Summary

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.

Do dial in.