capital significantly. We have planned new product introductions and store expansion in the coming quarters. We have already increased retail prices by 15 per cent. All this will help us get better revenues in Q2 and Q3,” said Mr Narayanan
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