Summary

The upstream textiles sector, comprising cotton and polyester yarn, is poised for improved performance this fiscal. While recovery in exports and sustained domestic demand are expected to drive revenue growth in the cotton yarn segment, revenue growth in the polyester yarn segment is likely to be flat as increase in volume will be offset by anticipated reduction in realisations due to softening crude oil prices.

Both segments are expected to see improved profitability this fiscal. Cotton yarn players will build on last fiscal's recovery, driven by stable cotton-yarn spreads and lower inventory losses, while the polyester yarn segment will benefit from reduced flooding of Chinese imports due to policy measures implemented over the last two fiscals.

Additionally, the recent imposition of high tariffs by the US on Chinese imports is unlikely to have a direct impact on the upstream industry. However, India's position in downstream textile exports (home textiles and readymade garments) to the US remains competitive, given the higher tariffs imposed on China, a key competing nation in the category.

Supported by improving operating performance, the credit profiles of spinners in both segments are expected to remain healthy this fiscal. Moderate capital expenditure requirements limit the need for significant debt additions, thereby supporting stable credit profiles.

Against this backdrop, Crisil Ratings is organising a webinar where our experts will discuss:

• Direct and indirect impact of recent tariffs on the upstream textiles sector
• Demand outlook for cotton and polyester yarn players
• Performance trends in key import and export markets for upstream textiles
• Trends in profitability and 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.

Do dial in.

Eminent panellists:

For any assistance/ query, please email: Keegan Po | keegan.po@ext-crisil.com

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.