Shares of India’s leading women’s clothing retailer TCNS Clothing Company fell about 7% and hit a 52-week low after a disappointing third-quarter earnings report.

At 11:26 am, TCNS Clothing was trading at Rs 446.05 on the National Stock Exchange, down 4.59% from the previous close.

The company posted a net profit of just Rs 50 lakh, down 98% year-on-year. The decline was due to higher depreciation, lower other income and lower interest expense, combined with poor operating performance, which weighed on margins.

Also, the company’s revenue fell 6.8% year-on-year to Rs 306.1 crore due to specific fabric issues under the W brand, sluggish B2B online sales and challenges at Future Group-operated central stores.

EBITDA margins also contracted by 620 basis points to 13% in the October-December period. EBITDA margins remain significantly lower than pre-COVID levels due to negative operating leverage.

The company’s stock has been hammered, dropping nearly 50% from its April 2022 high. The plunge shows how Indian retailers face headwinds from the COVID-19 pandemic and the resulting economic slowdown.