Overall sales up 10% in FY19: Wazir Textile Index

In FY19, overall sales increased by 10 per cent as compared to FY18, according to the just released Wazir Textile Index (WTI) – FY19. There has been a revival in the EBITDA with an increase of 10 per cent in FY19 compared to the previous fiscal. Raw material cost and employee cost saw an increase of 9 per cent and 8 per cent respectively.

Revenue for majority companies witnessed growth, while EBITDA margins remained stagnant, WTI showed. SRF has shown the highest sales growth of 41 per cent, followed by KPR Mill with 19 per cent. However, Indo Rama Synthetics witnessed a decline of 25 per cent in their sales.

Vardhman had the highest increase in EBITDA margin of 3 percentage points while Indo Rama Synthetics had the highest decline of 8 percentage points.

India’s real GDP has grown by 7.2 per cent in FY19 as compared to FY18. In comparison, average index of industrial production (IIP) for apparel increased significantly by 13 per cent in FY19 as compared to FY18, while that of textiles showed a marginal increase of 1 per cent.

Average wholesale price index (WPI) for textiles increased by 4 per cent in FY19 as compared to FY18, while that of apparel increased by 1 per cent.

After a negative growth in the first half of the financial year, the textile and apparel exports have shown a robust growth of 5 per cent in the second half of the financial year, according to WTI.

Apparel exports witnessed a degrowth of 3 per cent in FY19 as compared to FY18. After a decline of 16 per cent, apparel exports revived in H2 FY19 with a growth of 12 per cent as compared to H2 FY18.

Exports of all other categories have grown in FY19 as compared to FY18. Yarn exports witnessed the highest growth of 12 per cent. The EU, the US and the UAE remain the top export destinations for India’s textile and apparel products with a combined share of 54 per cent.

Average raw material prices increased in FY19 as compared to the previous fiscal. The average price of raw cotton rose by 9 per cent, while that of VSF and PSF increased by 5 per cent and 22 per cent respectively. The average price of cotton yarn, PV yarn and PC yarn also witnessed an increase of 12 per cent, 7 per cent, and 8 per cent, respectively in FY19, the WTI showed. (RKS)

Fibre2Fashion News Desk – India