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

Japan’s JICA promoting energy-saving devices in Bangladesh

Apparel/Garments | On 21st Feb 2018

Japan’s JICA promoting energy-saving devices in Bangladesh

The Japan International Cooperation Agency (JICA) is promoting use of ...

China’s JD.com announces financing pacts for JD Logistics

Textiles | On 21st Feb 2018

China’s JD.com announces financing pacts for JD Logistics

China’s largest retailer JD.com Inc recently announced it has entered ...

Courtesy: Indorama Ventures

Textiles | On 21st Feb 2018

IVL 2017 revenue up 17% y-o-y to $8,438 million

Indorama Ventures Public Company Limited (IVL) has reported revenue...

Interviews View All

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Anupam Arya

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

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Larry L Kinn
Suominen Corporation

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

Kai Poehler
Voith Paper GmbH & Co. KG

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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

February 2018

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
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

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
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

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
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

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
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


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