Textured Jersey said last year's profits were helped by lower cotton prices despite a dip in demand from Europe.
In the March quarter revenues rose 0.5 percent to 3.1 billion rupees from a year earlier and cost of sales rose 6.7 percent to 2.75 billion rupees but gross profits fell 30 percent to 355 million rupees.
Cotton prices were up in the first quarter but orders were also strong and the company was expecting to pass on the costs in the second quarter.
"Looking towards the future, TJL continues to carry a strong order book with new product lines and continued interest from TJL’s top clients, which include Victoria’s Secret, Marks & Spencer, Intimissimi and Decathlon," chairman Bill Lam told shareholders.
"Management is therefore confident of maintaining sales volumes in the next quarter, and as TJL begins to pass through cotton price increases, management expects to regain margins in the coming quarters."
The company was also cash rich with no long-term borrowings and 371 million rupees in short term borrowings. Textured Jersey reported finance income of 112 million rupees for the quarter compared to forex losses seen last year.
Correction: profits up 47 percent in March quarter from year earlier