The overall sales of top ten Indian textiles companies increased marginally in FY 2018, and earnings before interest, tax, depreciation and amortization (EBITDA) margins declined significantly. These findings are from the Wazir Textile Index (WTI) comprising cumulative financial performance of the top ten Indian textile companies along with update on market performance of the sector for FY18.
However, EBITDA declined drastically by 16 per cent in the same period. Consolidated WTI EBITDA stood at 84.2 in FY18 as compared to 100.5 in FY17. Following GST, even though overall sales grew in volume, demand constraints resulted in lower price realisation leading to reduced EBITDA margins. Also, there was an increase in raw material and employee costs impacting margins.
However, the performance rebounded in Q4 and Q3 after a dip in Q2. Immediately after GST there was a dip in consolidated sales. However, in Q4 and Q3, the sales and EBITDA levels improved for the textiles industry. On a consolidated level, sales increased by 4 per cent in Q4 and Q3 FY18, and 3 per cent in Q3 vs Q2 FY18, after a dip of 0.5 per cent in Q2 vs Q1 FY18. Compared to previous year, sales increased by 0.3 per cent in Q4 FY18 vs Q4 FY17, and 7 per cent in Q3 FY18 vs Q3 FY17, after a decrease of 2 per cent in Q2 FY18 vs Q2 FY17.
Consolidated EBITDA margins declined consistently in Q1 FY18, Q2 FY18, Q3 FY18 and Q4 FY18 compared to previous year. The decline was less in Q3 FY18 at around –3 percentage points while the decline in Q4 FY18 was the least at around –1 percentage point. Within FY18, average EBITDA margins declined in Q2 to 12.4 per cent and then further rebounded in Q3 and Q4 to reach 13.7 per cent in Q4.
Click here to read the full report
Fibre2Fashion News Desk – India
| On 18th May 2021
China's textile industry showed strong performance in the first...
| On 18th May 2021
Over 280,000 employees in Ireland’s retail sector returned to work as ...
The price of organic cotton fibre in India is expected to increase in ...
International apparel brands
Launched first collection at onset of Covid
The pandemic has reinstated need for organised retail spaces in Tier II...
Verticals like fast fashion won’t completely adopt personalisation on...
Headquartered in Apt, South of France, Delta Plus designs, manufactures...
The Condé Nast College of Fashion & Design or CNC as it is known as,...
The Riri Group is a one-stop supplier of metal accessories for the luxury...
Bebop Sensors' smart fabrics allows for a new level of interaction between ...
Steve McCullough & Marco Weichert
Functional Fabric Fair & Design and Development GmbH Textile Consult respectively
Functional Fabric Fair is a trade-exclusive event showcasing the latest...
German company Dilo Group is one of the leading equipment suppliers of...
Label Seema Gujral
<b>Seema Gujral</b>'s designs for her eponymous label revolve around...
Label Archana Jaju
<b>Archana Jaju</b>’s Hyderabad-based eponymous label works with artisans...
Anjali Bhaskar has an experience of 12 years in the fashion industry. She...
Letter to Editor
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.