Operating performance of upstream textile segments, primarily cotton yarn and polyester yarn, saw some moderation this fiscal after a sharp recovery last fiscal.
The first half was impacted by decadal-high cotton prices and reduced price-competitiveness of Indian cotton yarn globally, while worldwide dumping by Chinese manufacturers hurt the profitability and exports of polyester yarn makers.
Things have now started to stabilise with profitability levels in both, the cotton yarn and polyester yarn segments expected to recover next fiscal, supported by softer raw material prices, higher capacity utilisation driven by healthy domestic demand, and reopening of the Chinese economy.
With the US and European economies enroute to a slowdown, demand growth, and therefore revenue growth would be curtailed next fiscal.
Against this backdrop, CRISIL is organising a webinar on the textiles (upstream) sector titled 'Threads and wrinkles' on March 2, 2023, between 3 and 4 pm, where our experts will delve into:
Demand outlook for cotton and polyester yarn makers
Competitiveness of Indian textile (upstream) manufacturers in key export markets
Segmental profitability trends and credit outlook
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.
