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: BekaertDeslee

Textiles | On 23rd Oct 2017

BekaertDeslee to expand North American facility

BekaertDeslee, one of the largest manufacturer of mattress textiles...

Courtesy: A&E

Textiles | On 23rd Oct 2017

A&E unveils Magic using Repreve sewing thread

American & Efird (A&E), a leading developer of industrial and...

Courtesy: Messe Frankfurt

Textiles | On 23rd Oct 2017

Over 4,000 exhibitors attend Intertextile Shanghai 2017

Another successful Intertextile Shanghai Apparel Fabrics has wrapped...

Interviews View All

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Sanjukta Dutta
Sanjukta's Studio

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

October 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
76.1%
No
12.7%
Skip
11.3%

Total Votes: 71

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
62.0%
No
28.2%
Skip
9.9%

Total Votes: 71

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
85.9%
No
9.9%
Skip
4.2%

Total Votes: 71

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
76.1%
No
11.3%
Skip
12.7%

Total Votes: 71


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