Let's break down the key highlights:
Mixed Fortunes
Some companies shone bright:
- Trent Ltd: Saw significant revenue growth driven by strong domestic demand and retail expansion.
- Welspun India: Achieved a 29% YoY net profit increase through efficient operations and demand.
- KPR Mill: Posted a 15% net profit rise due to higher sales and cost control.
- Trident Group: Saw a 12% net profit increase by focusing on high-margin products.
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While others faced challenges:
- Raymond: Net profit fell 10% due to weak domestic demand and input cost pressures.
- Arvind Limited: Experienced an 8% net profit decline due to sluggish branded apparel sales.
- Vardhman Textiles: Reported a 5% net profit drop due to higher cotton prices and subdued demand.
Segment-wise Performance
- Yarn segment: Showed resilience, benefiting from steady domestic demand and export market recovery.
- Fabric segment: Had mixed results, with some companies facing competition and shifting consumer preferences.
- Fiber segment companies: Faced challenges due to fluctuating raw material prices and weak global demand.
Outlook and Government Support
- Recovery signs are evident, but domestic demand remains subdued due to inflationary pressures.
- Exports continue to drive growth, particularly from the US and Europe.
- Government initiatives like the Production Linked Incentive (PLI) scheme aim to boost the textile industry long-term.
In summary
- Q2 and FY24-25 outlook is cautiously optimistic, with gradual domestic demand improvement expected.
- Raw material price volatility, particularly in cotton, may impact profitability.
- Companies that navigate challenges successfully will thrive in this moderate-growth market."