Feedback Here

fbook  tweeter  linkin  google

Global contents also translated in
Chinese

Wazir Textile Index: Q1 reflects overall sales growth in T&A mill sector

"The latest Wazir Textile Index (WTI) highlights that raw material prices increased in Q1 FY18 compared to Q1 FY17. On an average, raw cotton, viscose staple fibre and polyester staple fibre prices increased by 15 per cent, 10 per cent and 3 per cent respectively in Q1 FY18. Cotton yarn and polyester viscose blended yarn prices grew at 10 per cent and 11 per cent respectively. However, polyester cotton blended yarn saw a decline of 9 per cent in Q1 FY18 compared to Q1 FY17 on an average."

 

 

Wazir Textile Index Q1 reflects overall sales growth in TA mill sector

 

The latest Wazir Textile Index (WTI) highlights that raw material prices increased in Q1 FY18 compared to Q1 FY17. On an average, raw cotton, viscose staple fibre and polyester staple fibre prices increased by 15 per cent, 10 per cent and 3 per cent respectively in Q1 FY18. Cotton yarn and polyester viscose blended yarn prices grew at 10 per cent and 11 per cent respectively. However, polyester cotton blended yarn saw a decline of 9 per cent in Q1 FY18 compared to Q1 FY17 on an average. The WTI shows that overall, Indian textile and apparel mill sector exhibited growth in sales during the first quarter of financial year 2017-18. However, there has been tremendous pressure on margins due to increased input factor costs like raw material and manpower resulting in steep decline in EBIDTA levels.

Wazir Textile Index Q1 reflects overall sales growth

 

Consolidated sales of top 10 selected companies was Rs 10,122 crores in Q1 FY18 compared to Rs 8,961 crores in Q1 FY16. The WTI EBITDA was calculated to be 77.7 in Q1 FY18. This reflects an overall decline of 25 per cent in EBITDA margin in Q1 FY18. EBITDA decreased significantly due to impact of increase in raw material cost and employee costs. Consolidated EBITDA margin of top selected companies was 12 per cent in Q1 FY18 declining from 16.6 per cent in Q1 FY17. The WTI Cost for raw material (RM), manpower and others were 122.2, 130.5 & 112.9 in Q1 FY18. There was a significant increase in raw material prices, which resulted in overall cost, while manpower costs increased on the back of increasing labour wages. Consolidated RM cost constituted 54.9 per cent of sales in Q1 FY18, while consolidated manpower cost constituted 9.8 per cent of sales. The impact of the cost increase was visible in the declining EBITDA margin.

Growth in exports

Overall textiles and apparel exports in Q1 FY18 was $9.5 billion increasing at a healthy 8 per cent from previous year. Export of fibre, apparel, home textiles and filament has grown in Q1 FY18 as compared to Q1 FY17, fibre having the majority share. Highest growth was observed in exports of fibre growing at a rate of 48 per cent. Exports of yarn fell by 11 per cent in Q1 FY18. US and UAE were the largest export markets for India with a cumulative share of ~35 per cent. Share of UAE increased slightly in Q1 FY18.

Increased imports

The overall textiles and apparel imports in Q1 FY18 was around $1.7bn increasing significantly at 23 per cent from the previous year. Imports growth in Q1 FY18 was primarily due to a tremendous increase in fibre imports by 99 per cent over Q1 FY17. However, imports of other major categories yarn, home T&A declined significantly. China continues to be the largest import partner for India. Import share of USA increased significantly from 7 per cent to 13 per cent in Q1 FY18 while import share of Bangladesh declined from 10 per cent to 4 per cent in Q1 FY18.

 
LATEST TOP NEWS
 
MOST POPULAR NEWS