Indian textile majors post good Q1 FY'14 results

The registration for cotton yarn exports has gone up to 55% in the first four months of the current fiscal due to significant increase in Chinese demand. Cotton yarn export is set to break new records this year if current trend continues.

Data compiled by the Directorate General of Foreign Trade (DGFT) showed that traders and exporters registered 488.15 million kgs of yarn for shipments between April–July 2013 as compared to 314.19 million kgs in the corresponding period last year.

If the trend continues, cotton yarn exports would beat all previous expectations to set an all time record this year. The Cotton Yarn Advisory Board has projected a 14.2 per cent increase in cotton yarn production to 4,000 million kg in 2013-14.

In terms of profitability, almost all companies in study have shown improvement in their operating profit over the last year same quarter. 

However, all is not well across the Indian textile industry. Manmade fiber segments are not doing well compared to cotton textiles and reverse trend is witnessed in companies dealing in manmade fibre textiles. Companies into manmade fibre segments like Indo-Rama synthetics, Garden, Century Enka have reported decline in their sales for quarter ended June 2013 in comparison to quarter ended June 2012.

Click here to view quick key Q1 financial parameters comparison chart.

Fibre2fashion.com