Home / Knowledge / News / Textiles / Uncertain environment does not deter Indian textile makers

Uncertain environment does not deter Indian textile makers

14
Aug '12
Despite the uncertain economic environment, a few listed Indian textile companies have shown a steep rise in revenues and also profits in the fiscal quarter ending June 30, 2012, according to the financial research cell of fibre2fashion.com which monitors financial performance of all worldwide listed companies in the textile-apparel-fashion-retail vertical.

Of the results of around 136 companies available as on date, aggregate sales of more than 57 companies have gone up by 10 percent from a year earlier. Again of these 136 companies, 41 companies have posted a net profit growth of more than 10 percent years on year. Companies into yarn, home textile and denim have performed well in this quarter.

Among companies who chalked impressive growth in sales in Q1 were Damodar Threads 66 percent, Welspun India 48 percent, Winsome Yarn 41 percent, Banswara Syntex 28 percent, MSUM India 24 percent, JBF Industries 31 percent, Lambodhara Textiles 26.58 percent, Nakoda Textile 22 percent, Sangam India 22 percent, Indo-Rama Synthetics 21 percent and more.

However, Mr DK Nair – Secretary General of Confederation of Indian Textile Industry (CITI) brushes aside results of the few companies which delivered better results. He says, “We have to take the bigger picture in to account. Most of the companies in the Indian textile industry are bleeding. Although we welcome the results of the few who have bucked the overall trend”.

He adds, “Most of the companies which have delivered better results are vertically integrated companies, like Welspun, Arvind, to name a few. However spinners like Vardhman which have never declared losses since inception have posted losses in the quarter. The hardest hit are standalone units like spinning, weaving or apparel producers”.

A few of these companies have reported handsome growth in revenues as well as net profits in the reporting period. Welspun India for instance has clocked revenue growth of 48.06 percent, while net profits have also hiked 45.84 percent, both from a year ago. Mumbai based Sarla Performance Fibres too has posted sales and net profit growth of 34.02 and 23.45 percent respectively.

Speaking about their performance, Mr. Rajesh Mandawewala, MD of Welspun India revealed, “Consolidation of our operations and optimization of resources has enabled us to deliver superior performance despite a troubled global economy. The large scale of our operations and constant innovations in products has helped us steer through difficult periods”.

Mr Mahen Sheth – CFO at Sarla says, “Revenues have increased 34 percent mainly due to an increase in the volume of sales coupled with the USD appreciation. Secondly, we deal in high tenacity specialized yarns, which are a niche segment and which in turn reduces the risk to a certain extent of local or global factors. We are also confident of maintaining the same pace in coming quarters”.

Mumbai-based yarn producer - Damodar Threads posted a year on year sales growth of 66.40 percent and a rise in net profits of a stupendous 1316 percent in the quarter. Aditya Biyani from the promoter family said, “The main reason for surge in revenues has been optimization of production and marketing. Our continuous efforts in the export market have helped us develop new markets and sales. 


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 2nd Aug 2021

Vietnam surpasses Bangladesh as 2nd biggest garment exporter: WTO

Bangladesh recently lost its rank as the second largest apparel...

Pic: Shutterstock

Textiles | On 2nd Aug 2021

Euro zone economy expands by 2% in Q2 2021: Eurostat

The 19-member euro zone financial system expanded by 2 per cent in...

Pic: Shutterstock

Textiles | On 2nd Aug 2021

US real GDP increases at annual rate of 6.5% in Q2 2021: BEA

US real gross domestic product (GDP) increased at an annual rate of...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry with brand ethos

Textile Industry, Head honchos

Textile Industry
Head honchos

Donating 20,000 N95 masks to hospitals & NGOs

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchain is not a silver bullet for each and every problem in supply...

Zayed Moyeen,

Zayed Moyeen

Far East Knitting and Dyeing Industries LTD (FEKDIL) was established in...

Chini Chouhan,

Chini Chouhan

Founded by Chini Chouhan, her eponymous brand specialises in women's...

Dhruv Toshniwal & Udit Toshniwal,

Dhruv Toshniwal & Udit Toshniwal

Launched a year ago, Fashions Pvt Limited conceptualises and sees D2C...

Sanjay Raut, Garware Technical Fibres Ltd

Sanjay Raut
Garware Technical Fibres Ltd

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees and...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

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


July 2021

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


Advanced Search