Home / Knowledge / News / Textiles / Ashima's Q2 sales down 2%; outlook weak
Ashima's Q2 sales down 2%; outlook weak
08
Jan '14
The year 2013-14 was difficult for fabric manufacturing industry as it faced problems on several fronts such as continued inflationary pressures, firming of yarn prices and persistent slowdown in global textile industry. The current economic slowdown, which has gripped textile sector, has its inevitable impact on the profitability of the businesses.
 
Ashima, one of India's leading 100% cotton fabric manufacturers, continued to find trading conditions difficult in the second quarter ended September 30, 2013, due to increase in yarn prices, enhanced costs due to wage revision, increase in salary cost and inflationary pressure led to higher costs and expenses.
 
The company reported a net loss of Rs 302.49 lakhs in the second quarter ended September 30, 2013 as compared to a net loss of Rs 370.28 lakhs.  
 
During the six month under review, the company witnessed a 2.2 per cent decline in its net sales which stood at Rs 6096.13 lakhs as compared to Rs 6222.08 lakhs in the same period a year ago. Volumes were affected on account of buying power of customers getting affected due to inflationary pressures. 
 
Yarn prices strengthened due to global factors like higher imports by China and removal of safeguard import duty by Turkey during the year.
 
As the company has been facing financial constraints, it is unable to invest in machinery upgradation required for product development, as well as for keeping machinery and utilities in good operational condition. This has hampered product development and affected efficiency, resulting in sub-optimum performance. 
 
The company has continued to operate only in one segment i.e. textiles. The different products within textile include denim, spinfab, and attires. The performance of Spinfab division remained under pressure in Q2 due to higher yarn prices, which offset the marked improvement in performance of denim division which spurted amid lower cotton prices.
 
The downturn into which the world’s largest economy has been in, is expected to continue for some more time and the heat of this slowdown will hurt the profitability of company. There are not many positive indications except for the marginal easing of inflation of late. A good monsoon, however, may salvage the situation to some extent, but a substantial improvement in the economy or markets in general or textile market in particular is unlikely to happen.
 

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: European Commission/European Union

Textiles | On 26th May 2018

EU set to negotiate FTAs with Australia & New Zealand

The European Union is all set to begin negotiations for free trade...

US bans import of cotton goods from Turkmenistan

Textiles | On 26th May 2018

US bans import of cotton goods from Turkmenistan

The US Customs and Border Protection (CBP) has issued a Withhold...

FPCCI prepares report on Pakistan's export issues

Textiles | On 26th May 2018

FPCCI prepares report on Pakistan's export issues

Federation of Pakistan Chambers of Commerce and Industry (FPCCI)’s...

Interviews View All

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search