Wazir Advisors had recently introduced its Wazir Textile Index (WTI) as a barometer to periodically assess the financial performance of the Indian textiles industry. It has now released its latest WTI which looks at the cumulative financial performance of the top Indian textile companies along with an update on the market performance of the sector for the first half year of FY18 (H1 FY18).
The Wazir Textile Index (WTI) Sales, based on detailed financial analysis of the top ten textile companies, has been calculated to be 108.8 in H1 FY18 as compared to 109.7 in H1 FY17. This indicates that the overall consolidated sales declined by 1 per cent this half financial year.
The earnings before interest, taxes, depreciation and amortization (EBITDA) has also declined significantly in H1FY18. The consolidated WTI EBIDTA stood at 77.1 in H1 FY18 as compared to 106.7 in H1 FY17, falling drastically by 28 per cent. Due to the introduction of the goods and services tax (GST), there was an impact on demand in Q2, which impacted overall sales and profitability in H1 FY18. Moreover, there has been an increase in employee and RM cost which has dented the EBITDA margins.