The upstream textile sector, comprising cotton yarn and polyester yarn, has seen some moderation this fiscal. While cotton yarn players saw profitability dip to a decadal low due to lower cotton-yarn spreads and inventory losses, polyester yarn makers' revenue growth and profitability were hit by dumping of cheaper polyester yarn from China.
Next fiscal, however, holds better promise. The profitability of cotton yarn segment will benefit from improved availability of cotton and better cotton-yarn spreads stemming from benign raw material prices. And polyester yarn manufacturers will get a leg up as the recent implementation of Quality Control Order, which mandates a BIS certification for polyester yarn, is expected to curtail cheaper imports from China and support profitability.
That said, subdued downstream international demand due to continued slowdown in the US and Europe may rein in revenue growth next fiscal.
Against this backdrop, CRISIL is organising a webinar, where our experts will delve into:
Demand outlook for cotton and polyester yarn players
Trends in profitability and export/import
Credit outlook for cotton and polyester yarn players
The presentation will be followed by a panel discussion with industry leaders and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
