Home / Knowledge / News / Textiles / High raw material costs hit polyester yarn makers in Q2
High raw material costs hit polyester yarn makers in Q2
17
Dec '13
Indian polyester yarn makers witnessed a sharp drop in their bottom-line during second quarter ended September 2013, hit by rise in prices of raw materials such as Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG), which the companies failed to pass on to the buyers.

JBF Industries Ltd, leader in polyester value chain products, reported a loss of Rs 3.9 crore during Q2 FY14 as against a net profit of Rs 49.4 crore in the corresponding quarter of previous fiscal. The fall in net profit of the company was in line with steep increase in the prices of PTA and MEG which led to surge in the prices of texturized polyester yarn, the benchmark yarn variety. 

PTA prices averaged at Rs 72.67 per Kg in Q2 FY14 versus Rs 60.27 per Kg in Q2 FY13. The price touched 52-week high of Rs 77.50 per Kg during the month of September 2013. Similarly, MEG prices averaged Rs 70.07 per Kg in Q2 FY14 versus Rs 57.77 per Kg in Q2 FY13. It touched its 52-week high of Rs 78.30 per Kg in the month of September.

With these raw materials getting costlier, the industry-wide average price of Chips stood at Rs 94 per Kg in Q2 FY’14 versus Rs 80 per Kg in FY13. The Partially Oriented Yarn (POY) & Specialty Yarn prices also increased to Rs 106 per Kg from Rs 93 per Kg during year ago period across the industry. Polyester POY is the first form of yarn made directly from PTA & MEG or by spinning Polyester PET Chips.

Welspun Syntex Ltd, one of the leading exporters of Polyster Texturised Filament Yarn from India, also reported a huge drop in net profit at Rs 0.11 crore in Q2 FY14 as compared to Rs 9.2 crore in Q2 FY13. Net sales of the company increased 17.6 per cent at Rs 241.9 crore versus Rs 205.75 crore in Q2 FY13.

Filatex India Ltd said its net profit dropped to Rs 0.15 crore in Q2 FY14 from Rs 5.06 crore in Q2 FY13. This is despite the increase in company’s total income by 44 per cent at Rs 446.45 crore from Rs 310.20 crore in the corresponding quarter of previous fiscal.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 23rd Aug 2017

US govt initiates Section 301 investigation of China

The US government has initiated an investigation of China under...

Apparel/Garments | On 23rd Aug 2017

BRC welcomes clarity on goods flow during Brexit

British Retail Consortium (BRC) has welcomed the greater clarity that ...

Textiles | On 23rd Aug 2017

Pakistan minister seeks ideas to boost textile sector

The Pakistani Government will come out with short- and long-term...

Interviews View All

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

August 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
67.7%
No
16.1%
Skip
16.1%

Total Votes: 31

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
45.2%
No
35.5%
Skip
19.4%

Total Votes: 31

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.9%
No
6.5%
Skip
9.7%

Total Votes: 31

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
61.3%
No
9.7%
Skip
29.0%

Total Votes: 31


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search